Credit And Debt Counseling Auto Loans

She has over $25,000 of debt and has trouble making the minimum payments. We do not own a home and pay rent and auto loan monthly as well as the usual expenses. I looked at debt consolidation loans, and debt counseling sites and there is so much conflicting information. Anyone who has gone through the same or works in the field any advice?

We are in the same situation. Married and new kid with lots of bills from remodel, hospital, taxes etc. We are close to 30,000. I called all my credit card company and got the interest rate lowered or transfered to a fixed rate. I set up auto pay so don't miss any payments and cut up those cards. I got 3 cards one fixed at 3.9, 4.9, and 6.9. We are paying as much as we can on the 6.9 and then 4.9. We have a set amount so we make min payments on the first two till we pay the others off. Set up a BUDGET and stick to it. If you call them ask about getting a fixed locked in low rate. If they don't budge call again or ask for manager.

Tell them your in financial bind and they will work with you and set up a lower monthly payment. Also check the interest rates she has and what penalty she is paying. Few phone calls and you can lock in your rate. Then DON'T USE THOSE CARDS.

It is slow and painful but you will see the progress.

2007-02-26 10:47:17 by panthergoddess85

www.doublegcredit.net http rss-feed.s3.amazonaws.com Since 2000, Double G Credit Repair has specialized in credit restoration. We qualify our ...

Need financial advice from a pro ... if you're out there. My credit is screwed, my current financial situation sucks and I'm not sure what to do. I am married w/ two kids and only one income....low for a household of four might I add. I have lots of old unpaid debt (8-10 years old) and recently (2 yrs ago) I attempted to re-establish my credit w/ a few credit cards and failed again when my car broke down and had to buy another. The only way I could afford the new car payment was by NOT paying my newer credit cards. So, my bad credit turned worse. Now, I'm still struggling to feed my family, pay my living expenses and auto loans (I have two auto loans w/ high interest rates). I live pay check to pay check and even take pay day advances on the regular. As you can tell...I need help, but I can not loose my cars or home (I rent) for that matter. I have always intended to repay my debt, even the old stuff, but my financial situation has not gotten any better. What is the best option for me that will enable me to pay all my debt, lower my car loan payments, keep my carS and re-establish my credit? Bankruptcy, Credit counseling, or is there something else out there?

I'm not a pro but my husband and I were in the same situation two years ago. One income, one child and a baby on the way. We only had one large credit debt but it was massive. We turned to a debt settlement company. It still hurts your credit but they help you take all you debt and get that debt reduced big time. They take a fee but for us it was so worth it. Once you begin you stop talking to the companies your in debt with and the debt consolidator is the one that deals with them. You open savings account and put in a value that you and the consolidator agree on each month. They take out a percentage in the first few months until their fee is paid. But they get you on track with these monthly payment until you have a lump sum to pay the creditor. While your in the process the creditors are no longer allowed to contact you, only the debt settlement company. The debt settlement company will be able to lessen you debt. For us they reduce our debt almost in half. That was thousands of dollars. After you pay the lump sum you will get paperwork from both the creditor and the settlement companies that states your debt was paid in full. That year or the next you receive a 1099-C cancellation of debt tax form from your creditor or creditors. You will have to put that as income on your taxes, unless you can prove insolvency. But by the sound of it you can, then you wont have to report it as income on your taxes, but you will have to prove to the irs you were insolvent(we called the irs tax hotline to help us prove it, don't take it to a regular tax company). Again I'm not an expert but I have been there, and our life changed for the better once we were debt free. The debt consolidator we used was Debt Settlement USA.

2008-11-23 00:31:45 by sickofants

Price: $6.99

The person who came to me for help: $40K income, healthy, in debt US$140K (yes, one hundred forty thousand dollars) ($60K student loans in forbearance, $7K auto loan, the rest unsecured debt: $50K is maxed out credit card debt, mostly at default 30+% rates and the rest is loans from friends. About $1K in tax liability.). Some debts are freshly (30 - 60 days) delinquent, but none has gone to collections yet. No previous BK, charge-offs, collections or judgments. All 3 Credit reports have no serious errors, FICO scores unknown. Person is motivated, has already shown me recent credit reports and bills, cut up credit cards, developed detailed list of assets (car + $3K in illiquid assets + $1K cash) and liabilities, and is writing a monthly budget.

What do you advise?

Is the Consumer Credit Counseling Service Debt Management Program the best solution? What are your successes or failures with the CCCS DMP? Costs and benefits? Please answer the questions I've asked. Thanks.

I have never had a client of mine successfully complete one of the debt consolidation programs. I have seen these companies take money from people, not negotiate debts for them, and generally ignore the consumer when they get sued on the bad debts. These debt management programs are the same thing as filing a Chapter 13 bankruptcy, except with bankruptcy you have laws protecting you against creditors and you can be sure you aren't throwing your money away. You have no protection when dealing with debt consolidation companies. It's a huge risk.

Since this person has a regular income, he/she is a good candidate for Chapter 13 bankruptcy. After 3-5 years paying into the Chapter 13 plan, the unpaid unsecured debt will be legally discharged. It will be no harder on their credit reports and score than negotiating debt through a debt relief agency.

2007-05-28 06:39:01 by VT

My husband and I are at the beginning stages of considering Chapter 13 bankruptcy, but are really confused about what will happen.

We owe about $45,000 in credit card debt, $25,000 in auto loans, and $45,000 in student loan debt. We are upside down on our house, about $40,000 under what we bought it for 2 years ago. The loan amount was $1800 per month, but due to increases in property taxes the monthly amount is now $2150.

Last year we signed up for Consumer Credit Counseling and was paying our creditors on time. Money was tight but we were making payments. However, when our house payment went up we had to start choosing which bills to pay. My husband cannot get more overtime and I am facing possible work furlough.

We withdrew from the CCCS program and have not paid our credit cards in about 4 months. We contacted the companies to attempt settle the debt. What are the odds that they will settle with us? If not, are we eligible for Ch. 13, and if so, what will happen in that process? Do all our debts go away or will we have to do a payment plan--and is it for the full amount or a reduced amount? Will we be able to keep our house, car, etc?

Thanks for any help, it is appreciated!
I heard there was a difference between Ch 7 and Ch 13, where your debts are forgiven in 7 but not 13. Since my husband and I make over $100K a year I am worried we won't qualify for 7.

If you are determined to avoid bankruptcy, you may be able to get help with your mortgage from the federal government. If your mortgage payments were manageable, you could possibly reinstate your debt management plan with Consumer Credit Counseling. Go to www.makehomeaffordable.gov to see if that is a possibility.

If you have given up and ultimately decide on bankruptcy, you may qualify for a Chapter 7 bankruptcy (a complete discharge of qualified debts) if your income is insufficient to pay essential living expenses. Any federal student loans will not be eligible for discharge in any kind of bankruptcy. Also, you will probably lose your home if you choose a Chapter 7.

If your income is greater than the median area average AND you have enough income to pay essential living expenses, you will not qualify for a Chapter 7 bankruptcy. In that case, you can choose a Chapter 13 bankruptcy, which is somewhat similar to a debt management plan. In a Chapter 13 bankruptcy you will be required to pay some or all of your outstanding loans during a five-year repayment period. You can keep your home in a Chapter 13 bankruptcy provided you can maintain the payments within the repayment plan.

It would be best to consult with a bankruptcy attorney for all the details, but keep in mind they will probably encourage you to file bankruptcy because that is how they are compensated. I encourage you to do everything you can to avoid the bankruptcy. You are going to be more financially successful in the long run if you make the sacrifices needed to overcome this financial hardship. You will learn things from this experience that you will not learn from declaring bankruptcy. And, keep in mind that your credit report and credit score will be negatively impacted for ten years if you declare any kind of bankruptcy.

Good luck and best wishes for the future.

2009-04-06 15:54:51 by Tucson Kate

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