Debt Help Services

Posts Tagged ‘Card Debt Consolidation’

Question: What is the best company for credit card debt consolidation loans?

I am planning to consolidate about $4000 in credit card debt by personal loan. What are the best lenders to approach?

Answer: What keeps most people in debt is the fact that they keep spending more money than they make. They look at the “monthly payments” instead of the total debt loan that they are carrying. People need to stop spending now and concentrate on becoming debt free. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.

A. Have a garage sale and sell anything that you no longer need or want.

B.Get a temporary part time job, if you have one, get another.

Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn’t as hard as you think. Just follow the plan

Financial Literacy Month and Credit Card Debt Consolidation — A New Horizon Credit Counseling Weighs in

FORT LAUDERDALE, FL–(Marketwire – March 31, 2010) – A New Horizon is a well established Credit Counseling company with over 15 years’ experience as a non-profit organization assisting individuals and families from all walks of life in regaining control of their finances. This is accomplished utilizing Financial Literacy training and a host of programs to counsel and educate individuals on the …

Credit card companies target bankruptcy filers.

Question: Help- credit card debt!!!?

I have the following debts:
Wells Fargo Mortgage- $62000.00
Citizens Auto Finance- $25000.00- Behind 3 payments
Debt Consolidation Loan- $18000.00
GE Money Line of Credit- $8000.00
Chase Credit Card- $5500.00- Behind 3 payments
Sears Card- $1600.00- Behind 2 payments
JC Penney Card- $1200.00- Behind 4 payments
Wal Mart Card- $1500.00- Behind 1 payment
Natural Gas- Behind 4 months

HELP!!! I only make $45000 a year before taxes!!!

Answer: First CUT UP THOSE CARDS!!!!!

Next you need to try and cut down the debt. If possible refinance and consolidate- though I see you have a Debt Consolidation Loan... so if you can, do it.

If you can't, of course pay the highest interest rate cards first. Or calculate the amount each card will cost + interest in the long run according to the amount you owe.

Next sell your car, or give it back, obviously you can't afford whatever type it is. Buy a used car -or even better, use public transportation, a bicycle, or your own two feet.. Who cares if the car is nice, when it's costing you an arm and a leg?

Next you have to CHANGE YOUR LIFE STYLE, as in cut your other expenses

Take shorter showers- get wet, turn off water, soap up, rinse off.

Turn off lights, go buy energy saving light bulbs. Don't use heating for your house, if you're cold suck it up and wear a damn extra sweater. Similar if it's burning up outside, only use a fan, carry an ice pack, go around with light clothing.

Learn to cook, at home, no exceptions. Brown bag your lunch.

From all the store cards you have I'm guessing that you buy a lot of things- either pawn them, or sell them on ebay.com, half.com, amazon.com etc.

Have a garage sale and get rid of your junk-it's amazing what people will buy.

Try to work overtime.

If you live by yourself, consider getting a roommate to cut costs, or move into a cheaper place.

Does this all sound stupid?

It's lifestyle choices that will help you from now on, even if you file for bankruptcy, because the choices you made were the ones that got you into the debt.

If you buy stuff to keep up with appearance and to impress people, you'll only look a fool later because they'll be hearing about your bankruptcy.

Make a strict budget. Don't break it, or get frustrated and say F-this. It's what will keep your from going into further debt, or in the future, from falling into the same cycle. Living within your means, it what will allow you to live comfortably.

Wells Fargo Reports $2.5 Billion in Net Income

SAN FRANCISCO----Wells Fargo & Company : Strong, broad-based earnings Net income of $2.5 billion after integration expenses of $247 million after-tax Earnings per common share of $0.45 after integration expenses of $0.05 per common share All business segments contributed to the strong earnings results: Net income from Community Banking of $1.5 billion; Wholesale Banking of $1.2 billion; and ...

Question: Reducing credit card debt?

I am on a budget, successfully last two years. Before then, we racked up nearly $9000 total in credit card debt on five cards. (home repairs, stuff). We have paid our credit cards on time, and have NO credit cards now. My problem, I am aggravated. Before my budget, I was late paying on two cards , and all cards jacked my rates to nearly 30%. So, even paying on time the last two years, the companies still deem me ‘risky’ since I only pay minumum. I still owe $9000!! I asked for a payoff amount, since half of what is owed is interest and penelties. They all say no, nor will they reduce the interest rate. (heck, they have a gold mine with me!) Anyone have luck with a letter asking creditors to take a lower payoff amount ?? I am caring for an ill son so i can’t work, and my husband’s job cut back so we are getting half of what we were earning. I don’t want to do debt consolidation, since they tend to be a scam. If I can’t negotiate a lower payoff amount, how can they?

Answer: If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully?the Bills.com Savings Center is a great resource to help you find a lender for this type of loan.

Also, a good resource is...

http://www.safelinked.info/jump.php?link=debt

Best of luck to you.

Debt Settlement and Mortgage Modification Scams on the Rise, Warns Chicago Bankruptcy Lawyer Richard Fonfrias

Experienced Chicago bankruptcy lawyer Richard Fontrias of the Fonfrias Law Group, LLC, warns that the number of debt settlement scams and mortgage modifications scams reported in the state of Illinois is on the increase and that consumers need to better understand their rights under the law in order to take control of their financial future.

Consumer Credit Card Consolidation Fraud

Question: What is the best way to settle credit card debt?

I am in search of a company or method that will allow me to settle or consolidate my credit card debt. I have researched some companys but I am not sure what is real or a scam. Fidelity debt solutions is one of them. Has anyone had any luck with any of the debt consolidation programs or debt settling programs? Let me know. I need help.

Answer: Try calling the credit card companies especially if u are 90 days late on the payments. Ask them if they will take 'payment in kind'. This means if u owe 2000 they may take 1200 cash. If they agree tell them to send u the paperwork which should state they will not report you to any of the credit bureaus. Then send them the agreed upon amount via certified mail. If they wont do that ask them to lower your interest rate. Most will do that.

The year in review: The biggest stories of 2009

A controversy surrounding accusations that the Village of Gurnee intended to remove a non-profit foundation from heading up the construction of the Heroes of Freedom Memorial Park resulted in public outcry from dozens of veterans and memorial supporters. In October, village trustee Kirk Morris, a Gold Star father who lost his son Geoff, a Marine, to the war in Iraq in April 2004, lambasted Mayor ...

credit card debt consolidation program

There is a one basic rule that must be followed at all times if you want to get rid of credit card debt without doing anything illegal. Negotiations- this is the magic word. You will have to resort to negotiations again and again. You have no choice but to convince your lender to alter the terms and conditions of the credit card loan. Only then can you bring down your existing debt and eliminate it very quickly.

However, simple plain negotiation without application of your mind will be futile. You should have a specific goal in your mind. You should use legal tactics that will convince your lender that settlement, consolidation or other forms of debt relief is the best way to proceed.

Many fraudulent settlement companies advise their customers to stop making repayments. They explain that this would put additional pressure on card issuers. What they hide or omit to explain is that card issuers will come out in full force to recover the loan. Your loan account will be transferred to collection agencies. You will be called again and again. Your friends and family members will be advised to be careful when dealing with you It would not be incorrect to say that ignoring your credit card issuers will convert life into a living hell.

On the other hand, genuine settlement companies take that extra step to get in touch with credit card issuers and clearly explain that the problem you are facing. They point out that the current requirements and expectations of credit card issuers will only push the individual to bankruptcy. This is one tactic that can be very useful if used in subtle manner. No lender wants to be the cause for another bankruptcy. That is the reason why they are very quick to offer generous waivers to those preparing for bankruptcy.

Such tactics combined with good negotiation is the best way to convince lenders to help you get rid of debt. Whether you have chosen a good company or not depends on the waiver granted by the lender. A 70% waiver means that you have made the right choice.

If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.

Politics 2010: Economy, U.S. Senate race are major factors in Florida

Editor’s note: This is the first in a series that looks ahead at elections and issues that will dominate politics in 2010. TALLAHASSEE — Budget issues and insurance matters will hold center stage in a 2010 election year as the state continues to deal with tough budget times made more precarious by the inevitable exhaustion of federal stimulus dollars.Southwest Florida lawmakers say they expect …

Credit & Debt Consolidation : Credit Card Debt & Low Interest