Answers
We started a program with "Consumer Credit Counselors" This progarm has us pay the Consumer Credit Counselors, then they pay the credit cards every month. All they do is lower some of the interest rates. They don't negotiate amount owed. The payments are too high for us, so we looked into other alternatives. We found one company that will do it differently for less. They have you pay into an escrow account, and they pay off each credit card individually. They say they negotiate lower balances and interest rates. The payment would be lower and the payoff time cut in half. Does anyone know of any reason we shouldn't do this? Are there any other better ways? WHAT IS THE BEST WAY TO GET CONSUMER DEBT RELIEF with no loans?
I am not saying that debt settlement/negotiation is the wrong way to go. However, it will damage your credit further.
If you choose to settle on your debts, you can do this without paying enormous fees to a debt settlement company. Keep in mind that any forgiven debt of $600 or more is automatically reported to the IRS, in which you would owe taxes on it as a form of income.
If you can continue to make the payments on your current plan, then that is likely the best option for you. If you are having trouble, give your credit counselor a call to discuss possible changes to your account.
My hero, Dave Ramsey, tells of abusive practices and the violation of Federal law incorporated by debt collectors - particularly credit card debt ...
I'm horrible at this, any help would be appreciated.
I put credit card or consumer debt, because i am not sure which one I'm going to explore yet
1. How people get into debt
2. How people can get out of debt
3. How people can avoid getting into debt in the first place
Similar debt fewyears back in us around 700 billion dollers
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Will the government be bailing out the credit card debt like they did the high-risk mortgages? Is this the time to just spend, spend, spend as soon the U.S. government and Bush Administration will once again bailout the private sector? Prsident Bush said, America will know when the economy is up and running again...spending will increase! Is this credit card debt what the president had in mind? Will this situation be another disaster just like the housing market and risky mortgages? Is America facing one bailout after another for nothing less than irresponsibility? Will bad behavior on the part of lenders be once again rewarded by shifting the costs on to the tax-payers? How far off the track is this train running full-steam ahead, called the United States of America?
Because most people spend credit cards as if they are free money and like it is never ending and you can spend spend spend. They can stop any time, but they think that it will just pay itself off, no worries added. These people use them constantly, and most of the time they can't afford to use them.
Please suggest a Consumer Credit Debt Consolidation (Non Profit ) preferably as we want to get rid 15k credit card debts
Consumer credit counseling will not help you eliminate the debt, its called debt management for a reason. It will take 5-9 years for you to complete. Just so you are aware of your options here are the different options that you might have to get rid of your debt.
The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.
Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts.
Debt Settlement
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.
Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact.
Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.
Credit Cards vs. Cash Advance Loans
Shopping on borrowed money is okay according to Victoria Consumer Credit Counselor Jack Kashouty, as long as the shopper chooses the right means to do so. Credit cards he says are not a bad thing, but the buyer swiping the plastic needs to be aware of interest rates and most importantly, set a budget for holiday spending.
"Usually with credit cards, when you want to buy something, we figure about roughly 1 1/2%of your gross annual income. So if you're making 30-thousand dollars, 1 1/2% is roughly $450, that's what you should budget for christmas." Consumer Credit Counselor Jack Kashouty said.
If a credit card is your means for purchasing holiday gifts, he has a piece of advice that could help save you from losing track of your debt.
Freedom Debt Relief offers tips to avoid holiday credit card debt ...
SAN MATEO, CALIF., Dec. 15, 2009 -- This year, Americans spent less and used less credit on "Black Friday," a sign that consumers are moving in the right direction to avoid over-spending at the holidays. As the holidays approach, Freedom Debt Relief offers tips to help consumers stay on the right track and avoid excessive credit card debt this holiday season. According to the National Retail Federation (NRF), more shoppers hit the stores this year than last year, but they spent less per person. "Overall U.S. consumer spending is predicted to drop this year, but if you are a shopper who is used to putting holiday expenses on credit card debt, this year – more than ever – may be the time to think...
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