Need help consolidating my $25,000 credit card bills

In a credit settlement, you discontinue payments to your creditors and send them to the settlement company. They keep your payments until you have enough to settle a specific account. Example - You owe Credit Card Company A $3000, they keep your money until you have $1500 and they offer that company $1500 to settle your account. They do the same with each creditor on your list. The end result is pretty good, but your credit is trashed in the mean time. That was far too scary for me!

We went with consolidation. In a consolidation, you pay the consolidation company and they pay the creditors each month. They negotiate lower interest rates, end late and over the limit fees, etc. For $15,000 our monthly payment is around $454. According to some people consolidation looks bad on your credit score, but the way I look at it is... My credit was pretty trashed anyway and now I will be debt free in three years.

After everything is paid, you credit should look great.

Quote:

Hi

Welcome to the forums.

If the monthly payments are irregular, you can't stop the financial charges that keep adding on your total debt amount. It becomes necessary to take some professional help when you are facing difficulties in negotiating with your creditors.

After you have chosen the consolidation program, all your bills will be combined into one amount and you will have to draw only one check each month.

The counselor will actively negotiate on your accounts with your lenders. He will be successful in getting the total debt amount reduced which will eliminate all the financial charges and other late fees.

Please understand the features of the consolidation as well as the settlement program in the thread given below:

http://forums.debtcc.com/forums/comparison.html

I will suggest you for a consolidation program in comparison to a settlement. Although it will appear in your file as long as you are in the program, but it will keep improving from the present situation. Moreover, the lenders will appreciate your involvement in the program. They will realize that you have taken the responsibility to pay off the past debt.

Once you have paid off everything, you will have a renewed financial worthiness free from all debts. You will be open to the best deals from your lenders as there will be a rise in the credit scores.

You need to have a very sound, trustworthy and long lasting relationship with your bank in order to get some loan without keeping anything as collateral. If you are asked to pledge something against the loan, you will surely get the best deals as because of your good credit ratings after the completion of the consolidation program.

Take a free counseling in this website and discuss this matter elaborately with your counselor. He will suggest you better ways about your repayment process and help you in achieving a debt free life.

Regards
Roxette

bills,

Don't go for loans any more. It seems that you are already in debts badly. Another loan of $25,000 will add more loads on your burden, nothing else. Moreover, with your current financial state, it will be hard to get a loan without collaterals.

I would go for consolidation. It brings all your unsecured debts under one place. Generally the counselor, who works in the program, negotiates with your creditors so that they agree to restructure the loans at lower amount with reduced rates of interest. This way you can repay all your debts within a short while and monthly installments do not impart so much stress on your pocket.

You can go through the counseling session offered with this site. It's free :)

I heard that if you go through consolidation, there will always be a mark on your credit report AFTER you've paid off the debt, something called a TPA...is there a way to get that off? how will that affect me afterward if I was to try and get a loan for a house or a car?

Hi

Welcome back.

There won't be any negative impact on taking the consolidation program in the long run. Once you are enrolled in the program, your CR will show it as long as you are in it. All the accounts that have been included in the program will either be closed or frozen. This is done with a good intention so that you don't add further debt towards that account.

During the program, the lenders will view your file with a positive view. It will show that you have taken the responsibility to clear off the past debt and want to regain your financial worthiness. But, it is the sole wish of the creditor if he wants to extend credit to you or not.

This program will be removed from your file after you have completed it. There won't be a permanent stay of this program if you opt to choose it.

If the status of the account is shown as TPA, it gives a good impression about your file. It denotes that you have paid the account and the status is updated as 'Total Paid as Agreed' by your creditors. 'Settled' is a derogatory remark and should be avoided at all cases. This remark is often put on the accounts after a settlement program is chosen.

Please let us know if you have further queries. Do proper researches before you enter into a financial deal. It's all about your credit report that stands as the most important financial document.

Regards
Roxette