Consumer Credit

Question: What is the best method for consumer credit card debt relief?

(Posted by: Kat on 2009-07-04 06:35:10)

We started a program with & quot;Consumer Credit Counselors& quot; This progarm has us pay the Consumer Credit Counselors, then they pay the credit cards every month. All they do is lower some of the interest rates. They don& #039;t negotiate amount owed. The payments are too high for us, so we looked into other alternatives. We found one company that will do it differently for less. They have you pay into an escrow account, and they pay off each credit card individually. They say they negotiate lower balances and interest rates. The payment would be lower and the payoff time cut in half. Does anyone know of any reason we shouldn& #039;t do this? Are there any other better ways? WHAT IS THE BEST WAY TO GET CONSUMER DEBT RELIEF with no loans?

Posted by: Jeffery S on 2009-07-04, 06:49:14

I guess you 're with one of the credit repair companies. They are not actually consolidating your credit card debts, rather they are letting you go through a debt settlement program. Over here, you don 't actually need to pay-off your entire debt. You 're actually paying-off a lessened amount. Did they already pay-off the credit card you had the highest outstanding? Ideally, they should first go after this account. Also, check out if they have offered you a specified period within which all your debts would be settled.

Posted by: ibu guru on 2009-07-04, 06:52:53

Many of "debt relief " outfits are outright scams. And you know they have to be making money somewhere to stay in business, and the only way to make money is off you. "Debt relief " is a con game. You need to pay off your debts. This is a debt-collapse depression, not a recession. Too many people, like you, took on too much debt! So did the US and other governments. The depression will last until all the debts are paid and cleared out. So each person who does not pay off their debt contributes to the depth and length of this depression. Paying off your bills matters -- to you and everyone else around you. You need to pay off debt first! Slash your living expenses. Eliminate cable TV, be more energy efficient to reduce utility bills, live in a cheaper apartment, don 't buy clothes, slash the grocery bill. You cannot afford a McD 's burger or Starbucks coffee until you pay what you owe. BTW, by cutting your interest rate, CCC has saved you a ton of money in interest and fees and enabled you to pay off your debt faster. More of your money is going to principal and less to interest.

Posted by: Prove It Or Lose It! on 2009-07-04, 07:13:30

Ah, the recession is all your fault! Look what you 've done to our country ;-) I 'm kidding of course. I am so sick of seeing people in this forum blame the recession on people who come here for help. What an ignorant thing to say--that the current economic situation is due solely to people getting into debt and not paying their bills. Newsflash: Debt has been around in copious amounts for decades! It is so much more complex than that, and most of the people who couldn 't/ can 't pay off their debts lost their jobs and/ or couldn 't keep up thanks to skyrocketing costs of living and stagnant wages. So ignore anyone who nags you about this; I guess it just makes them feel better about themselves to look down on others. OK, off my soapbox now :-) You have to be really, really careful with these debt relief companies as a lot of them are scams. Don 't get me wrong--you shouldn 't expect to get services like this for free, they have to make money like anyone else. And even if it costs more over the long run, it might be worth it to save you from bankruptcy. *However, many of these companies are not honest about what they will charge you for their services, and that 's where the problem lies.* Also, many debt settlement companies let your accounts get seriously delinquent before they try to settle. They pretty much have to do that; most creditors won 't consider settling until your account is way, way behind. So your credit gets trashed in order for you to settle. The debt settlement companies can 't help if creditors won 't consider settling until that point....The problem again, is when they don 't tell you that this is going to happen, and unsuspecting people get their credit ruined. So again, be careful. Try nfcc.org if you haven 't already and/ or check debt relief companies out with the Better Business Bureau before hiring them (and even then, be careful). And of course, if you can 't find a solution, there is always bankruptcy as a last resort :\

Posted by: Vaughn on 2009-07-04, 07:42:55

The best answer is what most people over look. Debt can be eliminated. I 'm neither referring to consolidating, loans nor bankruptcy. Eliminated meaning you 'll pay nothing. How? Simple! In one word "grants ". There are thousands of grants available for everything in life. For more information and free information log on to milin4.webs.com.

Posted by: MK on 2009-07-06, 19:48:16

I am not saying that debt settlement/ negotiation is the wrong way to go. However, it will damage your credit further. If you choose to settle on your debts, you can do this without paying enormous fees to a debt settlement company. Keep in mind that any forgiven debt of $600 or more is automatically reported to the IRS, in which you would owe taxes on it as a form of income. If you can continue to make the payments on your current plan, then that is likely the best option for you. If you are having trouble, give your credit counselor a call to discuss possible changes to your account.