Debt Consolidator

Archive for November, 2009

Is there any way to take out a personal loan to help consolidate debt when a person has a bad credit score?

See a Credit Counselor who will show you the way to be debt-free

Im trying to find a debt consolidattion company for my mom. I looked online but I cant tell who is real and who is fake. She doesnt have credit card debt just old bills.

Greenpath/accel credit services. I had them for about a year and i love them. They are very helpful and do not scam you. Go to greenpath.com for more info….Hope i helped.

Seeing a friend fall deep in debt in no time, I like to help him, get an idea of what his options are – Bankruptcy or Settlement.

He made huge debt (over 50 thousand) to 4 major credit cards while in New Jersey.

Since Feb 2006, he has no job, no nothing … literally nothing, stopped paying, moved out of state, no contact with creditors or response to court orders. (A lot happened with other cards). Now,

Card-1:
With Original Creditor
Principal 10K.
With penalties 15K

Card-2
Been sold 3 times and with an outside recovery company.
Principal 19K.
With penalties 27K.

QUESTIONS:

We understand Bankruptcy may be best option… its apparent it’s quite easy in his case. BUT please advice on the below.

1) In this scenario, how much these agencies would agree for one time payment?

2) How should we proceed OR should we hire an attorney to do this work for us?

3) Are there any better options such as consolidating?

4) Plz recommend attorneys, consolidators, any thing.

Big Thanks.

Regarding how much the agencies would agree to a one time (reduced amount) payment depends on a few factors – age of the accounts, if they had sued and won (you had mentioned court), etc.

If the accounts are fairly recent and/or they received default judgments on them, they probably will not discount the amount much.

If the accounts are pretty old since he defaulted and there are no judgments, they may work with him on a much lesser amount.
If the accounts are past the collecting SOL with no judgments, they would probably be more inclined to settle for a greatly reduced amount since the only way they could "legally" get paid on the accounts is with his offer to pay. Or, if they are past the collecting SOL and there is no judgments, he has a legal right to send them a SOL letter informing them the account(s) are no longer legally collectible and he has the legal right to not pay.

He needs to order his credit reports to see who/what is reporting.
He also needs to contact the court clerks in "every" county/city he has lived in since his "very first" default and ask if there is anything filed in his name.

If he decides to try to work with them, he should first start by sending validation letters. If/when they properly validate he might send them his offer along with the requests that they consider it as "payment in full" and that they will delete what they have placed on his reports.

If he is considering bankruptcy (BK), he might speak to a BK lawyer.

You/he might also click on my profile and click on the last link I have listed. Do some reading in both the credit forum and the BK forum. (It is a "totally free" site with a great deal of info on it)
He will be able to get an idea of what it takes to try and deal with the creditors or what is involved in filing BK and would probably be able to decide if he would want to file on his own or spend the money to have a lawyer file for him.

Filing BK on ones own is not for everyone. If he reads through the forum and has any doubts about being able to handle it, he should get a lawyer

I am looking for the best debt consolidation company to help get me out of the mess I am in. Suggestions?

They are ALL SCAMS. Don’t get ripped off.

Go see a local non-profit debt counselor. They will elp you with a budget and help you work with the creditors. No fast easy fixed.

I have to payoff bad credit loans, personal loans, unsecured loans. Please tell me name of best site to consolidate all my debt loans.

I suggest u to go http://www.adverse-credit-debt-consolidation.co.uk and take debt consolidation loan to become debt free

I’m wondering if I should consolidate debt, the reason I’m considering this is to get a loan to finish school.
Would this work?
The debt is around 10,000 dollars and right now the vehicle I use would work better with a new engine, which I would need for school. Just in general need a loan for school expenses.
I would like the educational loan as soon as possible. Next Semester .
Might this be the right way to go about doing this?

I think you should consider "cost vs. benefit" here. To properly advise you I would think about what you are paying now on a monthly basis vs. what you would be paying monthly if you consolidated. If consolidating is going to cost you a lot more long-term it may not be worth it. In other words, avoid making a short-term debt a long-term one. I do debt consolidation mortgage loans but I still dont regularly advocate using them to pay small things like dept. store credit cards…However, If you can obtain a siginificant interest savings by consolidating and perhaps make the vehicle you have currently last longer you may have 2 benefits….Particularly, if you would potentially have to face financing another vehicle in the short term. Consider all options for educational loans & look at the interest rates closely and compare the numbers before deciding.

I have about 4100.00 dollars in debt and I want to try to pay it off in the next few years. I looked at that Care one company, sounds like i’ll be paying them an extra 1700.00 dollars in fees and all this intrest which I think is ridiculous. Or do all companies work like that? Please tell me some good companies I can work with, thanks!

Don’t work with consolidation companies–they are a scam. They do make a lot of money off you. They charge you the start up fee, you make monthly payments to them. They do not make monthly payments to your creditors. Your accounts continue to go delinquent. You have no idea this is going on because the consolidators have sent cease and desist letters to your creditors. They will start paying your creditors once they have enough money to settle, generally about 30% settlements. Any money left they keep–alot of creditors no longer work with them because they are so shady. They also don’t advise you that in doing the settlement, you will be paying taxes on the amount not paid. Meaning that if you have $4100 in debt, the company negotiates for 30% settlement, you will not have paid of $2870. Of that amount anything over $599 is reported to IRS, they consider that income and you receive a 1099 and have to pay taxes on $2271. It also affects your credit. While you are paying them and they are not paying your creditor, your account charges off. When they do the settlement, it is reported to the credit bureau as a settlement in full.

Better to contact the creditor, negotiate payments with them. They will stop fees for the most part and lower your payments. Good Luck***

I have two credit cards that I have used over 5 years ago and never paid back. The total of the two cards FIVE YEARS AGO was $1000. Of course, by now, it should be close to $3000 because of all the interests.

What does debt consolidation do? More importantly, can it REALLY remove or reduce the interest that built up over the last 5 years?

When doing a search for debt consolidation services, I get THOUSANDS of results. Which debt consolidation services are better?

Detailed answers would be appreciated.
Update: Am I correct to assume that if I leave the debt as it is, I can have it completely wiped off my credit card two years from now as if it never happened?

Hi, Jimmy:

First, I already answered a related question, so I’ve copied that answer below after the dashes.

If your number one objective is to simply improve your credit, you could just wait it out for another 2 years until the debt is 7 years old. You can then ask for it to be removed from your credit report. If this is your objective, then don’t pay the debt. Records on your credit report are good from 7 years of last transaction so any payments or charges you make resets that 7-year clock.

Personally, I’ve never used a debt consolidation company because I’ve felt capable of trying the same tactics myself. Granted, these companies are professionals and may get special "deals" and privileges that I wouldn’t get, but I’ve still been pretty pleased with my own results.

Before using a debt consolidation company, I recommend trying your own hand at it. Contact your creditors. Before you do, determine how much you can afford to pay in a monthly payment. Even better, if you have some money saved up as a lump sum, you can try to pay them off in a couple of chunks. The more money you can give them at once, the better your negotiating power.

If you’re in collections, ask the creditors by how much they’ll reduce the total amount owed if you pay now/in 30 days/in 60 days/within a year.

If you’re not in collections yet, ask the creditors how much they’ll reduce your total interest. Some companies (e.g. Discover used to do this) will even suspend interest entirely while you’re in re-payment. Of course, you can’t use the credit card during that time, but you’re saving money and salvaging your credit.

Good luck!
———————–
There are several benefits to credit card consolidation:
- Convenience (only one or two payments)
- Easier to manage (less likely to forget a bill!)
- Possibly a lower combined interest rate

Generally, when companies help you by consolidating your credit cards, they contact the credit card companies on your behalf and try to negotiate a lower interest rate (you can do this on your own, by the way). Then, the companies can take one of several methods for that single consolidated payment. Options include…
- Financing your debt themselves and then THEY pay your creditors
- Helping you find a financier to consolidate your debt
- Having you roll all of your debt under one of your existing accounts and pay off the others

As such, credit card consolidation does not affect your credit rating. In fact, the results of consolidation are often positive simply because it’s easier to manage and you may pay less interest.

All this being said, I’ve never used a consolidation agency because I never wanted to pay the fees. Instead, I contacted my creditors myself and asked for the best possible interest rate they could give me, and asked what kind of arrangements I could make to manage debt. In general, they all worked with me.

By the way, here’s one thing to consider when paying off your debt: Bad credit falls off your credit report 7-10 years after your last transaction. So, if you have a liability that is 6 years and 10 months old, carefully consider whether you pay it off or not. If you touch that account at all, even if it’s to pay it off, suddenly that 7-year period is renewed. So, the choice you have to make is: Do you want something that was bad and is now paid on your credit report for another 7 years, or do you just want it gone entirely?

There are some ethical questions there, too (e.g. if the debt was yours and you were above 18 at the time, you should pay the debt to be ethical). These are questions that only you can answer. But, when working with a consolidation company, make sure they only consolidate the accounts you want them to touch.

Good luck.

I want to renegotiate my debt, and I have seen financial debt free asistant programs on TV ads …are they any good?

Choosing a credit repair service is an extremely important decision. Choosing the wrong service can mean you won’t receive the best possible results at best and at worst it may result in a fine or prison sentence for you. In choosing a credit repair service its important to know what to look for as well as what to avoid. This article will provide a brief overview of these characteristics to help you make a wise and informed decision.

Also, a good resource is…

http://debt.123thebest.info/credit_card.html

Good Luck.

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