Is there any way to pay off debt slowly?

[quote=sue]I would not be able to pay off the debt in just 3 years as most consolidation agencies prefer. Is there any way to pay off debt more slowly? I own 40k and own a home but have been denied home equity loans due to bad credit. Since I have to pay a mortgage, I can't pay $1,000 a month to pay off my debt as well. I was hoping to stretch out the payments a bit more. Any advice?[/quote]


Just declare bankruptcy, DC will screw your credit up, and you will be screwed unti you pay it off!

CCCS companies usually have a 2 - 5 year payment plan, and if you go through them it will look just like bankruptcy 13 (repayment wage earner plan). And all the creditors would add a note to your credit file showing you in credit counseling until you would be paid off. Plus you have to research very careful who you go with make sure that they succeeded in lowing interest on ALL accounts, and that they pay all of your creditors when THEY ARE DUE! Otherwise they can make costly mistakes that kick your accounts back up on interest rates.

Check with the Better Business Bureau before entering such an agreement.

The nice thing about credit counseling is that if you succeed and the accounts are all current when you exit the program, then the CCCS notation gets removed and all accounts show paid, but they all will have been closed before you completed the program, you could not save them to remain open.

If you are already behind on payments, then CCCS is not the way to go, cause the accounts will still charge off, unless outstanding balance are brought current first.

If you consider bankruptcy I have recently added post to the bankruptcy section for each state that you can review what exemptions are allowed on property owned, and figure if chapter 13 or chapter 7 is best for you. But I suggest if you are going to file bankruptcy that you do it in like a quick manner, because new bankruptcy laws were just passed that will make it harder for consumers to seek relief from debt.

If you know that is the way that you will go, then cease making payments on everything to scrap up the court cost and lawyer fees just as soon as possible.

You will need to obtain all 3 of your credit reports to, so the attorney can know who all to notify of the bankruptcy to include them.

Best of wishes with this,