New user questions: why not regular consolidation?
Date: Fri, 06/02/2006 - 15:16
I have about 48k in debt, though almost half is fed student loans I'm not worried about. It's the 8k of unsecured loans and credit cards that are stringing me out right now. I'm probably spent HALF of the debt I'm carrying right now.
I almost got trapped in payday loans, but got out relatively unscathed, just a bit poorer.
I went for credit counseling through one of the non-profs that you pay a fee monthly for paying all your bills; they weren't able to really negotiate anything down. I'm still considering that because having 20 some small payments a month means I always miss something, and always get late fees.
I talked to someone from a settlement agency from signing up here. I understand how it works but it just seems so frightening and I'm not positive I'm in the worst situation ever. I'm at the edge.
Are there any companies out there that actually pay your creditors directly but ALSO can negotiate the interest rates down more? The consolidation company I talked to would only save me $100 over Three Years!
Also, anyone have any experience dealing with creditors that have automatic dialers like CIT? I paid a partial payment two days ago and am still on their dial as I owe $90 more. I keep talking to reps there but their system doesn't register it. Do I have any rights?
Hi tiffna26 I believe your prime concern is to become debt fr
Hi tiffna26
I believe your prime concern is to become debt free. Yes, you also have to take care of your credit at the same time. But probably, because you have a large amount of debt, you can try bigger balances to include in the settlement program and smaller balances in the consolidation program.
debt settlement program will reduce the total debt to half the amount. This program will be reflected in your file but your concern to become debt free will also be achieved. Your future lenders will see that you have paid off the accounts instead of leaving it delinquent. You will hold a better position in comparison. The most important thing that boosts your credit is the number of accounts used by you and the payment history. You will definitely like to pay them for retaining better credit. The counselor will negotiate with your lenders for a settlement amount.
A debt consolidation program is ideal for accounts with smaller balances. You get most of the financial charges, late fees eliminated in it. You are offered a reduced amount. Once you have paid off everything, your file improves giving better credit history.
It is your choice to go for any debt management program. Remember, your primary concern should be to become debt free. Look out for some easy debt help
