Debt Relief
Debt Relief questions and answers
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Q: Debt Relief?
I have about $24,000 in debt. Is there any debt relief sites that I can go to and are legit? I'm tired of all the debt and I need help.
A: There should be a non-profit Credit Counseling Services in your area. I can really empathize; mine was as high as $33,000, but thank God, it's gone. I felt like I was fighting all the forces of heaven, hell, and earth all the time.
Q: What does debt relief companies do for you?
How do they proper? Is what they do legal and does it really stop collection calls? What if a person is already in a payment program where they have access to your checking account and you turn your debts over to a debt relief company? What is the procedures. Is using a debt relief really worth it to get out of debt?
A: It depends. Many debt relief companies out there are scam. Even the non profit one. The one I recommend is http://www.loansmarter.com/creditsolution , they are the best in the industry. This year alone they settled $200million in debt and last May they received Ernst & Young awards for their accomplishment.
Q: What are the pros and cons of using debt relief agencies to get rid of debt? What does it do to your credit?
Those debt relief agencies that help you get rid of debt fast tell you to stop paying your bills and instead you pay them. They then use the money you send them to negotiate lower payoffs to your lenders. What are the pros and cons of doing this and how long will it effect my credit score for? Any experience is extrememly welcomed!
A: If you are in a bind try contacting your creditors, many of them have hardship programs they can set you up on. Another option is CCCS, they will contact each of your creditors and submit a proposal which generally lowers your monthly payment and interest rate. I would not go to a Debt Settlement Company or Attorney. I work for a large global bank and we are done dealing with them. We've sent them letters advising them to stop taking on our Customers, and they continue to do so. They brainwash the Customer into thinking they will take care of everything. They tell these people not to answer their phone or open their bills. I know of three global banks that will not deal with them...Citi, GE Money, and Bank of America. Our company has taken a new stance...If we receive documentation from a debt settlement company along with a cease and desist we refer it to our attorney network to file the paperwork in your local court to try to obtain a judgement. So....I wouldn't suggest one of those companies. CCCS or contacting your creditors directly is your best bet.
Q: Anyone have any thoughts on credit counseling or debt relief companies?
I am about 8 grand in debt, and need to pull myself out asap. Anyone have any ideas? Do debt counselors or debt relief companies really help?
A: Don't use them, for one most of them are a scam, for two, if you go into consumer credit card counseling it reports on your credit, and some lenders think negatively of it.
First things first, you obviously need a budget, stick to it, pay off as much as you can off, I'm sure you're getting hit with huge interest rates, you can look into consolidation but, alot of credit card companies offer 0% for the first 12 months, but make sure you know what it is after the 12 months!!!
Other than that budget yourself according to your income and stick to it, most of those companies are scams so stay away if at all possible!
Q: Is California planning to extend the years for the mortgage forgiveness debt relief law?
The California mortgage forgiveness debt relief law is effective immediately. It is similar to federal law, but with important differences.
The California law covers qualified debt forgiven in 2007 and 2008, where as the federal law will soon cover debt forgiven thru 2012.
A: Q, Debt relief is a difficult issue many americans are now experiencing. Every legitamate debt relief service providers will consult with you for free. http://www.debtreliefreview.com Try calling serveral debt relief services and inquire about your questions and compare thier answers. You will be able to tell which ones are providing helpful advice.
Q: What is the best method for consumer credit card debt relief?
We started a program with "Consumer Credit Counselors" 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'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't do this? Are there any other better ways? WHAT IS THE BEST WAY TO GET CONSUMER DEBT RELIEF with no loans?
A: 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.
Q: I currently have a little less than $3800 in debt. What would my best debt relief plan be?
I am looking for possibly a consumer credit counseling or debt relief program. Have any of you used one? Who would you recommend?
Because of this, my credit rating is unbelievable low and taking on a new credit card or debt is not an option.
A: If you simply got a second or third JOB for a year that debt would be gone and you might even have some to SAVE.
Q: Which are the Best Debt relief companies or Non-profit organizations?
Does any one have any experience w/ debt relief.
My sister is in need of some help getting out of her mountains of bills due to a divorce and bad relationship decisions. She does not have the luxury of obtaining a loan to help, due to her terrible credit.
I told her to file for bankruptcy but she wants to avoid that route.
Anyone have experience with this.
Where would she find this consumer proposal?
Is this an attorney?
Or debt relief?
A: A consumer proposal may be a better option - where she will work with a bankruptcy trustee and come to a payment arrangement with the creditors. She will have to make payments but less then paying it all back. She can get a Citi Bank pre-paid credit card to keep building credit at the same time.
Q: What is a good debt relief company?
I just graduated school and racked up $8,000 in credit card debt. Luckily, I avoided the whole student loan mess, but I really need to get control over this lingering debts. I have heard good and bad things about debt relief companies. So i was just wondering is someone could direct me in finding a legit company. Also, any info on debt relief is much appreciated.
A: Debit relief companies do nothing for you that you cannot do yourself and you have to pay them to help.
1. Cut up the credit card. You obviously cannot handle having one yet.
2. Sit down and figure what you have coming in versus what goes out into your monthly bills.
3. Take the extra money you have and begin paying it on the credit card.
4. Consider a second job - part-time or full in which that money will be strictly used for paying off the credit card.
You can also consider a personal loan from you bank (if you qualify) for what you owe on the CC. The personal loan percentage will be easier on you than the CC will be. Have the monthly payment pulled directly from your account and you can even save half-a-percent or more on the deal.
But cut up the card. As long as it's active you will be tempted to charge on it when there is something you want and don't have the cash for. No cash - no purchase.
Good luck.
Q: Does the Mortgage Forgiveness Debt Relief Act apply to short sales?
Hi - I am considering entering into a short sale of my townhouse, but I was wondering if anyone can advise me on if whether or not the Mortgage Forgiveness Debt Relief Act 2007, applies to the difference between what I purchased the townhouse for in 2006 and what it will ultimately sell for (much lower) in 2008? Thank you in advance!
A: Yes, the act would apply to you. However, the act applies to the amount of debt forgiven, which is not exactly the same as the purchase and sale prices.
For example, let's say you bought the house for $200,000 but took out a $195,000 mortgage. By now the mortgage has been paid down to $193,000. However, the house is now only worth $160,000 so that is how much you do a short sale for. So the amount of debt forgiven would be $193,000 minus the $160,000 the bank received, or $33,000.
Also, keep in mind that the act only applies to debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.
Q: Is there debt relief in this crumbling economy?
I honestly thought that a lot of companies were slashing interest rates while mine on one credit card went up 2%. I pay it every month on time. But with the economy and lack of work the debt is too much to handle. Is there any relief at this point? or do I need to declare bankruptcy?
A: Jene, Debt relief is a difficult problem many americans are now experiencing. All legitamate debt relief service providers will give you advice for free. http://www.debtreliefreview.com Try contacting serveral debt relief services and inquire about your questions and compare thier answers. You should be able to tell which ones are providing shady advice.
Good Luck.
Q: Who has worked with Freedom Debt Relief?
I am currently in a situation in which I cant afford to pay my bills. I have looked online for help but there are so many types of debt programs out there that I don't know where to start. I eventually stumbled onto Freedom Debt Relief. They seemed very knowledgeable. They told me that they are the fastest and cheapest way to get out of debt. Is that true?
Please respond only if it is related to Freedom Debt Relief. I do not need to know about any others.
A: Freedom Debt Relief is a GREAT option for people really struggling with their debts. It is a debt resolution strategy called negotiated debt settlement that can potentially cut debts with a lower monthly cost and get you debt free fast. They were reviewed very positively here: http://www.bills.com/freedomdebtrelief/
I think Freedom Debt Relief is the best company in the industry, they are on the Board of the industry association, are members of the BBB, are graduates of Stanford Business School and manage over $1.5 billion in debts for 50,000 clients.
Q: Is there debt relief for military credit union loans?
Every debt relief company tells me they can't help me because I have credit union loans from military specific companies. I am no longer enlisted, but it seems the only option I have is bankruptcy which, ironically, I can't afford because of the new laws requiring upfront payment. Is there a company that can actually help me get back on track? Serious answers only, i.e. don't waste my time.
A: There is no debt relief from credit unions of any kind. Can't you get help from family?
Q: Do Debt Relief Companies really work? Can I do the same job myself?
I am looking to pay a debt relief company 15% of whatever I totally owe. Can I do this myself? Has anybody ever done it thyself and save $2300 I need help, am I making a mistake or doing the right thing. One way or another, I need to do something about my credit.
A: Have you ever heard of the Debt Snowball? I think this is much more effective to getting out of debt than going with a debt relief company who may or may not be on the up and up. Also, if you ever listen to the Dave Ramsey Show you will hear every day that people are getting out of (sometimes a considerable amount) of debt.
The Debt snowball works like this. You write down ALL of your debts as far as the amount that you owe. Then (hopefully you can make all of your minimums) you make your budget for the month paying all of like housing, food, utilities and then put in your minimums and anything you have left over money wise you put on to the debt that is the smallest.
So, if I have 3 debts, I start concentrating my extra money on the smallest dollar amount along with its minimum and maintaining the minimums on the other two debts. Then once the first debt is paid off, I work on debt number two. I am giong to pay debts number 2's minimum, I am giong to put what Debt number 1's minimum was and I am going to put the extra money on it and I am going to maintain debt 3's minimum to stay in good standing. Once debt number 2 is paid off, then I am giong to work on Debt number 3 and 1 and 2 minimums are going onto debt 3 along with debt 3's minimum and the extra money that I figured that I could put on my debts.
Keep in mind, if you do not have any extra money to put towards your debt, you might have to get a second job to get out of debt. It is hard work but, worth it in the end.