Credit Card Debt Consolidation Program

Due to a family tragedy, my husband and I are currently in $26,000 of credit card debt. All of the payments are current and the cards are paid on time with the accounts still open (we are not still charging, though). We are looking to seriously pay this down before the interest eats us alive. My husband wants to take out a bank loan and pay the cards off that way, but I am wondering about the debt consolidation programs you hear about (I know some of those are scams and some are real). Any advice or experience?

A bank loan will require some form of collateral, like a house. If you can't pay the loan, you lose the house.
Debt consolidation will trash your credit score.

You are better off negotiating with each credit card. Mention to them that you may have to declare bankruptcy due to the high rate and could they lower the rate. In most cases, they would do that.

2008-02-10 19:32:32 by honhill

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http://www.cccs.org/ try this one we work with them a lot I work for credit card co

2009-07-16 15:39:10 by ain

Price: $22.95

yes but either case it would be a waste of time and money == take all you bills and figure the minimum payment on each one and add up the total -- say you short 29.00 there goes the Internet service -- fifty short u just lost cable tv -- 100 short the cell phone is gone right on down the line until you have more coming in and going out -- just keep getting rid of wants -- you may be shopping at thrift stores before you are done but least you are working toward a debt free life not bankruptcy!!!

2007-09-04 12:48:46 by Brittany B

I'm currently in a debt consolidation program but it's not helping me at all with my debt. They charge me $40 a month just for their services and my debts are still the same as when I first started the program 6 months ago. Help me please!!

Have you looked into Consumer Credit Counseling services? I'll paste the address here for you. You can read the FAQ page to answer questions you may have about them.

2007-05-03 22:05:30 by gkowal1

I am 23 with a nine-month-old son, and I owe (on top of my student loans from college) approximately $30,000 in credit card debt. I am looking to do a debt management/consolidation program, but was wondering if I should just contact those credit card companies that say to call them if I have "financial difficulties" instead? Also, which debt consolidation programs would you refer, if any? Thank you!

I'd do a lot of research before you enter into a contract with a CCCS because while it might get the bills paid - it will not protect your credit score or rating any better than dealing with it yourself. You don't state what your income is and if buckling down and paying more each month on your cards would get it paid off. I had $40k of debt, $30k being CC debt and drowning in it having been through a messy, expensive divorce. When my attorney did the calculations, he figured it would have taken me 40 years to pay off the $30k of CC debt at the rate I was going.

So I wound up filing a Chapter 7 BK and it wiped out 100% of the CC debt legally in about 3-4 month's time (from the date of filing until discharge date).

The other $10k was a car loan, which I continued to pay on 'as agreed', did NOT reaffirm the loan, and they did not come and take my car. I paid it off back in April and now it has a clean title.

No ~~~BK is not for everyone, but it sounds like you have a lot of debt and a little one to take care and his future to think of. And while going through a BK will trash your credit/score, it's no more so than muddling through years of dealing with collection agencies, some CCCS that will likely "fail" you.. and creditors that will STILL report you even those you are in a payment plan. Or you can wipe out the debt legally through a chapter 7, start fresh and be able to SLEEP at night.

You can get a free consult with most any BK lawyer and he or she will go over all of your debts, your income and help you decide the best course of action.

I have BEEN THERE and done it and this is not an "ad" for anything,but a testimonial. While it wasn't something I really wanted to do .. BK was the best solution for me during a really tough time in my life. I am not sorry I did it.

Hope this helps. Ignore the jerks that can't even give sensible or helpful answers and just bash you. It's clear they've never walked in your shoes.

2006-09-13 16:35:48 by Chris M