How do I choose the best way to get out of debt?
Date: Thu, 07/19/2007 - 21:08
Well filing chapter 7 got us out of all of our debt with the exception of our cars, house and my student loan. From 2000 through the early part of 2005 we were doing great my truck had one more year of payments and if would be mine, that would mean an extra $325.00 a month and we had no credit card debt to speak of. Well that was all about to change for the worse, you see I got to thinking we really have no retirement and of course the real estate market was booming all across the country, I thought great I will get into this stuff make millions and quit my day job in a year. Of course I was in love with the idea of being rich and not actually having to work to get there. What you actually have to work if you want to succeed at this real estate thing ( YES DUMBASS) well I didn’t put a lot of effort into it and I bought a apartment complex form a buddy of mine who figured he would help me out by buying an apartment complex from him and taking over managing that property as well as one other one that I bought form him at the same time and I also had a rehab that I was working on with him.
I am sure you can tell where this is going, the apartment complex doesn’t cash flow very much, the rehab went over budget to the point where the $35,000.00 in profit turned into about $6,000.00 and of-course the money that I had in expenses was split between a mortgage that I took out on my dads house and I used his savings for the rest of it. This would have been fine but then I got fed up with my boss at my current job and then when I did sell the house instead of paying off the debt on my Dad’s house and replenishing his savings account of course I thought I know what I am doing and kept it in my own accounts and then pissed that away. Now I have my Dad who is 89 in debt to the tune of $18,000.00 as well as a loan that I took out in my Wife and Dad’s name for $20,000.00 I owe $15,000.00 on and my Wife’s credit card at $8,000.00 so all toll between all of it we are about $38,000.00 in debt more than ever before and all because I had to play Donald Trump.
I have been looking into some of these credit card relief programs not consumer credit counseling but I just don’t know the best road to take. I don’t think we can get a second on the house just because my credit score is around 610 and my Wife’s is around 575. I can’t file bankruptcy again and I don’t want to. I have thought about approaching each company and trying to negotiate my own settlement with them so that I can get my payment and interest down to a rate where the payments on the card would actually go to reducing the debt rather than just paying the interest on the cards. What is the best way to cure this and do away with credit forever, I have heard that the credit card relief programs wreck your credit for a while and do more damage. At this point I am working 80 hours a week just to make payments on the debt and I am not getting a head, I can’t keep this up for the rest of my life, I have no time to enjoy my family, I just need some suggestions on a good road to take. Any advice?
At the credit union I bank at, and have many loans through, they
At the credit union I bank at, and have many loans through, they have told us that if you go into credit counseling, they look at that as a plus. You knew you were in trouble and you wanted to still make payments and you couldn't do it without help. They even advertise one on their web page. So Some companies look at it as bad, but then some look at it as good. Then as soon as you finish the program your credit score goes up and you get even more offers (like you'd take those anyway, because you learned the hard way)
So for me I would try and contact the companies yourself and if you cannot get anywhere on that then I would seek help from somewhere else. It only looks bad for awhile. But make sure you check and double check the company you are looking into useing. Some are not very good and just take your money and run. I asked my states DFI for a list of companies that are licensed in my state. Then I contacted the DFI to see if there were any complaints filed against the company I was thinking about useing, then I checked the BBB website to see if they had any complaints filed. You can never be too careful when it comes to handing something like this over to someone you don't even know.
I wish you well and please keep us updated on how things are going for you and what you decided to do. There are some in here that have used conslidation companies and can give you a better heads up on how they work and how they affect you score. Sorry I couldn't be of more help.
If i'm NOT mistaken, first of all the credit card co's will not
If i'm NOT mistaken, first of all the credit card co's will not work with u on lowering interest and stopping fees until ur in default with them... sounds kinda stupid to me but that's waht i've been told. Also, credit counseling can't hurt ur credit much more than it already is right?? I know hubby got into one a few years back for medical bills and after a few short months it actually helped his credit score! It showed as paying on time after about 6 months or so...
The way i look at it... what do u have to loose?
And as far as ur saying... screw me once... that's MINE TOO! lol
Good Luck and keep us updated,
Ang
Can you let us know what credit cards you and your wife are carr
Can you let us know what credit cards you and your wife are carrying? I may be able to pm you some information.
Debt releif companies
I was in touch with two debit companies today one was Bella Financial out of Dallas TX, the other was Superior Debt Services in OK. Superior Debt Services offered credit repair help after you pay off your debt. Both companies charged 15% of the total debt as their fee and they said they could reduce my debt to only 40% of what I owe.
Have you all heard of either of these companies and if so what do you think, they both invited me to look at their links on the BBB.