Archive for March, 2010
behind on bills and credit companies don’t want to work with me…need help….expecting and can only work part time now….
The first thing you need to look at when considering a company offering to "help" you is their size. Settlement is a good option but only if the company has enough clients/repertoire with your banks and creditors to actually negotiate on your behalf. Consolidation is not an option because you’re behind and it will cost a large amount to become current. Feel free to ask my any questions about reputable companies.
Respectfully
I’m behind in my bills and have an opportunity to go on a debt management Plan, but need more info to see if it is a good idea for me.
My advice is this. Check out Dave Ramsey. He is a financial counselor who helps you get out of debt by teaching you how to spend your money to make it happen. He’s not a get rich quick scam, or just dump debt out the window scam, he shows you how to make extra use out of the money you have coming in now. I have been doing his program for a little more than a year and have paid off over $5000 in credit card debt, and all of my hospital bills from having my baby. Not only am I getting out of debt, but as I learn his methods of doing things, it has changed the way I look at money. Good luck.
Please provide me a URL so I can check them out.
Start by looking around a good credit counseling company, and not become a victim of one of the various credit counseling scams that are prevalent today. Do not be misled by any ad that assures you quick fixes for your credit report. This is an impossible promise. Instead search for a honest company accredited to Consumer Credit Counseling Services.
Then fix a meeting with a professional credit counselor, and apprise them about your debt situation. Do not omit anything as they will require the entire information to draw up re-payment plan according to your situation.
http://debts-to-wealth.com/category/Credit-Counseling.html
What is the benefit of using debt consolidation for credit card debt? I am trying to decide to either call the credit card companies myself and negotiate for a lower payoff/settlement amount, or to use a debt consolidation company? If I negotiate with the credit cards directly, will that be considered a charge off? I would want to settle myself if I can to avoid paying all the months of high interest. But if I use debt consolidation, then they will charge me a fee every month for so many years? What is their purpose? What would be the best route to go financially?
You have to make sure you have a reputable debt consolidation company. There are many out there that are not. I know that Consumer Credit Counseling is good because NCUA backs them and I have to work with them to coordinate classes for our members. The thing about debt consolidation companies is that sometimes they can get a better payment plan or rate because they have deal in place with the cc companies. Also, the credit card companies feel better because they know you are working with someone to actually pay down your debt.
You could also look into a consolidation loan through a credit union or bank. You have to look around and make sure you are getting a decent interest rate.
I think that you can get free consultations with the debt consolidation companies. This should tell you what the costs/fees would be. You can always try the calling the credit card companies first to work out a deal.
Good Luck!
I am going to let my house in California foreclose. I have about $28,000.00 in credit card debt. Should I file for bankruptcy? Should I just not pay my credit cards? Or should I continue to pay my credit cards? Is there a certain dollar amount of income you are allowed to make to be able to file for bankruptcy?
Before you look into BK, you should check out www.debtbills.com. They are an alternative to BK. You will have exeperienced attorneys that will be contacting your creditors on your behalf.
Have searched and searched for a debt settlement company that has a good reputation of standing. So far, all seem have a lot of customer dissatisfaction. I never seem to read more than one or two compliments on any given company. Any way to find a legit one?
Be your own debt settlement representative. In most cases you can arrange your own settlement. They may require you make some payments for a few months and then discuss settling the debt. You don’t need to hire a company.
I am having a hard time choosing between solution to my debt problem. i have around $8000 in credit card debts right now. All of them are in collection agencies now and I have no means in paying all of them and all are delinquent too. I’ve been thinking of doing a debt program. I’ve been looking around and have seen debt consolidation programs, debt settlement programs, consumer credit counseling, credit counseling agencies and debt management plan… and I have a feeling there are more I don’t know of. My question is which one would be the best option. By now I know my credit is bad and I have nothing to put into collateral. I’m not really comfortable in doing anything online because I want to see and talk to someone face to face. What are the fees involved in the programs? Do you have to pay them monthly too? I just need all the information I can get right now.
Debt consolidation programs usually leave you worse off than you were originally. My suggestion would be to call your creditors and ask them if they could get you onto a payment plan that will work for you. Also, pick the card with the lowest rate and ask them if you could consolidate all of your debt to their card with the agreement that you will close other cards. They may do this, and then you will only have to make 1 payment per month and deal with 1 company when you’re having trouble making payments. If this isn’t an option, try to make your minimum payments while any extra money goes to the card with the highest interest rate.
Just wondering if any UK Yahoo! users knew anything about a debt management company called Money Worries LTD which i am investigating at the moment and if they were dealing with them, could they tell me any good or bad stories about the company?
Thanks.
Hey there!
Avoid any company like this if you can. Speak with National Debtline (highly recommended) or the Citizens Advice Beurau instead. Very often it’s possible to come to an arrangement with your creditors so that they’ll freeze interest and let you pay what you can afford.
I’d only go to a company like this on the reccomendation of National Debtline or CAB.
What chance has a 40 years polish man who looks even 55 speaking broken english with no house, money on a debt management and house repossessing process to find a girlfriend in UK?
He need to straighten up his life before dragging someone else in his mess.
He already have a lot of problems without adding the stress of a relationship to the top. And a relationship developing in this climate don’t have much chances for success.
Once he’s back on track, he can start going out, meet new people, join a club or something. I’m sure a woman somewhere will find his accent charming. An who care about age.
out of hand. I am now in the position of either having to file Bkrpt, which I qualify for, or pay my creditors through a credit counseling service. After a divorce, my home was sold (no equity), and at the time I was unemployed. I am now employed and renting a tiny house but hoping in the not real distant future to purchase one. I am trying to get my financial affairs in order, but the payments to these creditors are far more than I can afford without going through credit counseling. If I pay them through counseling, it will take several years to pay off my debts. If I file bankruptcy, it will remain on my file for 10 years, but I’ll be able to buy a home, albeit with an astronomical interest rate.
Any advice?
well, sounds to me like you are well aware of your options, however, i’d shave about 3 years off that bnkrpt on your report. my husband filed many years ago…7 to be exact and it JUST came off his report.
i went through a program through a law office and it’s DMB financial. i was in about $15,000 with credit card debt out of college. looking back, i probably should have just applied for a loan through the bank and paid them off and owed the bank, however, working with DMB has taught me alot and after 3 years, my program is almost done. we are waiting to settle the last account, which should happen in the next few months.
with DMB, they take power of attorney over your accounts….just the ones that you owe. so, the collection calls go to them…not you! then, they work out a workable monthly payment with you and that goes into a trust. then, once there’s enough there to settle on a card, they settle and move onto the next account.
meanwhile, all this is happening and your credit is going WAAAAY down the toilet. HOWEVER, when you are done the program they fix all of your credit. so, your report is sparkling when you’re finished. the only catch is that IF you get back into the hole while they are working with you, then they will stop all efforts and the contract will be void.
so, if they settle this accoutn and see that i got another card and ran that one up and it’s bad on my report, then they wash their hands of me.
SO, it’s been a GREAT experience learning how to manage my money and live credit card free.
my husband had some when we married and we are in the process of getting the last one paid off. very nice.
the best part…when we get all of our credit woes under control we will have freed up $500+/month! that’s a nice car payment!!!
so, i would check out DMB OR see if your bank would approve a loan for you…at least then it’s just one payment per month.
take care:)