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

My wife and I have 36k in cc debt.
We are having problems making the monthly payments. We have called several credit counseling places, but they all seem to hardly change the monthly payment amount so we haven't signed up yet? Any advice?

Posted: Wed Jun 18, 2008 8:50 pm Subject:

Since you signed up and became a member you are entitled to a free debt counsult session on here They will be able to provide you with some assistance on where to go next. Just remember before you hire a company that you check them out through the BBB to find out have to say about them.

Posted: Wed Jun 18, 2008 9:16 pm Subject:

Dear Qm,

Welcome to the community. Smile

When you are in a debt situation like this, then you have many debt relief programs in front of you. Which solution you will select entirely depends on the gravity of the problem you are in. For your convenience let me give an overview of all possible solutions that you can look for: -

• Self Repayment Plan is the best one where you can reduce your outstanding debt by yourself. It involves correct self assessment of your financial status, formulation of an effective plan for paying-off your debt and consequent execution of the same. In this process you don’t have to pay any fees to any third party. In addition, it has highly positive effect on your credit score.

• [url=http://www.debtconsolidationcare.com/debt-management.html]deb t management Program (dmp)[/url] involves a credit counseling/law firm who will help you to pay-off your debt by reducing your apr and consequently lower your monthly payment. In this program, you don’t require paying your creditors but to the DMP company you have registered with. Moreover, it will not affect your credit score adversely and your score will start to improve once you payoff all your debts. But please make it sure that you don't miss or delay any of the payments. Otherwise, your score will get negatively affected.

•debt consolidation Loan – It is a personal loan which will help you to payoff your multiple loans through a single loan.

I think Debt Management Program (DMP) will be the best option for you in your current position.

You can also get Free [url=http://www.debtconsolidationcare.com/]debt counseling[/url] from our community experts.

Regards,

Phoenix

Posted: Wed Jun 18, 2008 10:16 pm Subject:

Managing your debts by yourself is certainly the best idea; however, it requires an enormous amount of discipline from the debtor. People often can't resist the temptation and fail to live within the strict budget. Hence, they have to seek the refuge of the debt counselling companies. But reducing your debt burden isn't as hard as it sounds.

try to draw a monthly budget for the household expenses.
put aside an amount to pay the high interest rate credit cards.
Prioritize your debts. List your debts with descending importance.
Consolidate the out-standings of other high interest CC’s to the one with lowest interest rate.
Try negotiating the rates with the creditors. Explain to them that you’re facing problem in making the payments, however, you can stay current with the payments only if they reduce the rates. Many lenders will co-operate with you quite willingly.
You may start shopping for a credit card with lower rate of interest and pay-off the older one’s with the new one.

The debt management plans will affect your credit score. Moreover, it’ll add to your budget as you have to pay the fees of the counseling company.

However, try to shop around little more and also don’t forget to look-up the status of the counseling farm with the BBB site. There are many debt management farms, who’re simply scams.

Best of luck!!

Posted: Thu Jun 19, 2008 8:10 am Subject:

gm319 ,it sounds like you would be a very good candidate for a debt settlement program. credit counseling programs are great if you can afford the payment " which is usually 3%-4% of the debt you enroll "and since you mentioned you are overextended those programs won`t help because you can`t afford the payment.

Debt settlement is an aggressive hardship program and best for people that don't qualify for debt management "aka. credit counseling", can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy.

Debt Settlement can get you a payment around half or what you are paying now and have you out of debt in 36 months or less. A good settlement company can usually settle your debts for around 40%-50% of what you owe. Be aware there are a lot of crooked settlement companys out there so be sure to look any company up on the BBB to make sure they have a good track record. Also its not a bad idea to also make sure they are members of TASC or USOBA. Hope this helps. Good Luck Very Happy

ps. remember to take advantage of the free counseling . 800-601-1579

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