I'm in debt for about $25000 and that's not even including my car payments, insurance or rent. I'm through using credit cards but **** just keeps happening. At this point, I don't care too much about my credit since I can't afford anything else, I won't need anything else.
2006-06-17 04:16:51 · 13 answers · asked by lecheluvsmoochi 1 in Business & Finance ➔ Personal Finance
It impacts your credit file for awhile but may well be your best bet because they can usually negotiate lower interest rates and get the card companies to stop dinging your for late fees and overlimit charges. Sometimes they credit card companies will list you as current if you pay consistently for as little as the next 90 days.
This can go a long way towards making it easier to pay off the debt AND repair your credit file.
Do research the company carefully before you sign. The good ones are NOT expensive and do not require large sums of money up front, and do put money into your credit accounts right away. The bad ones can keep up to one month's payment!
Consumer Credit Counselors is the original firm and I think they go by different names in different areas now but google them and you'll likely find them.
Note non-profit status doesn't guarantee an honest firm. Questions to ask include the fee structure, how low do they think they can get your interest rates, and do they pay your creditors right away.
Beware of firms that offer to settle your debts instead. Those chargeoffs can become taxable income and really screw up your credit!
2006-06-17 04:24:36 · answer #1 · answered by Lori A 6 · 1⤊ 0⤋
Debt consolidation is a good way to lower your bills and save money. What you should do if you are going that route is speak to a credit counseling service. Don't call any of the ones on tv that say not for profit or any other ones that heavily advertise. It is wise to go to a local one that is supported by the United Way. They will get you better results that others. Just find a local office.
2006-06-17 04:30:38 · answer #2 · answered by pcccmt 1 · 0⤊ 0⤋
You would do much better in the long run by contact you credit card companys yourself and telling them that you would like to make arangments to paydaon your debt and avoid bankrunptcy. Most are very receptive to this and have a variety of plans they will work with you on. Next try to pay a off the one with the hightest credit rate fish -- solwy and one by one they will be gone. Debt consoludation will cost you between 500- 3000 over the course of 5-7 years - that just more debt! you can do the same thing they do for free
2006-06-17 04:29:58 · answer #3 · answered by trkerwf 1 · 0⤊ 0⤋
I used an organization called Consumer Credit Counseling Services. They're nonprofit and get high rankings. The greatest thing about the program is the fact that they lower your interest rates on your credit cards and can give you an actual date when everything will be paid off. You might not actually save money, since the payments will be about the same, but you're actually paying off principle and every month is one closer to being paid off. It's a good feeling.
2006-06-17 05:45:02 · answer #4 · answered by cookinglikeaturkey 2 · 0⤊ 0⤋
I am in a similar situation and I suggest finding a credit counseling service to use. I've tried contacting my credit card companies on my own and most acted as if I were crazy for asking. I did have one that lowered my interest rate 2%. Credit counseling services seem to be able to get you a better deal. Find one that doesn't hold the first payment and that does not charge large fees.
2006-06-17 04:41:52 · answer #5 · answered by JJ* 1 · 0⤊ 0⤋
Maybe debt settlement which in fact is different from debt consolidation. You should research different programs first. I'm going through a similar situation. I feel like why worry about my credit score.
2006-06-17 05:11:21 · answer #6 · answered by Maria M 2 · 0⤊ 0⤋
Debt consolidation loans charge interest on the interest you are already paying.Have you looked into one of the debt counseling services?We did this 5 years ago and are debt free today and our credit is improved too.
2006-06-17 04:43:27 · answer #7 · answered by wandadecatur 3 · 0⤊ 0⤋
I just did and it was definitely worth it. Saved almost $200 per month by getting a home equity loan and consolidating my debts. I suggest that you included everything, even the car payments. I took out $40,000 and it has helped me tremendously.
2006-06-17 04:37:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
First of all you need to understand how you got into this mess in the first place. Be honest with yourself and list the largest debt firsthand, and go down the list. Ask yourself "Am I a compulsive buyer?" "Are these purchases really necessary?" Next, do consult for debt consolidation because they are qualified and objective about your expenditures. Be realisitc and 'honest' to yourself in order to go forward. You do need to care about yourself, stop the bull and get help with your credit immediately.
2006-06-17 04:30:47 · answer #9 · answered by jenaid2u 1 · 0⤊ 0⤋
Check out the link below. They help you pay down your debt in a fraction of the time you would have if you did it yourself, and its not a debt consolidation. They also help raise your credit score, and it doesn't cost thousands. It's at least worth checking out.
2006-06-17 05:30:07 · answer #10 · answered by Miss A 1 · 0⤊ 0⤋