I have like 40K credit card bills and want an easy and quick way out of them. I also need to keep my credit in a good shape so i am looking for a program to work with to help me to get red of debts. I interviewed a few debt settlement companies ( http://www.cydebt.com/home/homepage.shtm… and they told me that they can reduce my debts to 15K and wouldn't mark my credit. So what is the disadvantage of these companies and why everybody thinks that they're rip off. I also can't understand one part… what's will my creditors do if i don't make any payment?
EASY AND QUICK WAY OUT? LOL
DON'T do debt consolidation. It just moves your debt around. It rolls high interest items AND LOW interest items into the same loan at a mid-range interest rate. It might lower your monthly payments, but that means it will take even LONGER to get out of debt. It also frees up all your lines of credit so you can simply run them up again! Finally, you often have to pay a loan origination fee.
You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follow it carefully.
Go check out Dave's website as well.
www.daveramsey.com
EASY AND QUICK WAY OUT? LOL
DON'T do debt consolidation. It just moves your debt around. It rolls high interest items AND LOW interest items into the same loan at a mid-range interest rate. It might lower your monthly payments, but that means it will take even LONGER to get out of debt. It also frees up all your lines of credit so you can simply run them up again! Finally, you often have to pay a loan origination fee.
You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follow it carefully.
Go check out Dave's website as well.
http://www.daveramsey.com
References :
You can do the same thing yourself… Negotiating settlements with your creditors without going to a company to do that for you. They will charge you a fee for something you can do yourself… You can always go to Suze Ormans website and look under resources and check out the CCCS program she endorses or if things get really bad you can go to google.com and type in legalhelpers…….I am in the same boat as you.. I did the CCCS and now I went to legalhelpers and after much consideration I decided to do this road… Trying to do the right thing and pay off 40K when creditors keep charging you high interest rates is like spinning and getting no where. These creditors are bloodsuckers with their huge rates, fees and the politicians are investigating them for unfair practices so its not you. It's them trapping people.
References :
Debt Settlement is great for someone who is close to bankruptcy. Yes you can do it yourself but is it worth it and the real answer is no. Why A good debt settlement company often has agreements with lenders for settlement deals that are not available to you.
You need too do 3 things
1. Look into Consumer Credit Consoling. This reduce your interest rates and gets you debt free in 3 years. Downside it does hurt your credit and often offers know payment relief
2. Debt Settlement it can save you up to 60% and cut your payments in half and have you dent free in 3 years. Downside major impact on your credit during the 3 years in the program
3. Bankruptcy.
Feel free to call or email me with any questions. I own a debt settlement company
Craig Sinclair
Consumers Financial Alliance
craig@debtsettlementquote.com
888-5-Debt-Pro
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I was going to give my 2 cents, but I see that the first answer is from a Ramsey fan too…just discovered him on Fox Business in November…bye bye Suze Orman…
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