how does the whole credit card consolidation process work?

Question

i have\ about $25,000 or more of credit card debts and i really want to pay it all but just can't so soon as am a single working mother with two kids... my credit rating is the lowest and all my cards have gone to collection agencies and attorneys have been calling and i can't answer i can't pay so much at one credit card alone and i want to have one low payment...i m scared cuz i heard you could go to jail and i m worried what would happen to my two little babies? i could go on and on about how crazily worried and sick i m from thinking about this every nite... but how do i go about the process and how long does it take please give me through information since i don't have much time to go here and there and research on my own i don't have much time and who ever gives me the complete information on how, how long, exactly how the process works will get the best answer! plz i really need help here thnx a lot for your responses. i no itz late but i want to work this out!

just before answering my question, please read it throughly. my situation is THE WORST RITE NOW....i havent paid my bills in ages, and they have gone to collection agencies...i want to work this out with them i want to know a solution!!!! consolidate...who where when how? non-profit....etc!

WHAT HAPPENS AFTER THE CRD CARD HAS BEEN GONE TO COLLECTION AGENCIES??? HOW CAN I WORK THAT OUT?

Answer 1

I would suggest you try to find a local place where you can see someone face-to-face (as opposed to over the phone). A good, reputable non-profit is CCCS or Consumer Credit Counseling Services. They will set up an appointment with you and ask you to bring in a bunch of information: your last few pay stubs, all your bills and statements, a copy of your credit report (if you have one handy, if not, they can pull one), etc.
They will go over everything with you and let you know what they can do to help. They are not able to consolidate all bad debts, so be aware of that up front. They are nationally recognized, so they are able to negotiate pay offs for you as well as lower your interest rates on credit cards and the like. They can even change the terms (like the monthly payment). After they contact all your creditors, they take into account your monthly income and come up with a figure that will not stretch your budget beyond what you can afford. They will ask you to make a monthly payment to them and then they will divy up the money to the proper people.
After a month or two, it will show up on your credit report that certain accounts are "in consolidation". That is not a bad thing per se. Creditors can at least see that you are taking responsibility.
CCCS might also ask that you make a small donation since they are a non-profit. They've been known to waive the fee if you absolutely cannot afford it. One important thing to remember is that you cannot default on your agreement. It looks really bad credit-wise if you do...so just make sure you're ready to embark on the repayment. The length of time really depends on the severity of the debt (which looks fairly bad) and how much your monthly payments are.

I hope that helps and I wish you the best!
:-)

Answer 2

ok - this is my experience..I went to consolidated credit counseling services...they have a website www.consolidatedcredit.org I think I filled out a form, or called. but I know I had to tell them all the creditors information - name, amount owed, how much I was paying minimum etc.. they ask how much you make, how much your other expenses are (so that they can figure out how much you can pay). It never went against my credit - in fact..I had a great credit score when I finished (It took me 4 yrs..to get from $24,000 to $0). What they do is they call all your creditors - slash the interest rates (some creditors agreed to 0% which I found to be amazing!) and get payments down to a minimum that you and the creditors can agree with. There are some downsides. You CANNOT open any other credit cards and you CANNOT use any of your credit cards that are in the program. They only accept cashiers check, money order or western union - no personal checks can be used for your payments.
The whole payment you make, will be disbursed amongst all the creditors. They give you a 'kit' which informs you what to tell people who are harrassing you, such as collection agencies. I was happy with the service. I know everyone's situation is different, but if this is what you are interested in, its hard work..and sometimes frustrating but when you have to do something you find a way. I hope this helps you..I hope whatever you choose to do works for you. I hate to say this but if it is too much for you and the credit counseling won't work for you..you may want to consider bankruptcy..many people reading this would think I'm crazy, but many people do it ,unfortunately people who don't really have to, but it is a solution if there is nothing else that will help. Like I said everyone's situation is different -good luck and hope you get to where you need to be.

Answer 3

When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.

All credit card debt consolidation loans include some type of credit card and debt counseling. You have to trim your lifestyle to eliminate unnecessary expenses. This will allow you to set your house in order. But this necessary, as the ultimate goal of debt consolidation is to help you out of debt, while keeping your home.
http://debts-to-wealth.com/category/Credit-Card-Debt-Consolidation.html

Answer 4

$a million,750K? Do you advise your debt is barely $a million,750 or that your debt is $a million,750,000? If the former, pay as much as you are able to to the cardboard with the optimal interest fee & the minimun + $10 to different. as quickly as the 1st is paid, deliver all you are able to to the different. you will have them the two completed b/f you already know! the two way, depart the two enjoying cards & homestead in a locked container. in case you try to pay them off it won't make any experience to pile on extra debt. based on your extra notes, it appears that evidently such as you notably in charge with your $'s, so which you do no longer ought to decrease them up yet. (going 6 months w/o working & basically gathering $a million,750 is rattling stable!). Cancell the two of the enjoying cards if there is any annual fee. once you have them paid off, it incredibly is all right to have some enjoying cards (returned as long as there is not any annual fee), however the trick is that this; under no circumstances EVER can charge extra advantageous than you are able to repay in one month! it incredibly is great being waiting to apply people's funds for a quick time (at an analogous time as yours sits in an intrest bearing account), yet given which you will ward off rolling over the debt (inflicting you to pay interest). utilising a mastercard in this type will help build your credit. in case you do owe $a million,750,000, decrease up the two credit enjoying cards, & get to a credit counsiling provider immediately!

Answer 5

you have to be careful. some go to the credit card companies and negotiate your balance and it is bad for your credit rating. you still have to pay the full amount as that is how they make their money. if at all possible, don't do it. pick the highest interest credit card and concentrate on paying that off. pay the minimums on the others until the one is paid off. as long as you pay at least the minimum your credit will be fine. the other option is to look into the special offer cards that have no interest for 6-12 months. but be careful, if you don't pay that off by the end of the promo period they charge you back interest. I wish you luck