Internet's first get-out-of-debt community - 134,000 members

Posted: Mon May 05, 2008 2:56 pm Subject: Trying to get out of Debt

Hello,

I am 28yrs old with approx $36,000 in credit card debt. My first child is due in August and ever since finding out I have been working on paying off the debt and getting to a point where I can better provider for my child.

I have contacted a few (and been contacted by many) debt settlement groups. It does not appear that they are right for me, they are willing to work with me, however I don't understand why they would have me pay into an escrow account an amount higher than my minimum payments, and then ask me to 'swear' to the fact that I can no longer afford the minimum payments. This seriously worries me as I am not interested in being sued.

I started in December with about $40,000 worth of debt, so I am able to bring the balance down, just slowly.

I found this forum and felt I should keep it in my tool box as there seems to be allot of knowledge available here.

Posted: Mon May 05, 2008 3:14 pm Subject:

Welcome to the Community Laughing

You are right, there is a wealth of info here and from others who have gone through what you have.

Will any of your credit cards drop or lower your interest so you can pay them off sooner? I have had some work with me and I got in their hardship program and paid off several that way.

Also, what I did was, I took my lowest balance cc and started paying more each month until I got it paid off. Then, I took that payment and put it towards my next lowest, and so on. I didn't have as much debt as you, so I don't know if this is an option for you.

You can do consolidation, settlement, etc., but there are drawbacks to them, and it will affect your credit. If you don't mind this, try the free consultation and see what options they may have. With this amount of debt, at some point you may have to look into settling some of your debts for less than owed, but you don't have to do that at this moment, until you decide what is best for you.

Before going with any company, do your homework and check them out, also, ask alot of questions, such as when do they pay creditors, and will your creditors work with them.

Feel free to sak questions, we are here to help and guide you through the proces.KAren

Posted: Mon May 05, 2008 4:30 pm Subject:

First off Congratz on the new baby!! How exciting Very Happy

And you are right for coming here, you will find much needed info and really awesome poeple who make you feel safe and welcome. Enjoy your stay and good luck

Posted: Tue May 06, 2008 3:26 pm Subject: How about this?

Hey Hey... Congratulations on the new baby.

I was in your shoes about 5 years ago, before having a better idea of getting out of debt. It does not happen over night. It took me 3 and a half years to pay off my 42,000 worth of debt while only making 30K a year.

It seems like you can afford making payments, even though it hurts the pocket. Have you considered living on an average daily balance system? If you have a solid plan to pay off your debts, and you have steady income, you may be able to pull it off. You can use the banks money to pay everything off if you qualify. This way, you are not limited to your own cash flow, and you will have a much better idea on your finances.

It does not work for everyone, but it may work for you. It worked for me. I had to give up a little bit like my daily lunch at subway for packing my own and planning my trips with my car to conserve gas, but it can be done. Also, do you own have a house? If so, you are more of a better canidate for this.

Posted: Tue May 06, 2008 3:31 pm Subject:

This last poster appears to be advertising his servies. I don't know anything about his services, except to be carefull.

And be especially careful of anyone wanting you to secure unsecure debt with secure debt, like your home...karen

Posted: Tue May 06, 2008 4:02 pm Subject:

Actually Karen, its quite the opposite. Its like pay off your secured debt with unsecured debt, earning equity and speeding up the amortization schedule.

I'm sorry for the confusion, the misunderstanding, and the new way of thinking. I am not a lender, not a debt consolidator, or a banker...

I am know as a financial adviser, I just give advise on how to pay liabilities and debts off faster. If you can keep current, why not get rid of them faster. Cash only limits people on what they can do. If you can understand it, using the banks money to your advantage would save your more money in interest on amortized loans then you pay on actually using the money.

I feel like I am the 12 juror on 12 angry men, I may have another way of looking at it, but everyone is already set in their ways. I really do not intend to advertise on your forums because its not what it is intended for. I just do not want to discuss it fully because people who take the idea without understand it would be in more financial hardship. If they want, they need an adviser to help them.

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 134,000 members

Trying to get out of Debt

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Also See

Recent Forum Discussions

Recent Blog Post