Card Consolidation Counseling Credit Credit Debt Non Profit

I have 4 credit cards with approx. $25,000.00 worth of debt on them. I would like to get ahold of a non-profit debt counseling service in order to get rid of the high interest rates and pay them off alot sooner instead of only paying the interest and the over the limit fees. I have not used these cards for the past 5-6 years and the accounts are closed except for me making payments on them. I am not even touching the actual principal that I owe, although, I have probably paid enough on these cards to have actually paid off the actual principal. How is the best way to do this and what are some reputalbe non-profit agencies that will help achieve this? I have also heard that some credit cards will take a settlement on some accounts. Is this a good idea and how much of the amount owed do they usually want? I realize that this may hurt my credit rating but to be honest with you it isn't worth squat now, so what is the difference? Does the debt consolidation hurt your credit as well?

You would want to get in with a company that is non profit as you stated in your question. Other companies charge you a fee for doing this for you, as much as 50.00 a month. Consolidated Credit Counselors is a company I used before the only problem I had with them is the agreement they have with the issuing banks it to make payments that is 5% of what you owe. That was too high for me so I had no other choice but to do a bankruptcy. In time your credit rating will improve. But by taking action and just not walking away will definately improve your credit rating.

2006-02-22 08:23:30 by mony ou

Consolidate credit card debt by taking out a personal loan or doing a credit card balance transfer. Consolidate credit card debt with tips from a ...

I've got about $63,000 worth of debt between 1 credit card, a car loan and school loans (mostly school loans) and am struggling to pay the credit card. mostly, because at 15.9% and paying the minimum, it's not going down. I've been told that debt consolidation is not the way to go and to check out debt management. My questions:
- If you go through a debt management company, does this impact your credit score?
- Debt Counseling Corp. claims to be free but I'm skeptical. Are there hidden fees with these places? They say they're non-profit.
- I don't want to pay for seminars, books, Website access etc. like Dave Ramsey's site only to find out I've thrown more money away and am no closer to being debt free then I was before shelling out the cash.
- Has anyone undergone or is currently using debt management (lowered APR's) and can recommend a reputable company? I know many aren't legit.

This is my first step in figuring it all out - research. Any help would be great.

I don't know about this company, but be careful.

Credit repair companies charge large fees, which, if put toward debt repayment would improve your situation. Some firms can make your problems worse.

The three main tactics that they use are:

(1) sending letters to initiate disputes about errors on your report. You can do this for free.

(2) sending letters to initiate disputes about things that are derogatory, but are not errors. Some creditors will not verify the debt and this gets deleted. Good. Now the bad news. You can get tagged as initiating frivolous disputes, impairing your ability to fight real errors in the future. You can end up unable to borrow because you won't have a credit score. A lender who requests a score will get a message back "Unable to process - too many lines in dispute". Try and borrow with no score.

(3) They have you route your money for bill payment through them. No creditor will negotiate if you are current, so the creditors stop paying on your good bills so they go into default and then negotiates a settlement at less than face value. This saves you a few dollars now, but makes you look like a chronic deadbeat to all lenders in the future.

2008-03-29 15:33:48 by Majesty

How can I lower interest on credit cards? and lower the minimum payment?
I am working with a non-profit to help people in the community with debt consolidation and budgeting. I am looking for tips, suggestions, strategies and proven methods for debt consolidation/credit counseling. Also, in need of assistance brainstorming for budgeting for people of various ages and lifestyles including money saving ideas on:
mortgage/rent
homeowners/renters insurance
property taxes
home repairs/maintenance
home improvements
electricity
water/sewer
natural gas/oil
cable bill
internet service
telephone land line
cell phone
college tuition
groceries
eating out/restaurants/lunches/snacks
child support
alimony
day care/babysitting
insurance(medical,dental,vision)
medical expenses/ co-pays
Fitness(yoga, massage, gym)
car payments
car gasoline/oil
auto repairs/maintenance/fees
auto insurance
transportation(tolls, buses,subway)
credit cards
student loans
other loans
clothing/dry cleaning
toiletries, household products
gifts/donations(e.g.)church
grooming(hair, make-up, other)
miscellaneous expenses
Please any help is greatly appreciated!

You don't want to reduce the minimum payment. If you pay less than the minimum payment, you will never pay off the debt. That's not an exaggeration either. The amount you pay interest will add up and you'll owe even more next month. You should be strongly encouraging people to pay more than their minimum payment, and as someone who is working in debt management I'm shocked you'd even suggest trying to drag out credit card debt even longer with how interest works.

Reducing the interest rate can sometimes be as easy as asking your credit card company for a lower rate, but if the account isn't in good standing, they are not likely to grant it. Some credit cards offer low introductory rates for 6 months or so, but the last thing someone with financial problems should do is add another credit card to their wallet. If they can be approved for another credit card and transfer the balance to a lower interest rate card, they need to make sure they close their old account so that they aren't tempted to spend more money that they don't have.

When paying off their debt, they should make sure to pay off the debt with the highest interest rate first. If they have a student loan at 5%, a credit card at 15% and a department store credit card at 25% then they need to make the minimum payments on all and use any other money they may have to pay more off on the store credit card.

The goal should always be a 0 balance on all credit cards. Leave them at home when shopping so that impulse buys don't get the best of you, etc.

2009-08-12 06:53:51 by grimseraphim