My name is Paolo and I just joined the forum. I wanted to ask you what is the best way to deal with the debt I have (all credit cards).
Here's some background: I started a business a few years ago and did not receive a salary for a couple years, instead, I just put my living expenses on my cards - that is how I got the debt in the first place.
Now my business is starting to generate some income, which is enough to cover my living expenses plus about an extra $2000 per month (which I am now using to pay off the debt, starting from the higher interest credit card).
Here's some more information about the debt and my credit.
- Total Debt $57,000
- Average Interest Rate 18% (16k are at over 23% interest)
- Credit Score 560 (ONLY due to high utilization, and perhaps short history)
I made some calculations and it looks like I can pay off this debt in about 2 years using the extra $2000/mo, however, the interest is SUPER high and I am wondering if there is any better way to plan this.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.