Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
Posted: 10/20/2004 1:00:41 PM EST
When I was making better money I got a credit card thats now a burden. I'm still in a position to make payments but not much over monthly charges so the balance is going nowhere fast.

What can those companies that help with debt do for me? Do they negotiate better payments or more $$ towards the principal, what? How do they go about it?
Link Posted: 10/20/2004 1:03:12 PM EST

Originally Posted By Boom_Stick:
When I was making better money I got a credit card thats now a burden. I'm still in a position to make payments but not much over monthly charges so the balance is going nowhere fast.

What can those companies that help with debt do for me? Do they negotiate better payments or more $$ towards the principal, what? How do they go about it?



get a second job to pay off debt.

Link Posted: 10/20/2004 1:08:13 PM EST
Cut up the cards immediately. Put yourself on a cash basis. Live and eat cheaply. Live as if you are broke....wait a minute. You are broke. So am I.

I don't eat out, go to the movies, or buy anything I don't absolutely have to have. I spend very little on food.

I don't know about debt negotiators. I see two downsides are possible. First, bad credit rating. Second, the idea that you aren't responsible for your debts. Talk to the card companies first. Likely pissing into a headwind, but start there.

I am not ridiculing you. I am in bad financial shape right now. A divorce I did not want but did not fight has left me busted. Life goes on.
Link Posted: 10/20/2004 1:08:22 PM EST
I never used them but did talk to them when I got laid off one time and had surgery.

If you use them it will still reflect negatively on your credit rating. It is better than bankruptcy but still hurts. They will cancel your card and get you a lower interest rate and set up fixed payments I think. Good Luck! Get that damn thing paid off! credit card companies are teh suck!
Link Posted: 10/20/2004 1:21:25 PM EST
Link Posted: 10/20/2004 1:30:51 PM EST

Originally Posted By Boom_Stick:
When I was making better money I got a credit card thats now a burden. I'm still in a position to make payments but not much over monthly charges so the balance is going nowhere fast.

What can those companies that help with debt do for me? Do they negotiate better payments or more $$ towards the principal, what? How do they go about it?



Will debt-counseling affect my credit?
Using a debt-management plan to pay off debt won't hurt your credit score, but it may make it difficult to qualify for new credit.

When you enroll in a debt-management program, you write a monthly check to a credit-counseling agency and the agency pays your creditors. A debt-management plan usually lasts three or four years. A comment stating that you're paying an account through a credit-counseling agency appears on your credit report and remains until the account is paid in full. Such a comment won't hurt your credit score in the least.

However, if you get involved with a debt management agency that is late making payments to your creditors -- or doesn't make any payments at all -- your credit will be damaged.


Go here for more info www.bankrate.com/brm/news/debt/debt_manage_2004/pro-help-faq.asp
Link Posted: 10/20/2004 1:37:52 PM EST

Originally Posted By SWIRE:

Originally Posted By Boom_Stick:
When I was making better money I got a credit card thats now a burden. I'm still in a position to make payments but not much over monthly charges so the balance is going nowhere fast.

What can those companies that help with debt do for me? Do they negotiate better payments or more $$ towards the principal, what? How do they go about it?



Will debt-counseling affect my credit?
Using a debt-management plan to pay off debt won't hurt your credit score, but it may make it difficult to qualify for new credit.

When you enroll in a debt-management program, you write a monthly check to a credit-counseling agency and the agency pays your creditors. A debt-management plan usually lasts three or four years. A comment stating that you're paying an account through a credit-counseling agency appears on your credit report and remains until the account is paid in full. Such a comment won't hurt your credit score in the least.

However, if you get involved with a debt management agency that is late making payments to your creditors -- or doesn't make any payments at all -- your credit will be damaged.


Go here for more info www.bankrate.com/brm/news/debt/debt_manage_2004/pro-help-faq.asp



+1 on this...

Depending on how savvy you are, you can do everything a debt counselor will do for you and without charge. Granted, you don't typically have the bargaining power that a credit counselor does but if creditors know that they can either work with you and get paid or you will take bankruptcy and they will get little to bupkiss, you can negotiate.

If you are savvy, you might contact your creditors directly to bargain for lower interest, etc... just don't let them sell you an extension of credit or offer to spread out payments at a higher rate of interest...if you have debt problems it is important to stop relying on credit ASAP. If you find that you cannot, a BK may be in your future.

Tread carefully, I have filed BK for a vast number of people who had little to no result with a credit counselor. Of course, if they have a good result, they don't come to see me so take my observations with a grain of salt. Remember, most credit counselors operate for a fee and are therefore your creditors as well... they are typically looking out for their own best interest, not yours.
Link Posted: 10/20/2004 1:42:12 PM EST
I just found out when I bought my car the other day that if you "settle" an account with the credit card company it still reflects badly on your credit. I used a debt consolidation program to allow me to adjust two credit cards and two hospital bills into one lump sum. The credit card company came back and offered to settle with me for half if I could just pay it off then. I did so and it reflected badly.

My advice ... your credit is possibly your most important thing you can take care of. Continue to pay your minimums until you have extra money to send in. Live on a very tight budget. No matter how tight you think your budget is you can always trim some away. For example ... I am attempting to put extra money into savings every single week. I stopped eating lunch out. Stopped renting movies. Stopped burning up the roads and saved in gas prices. And most important ... I stopped letting that extra twenty dollar bill burn a hole in my pocket. I've saved almost $3000.00 in less than three months by trimming away excess spending. Do I do without? Yep. I turn down drinks after work or movies on the weekend, but I'd much rather have a little nest built up for a rainy day.

Good luck!
Link Posted: 10/20/2004 2:56:41 PM EST
[Last Edit: 10/20/2004 2:57:42 PM EST by Boom_Stick]
Thanks for the replies.

Right now I can maintain the payments till the paychecks get a little better. I was hoping that I could somehow get more of what I'm putting on it to go towards the principal. I'll start by asking the bank first, but they wont help I'll just keep paying what I'm paying till I can pay more.

Sounds like outside help/negotiators aren't worth it.
Link Posted: 10/20/2004 3:03:32 PM EST
Link Posted: 10/20/2004 3:08:06 PM EST
Some of these companies are sharks and you are the blood in the water. WATCH out!!! Several of these companies have been/are in trouble with the govt. as to their business practices. What happens is you pay them and they do NOT pay the creditors, you end up out even more money and a very bad credit rating.

Check out what this man has to say. He has helped quite a few people in your position.

www.daveramsey.com
Link Posted: 10/20/2004 3:11:32 PM EST
If you have several cards with balances, keep up on the payments, but pay off the smaller ones first. This will cut down on the number of accounts killing you.
Link Posted: 10/20/2004 4:32:28 PM EST
Tagged for home.
Link Posted: 10/20/2004 4:38:29 PM EST

Originally Posted By Mahatma8Rice:
If you have several cards with balances, keep up on the payments, but pay off the smaller ones first. This will cut down on the number of accounts killing you.



Thankfully, I only have one!
Link Posted: 10/20/2004 4:58:53 PM EST
I have never used a negotiater, but have negotiated better rates and reduced my interest rate and payoff.

Call the company and simply say that you are working on trying to pay off your debt and want to speak to somepone about renegotiating the terms. In most cases they will reduce it or, if you have enough cash, settle for say 60-70%.

Remember a credit card is a business deal, and like any other is subject to renegotiation if both parties agree.
Link Posted: 10/20/2004 5:20:11 PM EST
It doesn't sound like you're in bad enough financial shape to renegotiate or default on your debts. You've still got a job, and you're making enough to meet the monthly payments. Personally, I'd be looking to pay off my existing debt at a lower finance charge (either by rolling it over into another credit card account with a discounted interest rate, or with a debt consolidation loan).
Link Posted: 10/20/2004 5:50:53 PM EST
Depending on your balance, some credit union (people use banks?) will loan you money on your signature. And their intrest is simple intrest.

I feel your pain, life happens. You can do it though man! Even a second job was mentioned. If you go that route be sure to use ALL of your second job earnings on that CC balance.

Good luck!
Link Posted: 10/20/2004 5:54:21 PM EST
My solution to this required me to get divorced (she got half of it), becoming a consultant for three months (paid off my half), and getting a better job (to help me live while I pay off the loan we took years ago to pay off our credit card debt! )

Credit cards are a nightmare. I hate them!
Link Posted: 10/20/2004 6:01:42 PM EST

Originally Posted By rebel_rifle:
Some of these companies are sharks and you are the blood in the water. WATCH out!!! Several of these companies have been/are in trouble with the govt. as to their business practices. What happens is you pay them and they do NOT pay the creditors, you end up out even more money and a very bad credit rating.

Check out what this man has to say. He has helped quite a few people in your position.

www.daveramsey.com



+1

Listen to Dave Ramsey on the radio if you can - he will set you straight.
Link Posted: 10/20/2004 6:09:11 PM EST
Link Posted: 10/20/2004 6:13:02 PM EST
One more thing. If you have say a $400 payment pay $200 every 14 days. That accomplishes 2 things, you make one more payment every year, and you keep the balance lower for half of each month and in soem cases that can lower the interest.

Here is a great place to start.

clarkhoward.com/topics/credit_debt.html

BTW, don't start paying off multiple accounts by going for the smallest one.. concentrate your $$$ on the one with the highest interest rate. Why? Because you only have x amount of money to pay every month towards y amount of debt, so paying off the higher interest ones saves you $$ in the long run.
Link Posted: 10/20/2004 6:13:04 PM EST
If you are going to keep making regular payments for now - THAN THIS IS VERY IMPORTANT ALSO:

? do you know the process for which cards to pay 1st and how to set that up.?

line the cards up on the table and Make a list.

top of the list - THE highest Interest rate (No matter what the balance!!!!!!)

2nd The next highest.

and so on.................

Now - Let's say you have 5 cards and each has a minumum balancepayable of $100 (for example only).

Say you can pay $600 each month. Pay the Minumum Balance on EVERY CARD except the highest interst rate one. (again - no matter what the balances are). So in this example you would pay $200 to the 1st card and $100 to each of the following.

Once the 1st card is paid in FULL - Then pay only the minimum balance on each of the others BUT put any extra AND THE PAYMENT YOU WERE MAKING on card #1 onto card # 2. Rinse and repeat.

This works better then you can imagine.

Before any of this though - Set up a budget - Email me and I will send you a nice blank worksheet! No charge! You can make it out for your needs in a jiffy.

and remember - Never even put any depreciable assets on credit! you will get rich playing that hand!

good luck.
Link Posted: 10/20/2004 6:13:34 PM EST
We did the credit counseling thing (we had multiple cards: his, her and ours) and found that it is indeed a negative, however, we no longer have any credit card debt, so that makes us look better. Sorta odd. Anyway, I would suggest a signature loan if you can get one because there will be an end in sight and it will probably lower both your interest rate and your montly payments.
Link Posted: 10/20/2004 6:17:02 PM EST
and if it is only one you should be cool. There are people out there with 50,000 grand plus in credit card debt and are not homeowners!!

is this card an American Express where you have to pay off the balance each month?

Link Posted: 10/20/2004 6:28:28 PM EST

Originally Posted By Mahatma8Rice:
If you have several cards with balances, keep up on the payments, but pay off the smaller ones first. This will cut down on the number of accounts killing you.

+1

Had a buddy that got in dire straits (day trading, dumbass commodities bets, then a layoff), that's what he did - paid minimums on all, then every dollar he could scrimp on the smallest balance, until it was paid off. Then moved on the the next largest. Gave him immediate positive feedback, and as each acct was paid the eliminated minimum payment rolled onto the next payoff, a snowball effect. Don't think he ever paid more than $450 / mo, and he was out from under in ~2yrs. No missed payments, no third parties involved, no defaults, no negotiations.
I didn't think he'd have the sense or the discipline to follow through, after the way he'd fucked up in the first place.
Link Posted: 10/20/2004 6:30:39 PM EST
I used Consumer Credit Counseling Service (non-profit) to help me get out of almost 15k in debt.

It took about 5 years and when I was done I spent some time cleaning up my credit (using CCCS didn't negatively affect my credit, all the bad debt did). And about a year later I bought a house with a very decent credit rating.

Can you do it? Yes. You will need to make sure you use a reputable credit counseling service and stick with it.

And head over to Credit Boards and read like a fool.

You can do it!
Link Posted: 10/20/2004 9:57:30 PM EST
Don't you ever read your spam mail?
Top Top