Does it work?I dont want to file bankruptcy...but I cant afford to make payments every month on each debt I have.(I am a single mother working 2 jobs with no help from the father at all).I can only afford about $100.00 a month to pay towards my debt.I have 16 negative items on my credit report...totaling about $7,000.I feel overwhelmed and it just seems so hopeless...any suggestions would be greatly appreciated:)
2006-11-17 14:06:13 · 7 answers · asked by swanlbby 3 in Business & Finance ➔ Personal Finance
Does it work?I dont want to file bankruptcy...but I cant afford to make payments every month on each debt I have.(I am a single mother working 2 jobs with no help from the father at all).I can only afford about $100.00 a month to pay towards my debt.I have 16 negative items on my credit report...totaling about $7,000.I feel overwhelmed and it just seems so hopeless...any suggestions would be greatly appreciated:)
2006-11-17 14:15:36 · update #1
please read the fine print on whomever you are looking at. Most of those debt consolidation agencies buy out your credit with the credit companies which goes on your credit report just as long as bankruptcy does and hurts it just as bad. I would try contacting the people you owe money to and see if you could work something out before trying one of those fad things you see on TV.
2006-11-17 14:15:05 · answer #1 · answered by T L 4 · 1⤊ 0⤋
If you only have $7,000 in debt, the consolidation would probably be something that would be easy to do for you. I filed bankruptcy before the laws changed and it took me longer to drive to the courthouse for the hearing than the hearing took. But, I had nearly $20,000 in debt also.
I'm sure that you can find a consolidation program that would accept the $100 a month that you have to put toward the debt. There are many options out there, but be careful of the one's you choose.
If it's credit card debt, go through your credit card company to find out who they suggest. If it's not credit card debt, check your local government agencies for credit counselling opportunities that they offer.
Having been there myself, I don't envy the situation at all. Your childs father should be helping you out, contact the state agency that handles child support in your area for information about a wage assignment.
Good luck.
2006-11-17 14:19:08 · answer #2 · answered by somewherein72 4 · 0⤊ 0⤋
I have done it both ways. Years ago, I went bankrupt and it ruined my credit for a long time. About two years ago, I decided to go to Consumer Credit Counseling in my town-Waterloo, Iowa. They charge me $30 a month and I pay them so much money to cover each debt. They go by your income and they talk to your creditors to get your intrest either dropped or lowered so you can actually pay on the card itself. I don't know, but maybe there is a place that only charges a one time fee. I actually went on line to find the place I go to or you can call the library and they can do that for you. My debts will be paid off in about 2 years and I will be free and clear. I wish you luck.
2006-11-17 14:18:21 · answer #3 · answered by Rebecca P 1 · 0⤊ 0⤋
it can be very helpful and yes it does work although it is not free,and it does show on your credit report that you are using a service you may be better off moving balances to other credit cards with lower or no interest.and if you send debtors something every month that also shows on your credit report that you are paying which is better than not paying anything at all.it costs about $400 to go through a debt consolidator.
2006-11-17 14:17:39 · answer #4 · answered by vanessa g 5 · 0⤊ 0⤋
I went t o a place called consumer credit counseling they helped a lot- But this was many years ago- They did help me get out of debt but I do not remember howmuch I paid them monthky instead of the individual companies... good luck
2006-11-17 14:14:43 · answer #5 · answered by admiredi 4 · 0⤊ 0⤋
Based on your hardship your monthly payments in a credit counseling program may be too much for you. Settling your accounts with a licensed debt settlement company such as http://www.fdnsolutions.com can help alot.
2006-11-17 17:06:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you have a church home, check with them about a free financial counseling organization. There are plenty. They will advise you without any special interest on their part. You may be able to contact all your creditors and get them to reduce your amount owed if they know you're working on it. Good luck, and thanks for your scruples.
2006-11-17 14:15:57 · answer #7 · answered by Papa John 6 · 0⤊ 0⤋