Please send me your thoughts on going into a credit negotiation program.?
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1. Hire The Best Debt Settlement Company
2. Do It Yourself Debt Negotiation Elimination
What about those over exposed credit companies that promise you to eliminate your credit card debt by entering thier credit negotiation program? Seems to me that you put your life and credit history in their hands with no garantee. Anyone has participated? I have "mid sized"credit card debt BUT no bad credit. Pay ontime. Only Problem: monthly payments are killing me. What is the truth on dealing directly with credit card companies?? Please, can anybody share ideas and experience? Tks
Yes, I do have an option to offset some of the debt by using my savings. I was always told not "to put good money into old bad money". Going with these debt negotiation program , I thought, would preserve my savings. I do like your answers. It is indeed helping me to make up my mind. Tks a lot
It sounds to me like you don't need to go there. I have never done that, BUT I've heard that it's pretty nasty to your credit. I don't know, I may be thinking of something else. I mean, I don't know your credit history, situation, etc, but if you have debt and pay on time every month, then the credit card companies should LOVE you. I mean, that's exactly what they want - people who owe them money AND pay it.
Go find one of those low interest rate cards, or maybe one of those with a 0% intro interest rate for 6 months, or a year, or whatever - the longer the better - and do a balance transfer. Call up your credit card company - tell them you need to close the account because the interest rate is too high. You really want to research your other options, make sure there is a better rate and that you can get the card first. But I know whenever I try to close a credit card account, especially when you've been with them a while and pay on time, etc - they will definitely try to sweeten the deal to get you to stay.
PS - any time you do a balance transfer - leave that account the hell alone. Don't touch it - just make your payment.. The order things are paid off when you send in your monthly bill is wonky, and not in your favor. Oh and after your intro rate is over, you can go apply for a new card with a good intro rate and roll the balance again. It requires more work on your end, but it totally works.
March 25th, 2009 at 1:31 pm
It sounds to me like you don't need to go there. I have never done that, BUT I've heard that it's pretty nasty to your credit. I don't know, I may be thinking of something else. I mean, I don't know your credit history, situation, etc, but if you have debt and pay on time every month, then the credit card companies should LOVE you. I mean, that's exactly what they want - people who owe them money AND pay it.
Go find one of those low interest rate cards, or maybe one of those with a 0% intro interest rate for 6 months, or a year, or whatever - the longer the better - and do a balance transfer. Call up your credit card company - tell them you need to close the account because the interest rate is too high. You really want to research your other options, make sure there is a better rate and that you can get the card first. But I know whenever I try to close a credit card account, especially when you've been with them a while and pay on time, etc - they will definitely try to sweeten the deal to get you to stay.
PS - any time you do a balance transfer - leave that account the hell alone. Don't touch it - just make your payment.. The order things are paid off when you send in your monthly bill is wonky, and not in your favor. Oh and after your intro rate is over, you can go apply for a new card with a good intro rate and roll the balance again. It requires more work on your end, but it totally works.
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March 25th, 2009 at 1:52 pm
Well, there are several types of those companys.
Some eliminate your debt by paying it off and then you repay them…..At a higher rate of interest.
These also are called debt consolidation loans.
Some negotiate with the cc companys to lower your interest but they also want you to cancel your cards.
Most charge fees although some get them from the cc company.
And the last thing you need is another bill.
I would recommend this first, it's free and you lose nothing by trying.
Many credit cards will lower their interest rates for good cutomers, and since you are paying on time…….
Call them and ask them yourself. If the rep doesnt want to, ask to speak with a supervisor.
Tell them you would like to continue to use their card but it is gettng difficult to make payments on time.
Most companys would rather have some money than get greedy and will lower their rates.
As far as throwing "good" money (savings) after "bad" (old debts)…
When you make a cc purchase, you are making a promise to pay. It is never wrong to settle/pay off an old debt. It's a matter of honor.
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March 25th, 2009 at 2:03 pm
Ok, here we go: 1. I have heard nothing but horror stories from people who have participated in those 36-month "debt free" programs. I have heard of people who took their money and ran, went out of business, ruined their credit, and got them sued. A better alternative is to use a debt settlement company to get reduced rate payoffs and use your savings to pay the settlements. Check out this company that also could get you into credit repair to raise your score afterwards:
http://www.totaldebtsolutionsllc.com
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