This is not for me but a close family member...I know they are NOT the route to usually go and I would usually vote against them. But I am at a loss here for a close family member who just doesn't seem to be able to make ends meet. I wish I could help but we are in our own situation as well with Joe just getting back to work, the baby, our new apartment...sooo I was thinking maybe this person would benefit from something like this? They don't own their own house they rent, they aren't going to either (they are elderly), it seems from talking to them that their credit cards are what the problem is. Any opinions?
EsquireBride
Posted:
Member since
Re: Debt Consolidation Companies
I know two close people that have used a debt consolidation company and for them it really helped. They had racked up too much debt and were unable to pay off anything, and by going to a company they were able to start building up a fund for which the company to negotiate a lower amount to pay off the debt. It takes a long time and you pretty much have to give up all credit cards to do this, but it really worked for them. Also, one of these people was sued by a credit card they had and they were able, with the help of the company, settle for a much lower amount and in order to have the money up front to pay it off the company LENT my friend the money and is letting my friend pay it back over the next few months.
So just research the company on the BBB. For some people they are really the right option.
emomma17
Posted:
Member since
Re: Debt Consolidation Companies
Yeah I am wondering if this is for them. They are over 75 years old, retired but apparently the credit card debt has them paying more than they can afford. I want to help them but can't financially right now so I am wondering if this would be the route for him. If he was younger and wanted to buy a home I wouldn't suggest it but at this point and this stage of their life I would say how much can it hurt.
Jenn04
Posted:
Member since
Re: Debt Consolidation Companies
I consolidated once and took out a personal loan. The rate wasnt great but it was a way for me to pay something down. Later on I got another credit card and arghhh started charging again. So overall I did not learn my lesson very fast. I think maybe a debt place is a good way to go if they are seriously in bad shape but they have to get rid of the cards. I wasnt in that bad of shape and did have a job and $$ to make payments, etc but it was just a spending obsession - that is where the prob is, to stop the spending.
emomma17
Posted:
Member since
Re: Debt Consolidation Companies
Yeah see I don't think he is the problem more than his other half who seems to think money grows on trees or that he is bringing home a paycheck every week when in fact he is retired. He has social security as does she and he has income coming in from property but it doesn't seem to cut it. I am not sure the extent of their debt but I know that they need to do something. At this stage of the game he should be enjoying life not struggling to make ends meet.
luvabul
Posted:
Member since
Re: Debt Consolidation Companies
i work for a Collections Attorney...who actually represents debt collectors, and credit card companies, you can actually settle your debt WAY LESS than what you owe. Just today someone had a visa card debt for 11,000k and we settled it in court for 7100. this route can take place once your actually in court and infront of a judge only.
EsquireBride
Posted:
Member since
Re: Debt Consolidation Companies
Posted by luvabul
i work for a Collections Attorney...who actually represents debt collectors, and credit card companies, you can actually settle your debt WAY LESS than what you owe. Just today someone had a visa card debt for 11,000k and we settled it in court for 7100. this route can take place once your actually in court and infront of a judge only.
I think you can do it out of court too -- one of my friends was able to settle a debt for about 50% of it, and it was done all my agreement with the CC company and they never went to court.
Autumn08
Posted:
Member since
Re: Debt Consolidation Companies
They consolidate your debt, hopefully at a lower rate. Buy having one loan you should be able to pay more toward the principle than making multiple minimum payments. Research the companies you look into.
mrsjpc3
Posted:
Member since
Re: Debt Consolidation Companies
DH and I just did something similar this week: I had 2 bank of america cards with high enough debt. DH spoke on my behalf, he was x'fered to 3 or 4 different dept's. He told them I was losing my job next week, and after next month I was not going to be able to make any payments to them. After about an hour and a half on the phone, he got my debt settled for 1/2!!!! The only negative thing, is that it counts as a charge off (is that the right term?) on your credit, but it will eliminate your debt. I am taking my tax return, and paying off that debt to them.
Also, I had a GE Money card, I called them today, said the same thing. Although they would not do a 1 time settlement with me, they offered me 0% interest for 40 months, and reduced my monthly payment to next to nothing - no penalty to pay it off early.
There are ways to negotiate with them, you just have to be really persistent. If you dont get the answer you want with one rep, ask to speak to someone else.
alli3131
Posted:
Member since
Re: Debt Consolidation Companies
I did debt consolidation and I also worked as a Collection Atty. FM me is you want more info. Do not do the charge off's. It will hurt your credit where the debt consolidation you pay the full amount. They just get the interest rate knocked down and it gets reset if they are late and owe past months payments. It took me four years but if you pay the consolidation then it wont hurt your credit. I know have excellent credit and its because of the debt consolidation.
curiousgeorge
Posted:
Member since
Re: Debt Consolidation Companies
Debt Conso companys can bring down the monthly payment significantly, but beware...its over a LONG period of time. A friend of ours did this but ended up filing bankruptcy anyway. Now she wants to buy a house and she cant because her credit is sooooo messed up. Its so sad. I tell everyone just MAKE the minimum payments.
