Credit Card Debt 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

www.debtguru.com Free financial analysis to help you decide whether a credit card debt consolidation program would work for you. Check out our ...

My house payments are too rise every 6 months. if i consolidate i can stay in the home maybe 6 months longer-but probably wn't be able to refinance-and will eventualy foreclose. if that happens-I will move out of state to live with a family member and will not have income right away-I might default on the credit payment agreement. Can i do a bankruptcy if that happens???

seems like you are going through some things right nowi.... please check out these boards that havehelped me

if you email me i can give you more info .. too much to post here...

2008-01-15 20:37:21 by catfur4u

Price: $2.99

I recently heard on radio about a debt free program. They officially negotiate on your behalf with the credit card companies. What may be the Cons? Is it safe to rely on Debt Settlement Program to free from one's credit card debts? How may it affect one's credit score?

Do not fall for these debt consolidation scams. The debt will still be there and also are your spending habits that got you there in the first place. You won't get yourself out of debt by borrowing. The only true way to get out of debt is to change your habits. One way is to get yourself enrolled in a good debt reduction program. There are many good ones to choose from. Sometimes it can be hard to choose the best one for you. You can visit the web site below for reviews of some of the best ones.

2009-01-23 19:10:47 by Peace Lover

Price: $5.95 $5.95

They announced in the news that companies are willing to forgive from 10 to 40% of the debt, and allow up to five years to pay it off with no interest. This is due to the economy. This isn't a "company" that is offering some sort of program.

This is only a proposed idea by a consumer advocacy group and some major banks and is not yet available.
The new pilot program — which the banks hope will become permanent — could involve as many as 50,000 people struggling with credit card debt. On an individual basis, the amount of debt to be forgiven would rise according to the severity of the borrower's financial situation, up to a maximum of 40 percent.

But this program does have it's downfall.

There would be a tax benefit. Borrowers would be able to defer payment of income taxes they owe on the forgiven part of the debt until after the remainder was paid off. The lenders could wait until then to book their loss on the forgiven debt.

Also, it would affect your credit score in that this would become a charge off on ones credit report and will lower ones score.

Hope this answers your question

2008-11-07 18:07:29 by jezuzgirl

free debt analysis and custom recommendations!

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