For DEBT solutions ,which would be best ?

Question

Working with a non profit company or hiring an attorney?

Answer 1

Check this site for a non-profit credit counseling service (CCCS): http://www.nfcc.org/

A lawyer would be pretty expensive, unless you need to file bankruptcy.

You can work on cleaning up your own credit/debt. First, write down everything you spend money on for two weeks. You'll be amazed at how much money you are wasting.

Sit down and make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Take every penny you can squeeze out of that budget and throw it at the highest interest rate debt, while making minimum payments on the rest. When the highest interest rate debt is paid off, move to the next till they are all paid.

Find ways in increase your income. Have a garage sale, collect alum cans, get a second job -- pizza delivery has flexible hours. Throw all this at the debt.

If you really work at it you can pay off all your debt in 2 or 3 years. You will have a good on time payment history and and better money management skills.

Answer 2

Neither. A non-profit company will still charge you a fee on top of what you are in debt for. Attorney charges are also very large. If you are contemplating banktrupcy you will have to have some sort of lawyer. Beware, there's tons of sharks out there.

I suggest you do it yourself. For the cost of dinner, you could buy a book to learn how to budget as well as cut up your credit cards. Call each credit card company, put a halt on the account and discuss reduced interest rates. Don't take no for an answer. They would much rather have you pay them off than default.

Then take all of the now fixed debt payments and if you have any extra cash, put this towards the accounts with the largest interest rates.

There are ton's of stories out there where people dug themselves out of debt and if you can be succesful at it then I guarantee that you will have the discipline to not go back.

A quick story: I knew of a family who was in credit card debt over $20,000. They refinanced their home at an rate that wasn't so good because of the debt. But, they paid off and canceled all of their credit cards. Then after a year, they were able to get conventional financing for their home at a 30 year fixed rate. They also paid off their cars and a couple of student loans along the way. It's amazing how much cash you will have if it isn't going towards $20,000 of credit card debt.

Within a year, they only debt they had left was on their home. Of which, it's value was increaseing faster than the interest rate they were paying on the loan.

They were able to start putting tons of cash in their 401k and company funded Employee Stock purchase fund. They litterally went from $40K in debt to a Net Worth of over $57K in a little over a year. That's a transition of $97K.

Ok,ok....It was us. But you can do it. Cut up the cards, pay them off and get out from under the automobile debt! You'll be freer than you have ever been. Quite frankly I'm scared to death of going back!~

Good Luck!!