Has anyone been in debt and is now out? Is anyone in the process of getting out of debt? Or is anyone in the business?? FH and I are lost and need help.
I have perfect credit. FH had some issues in the past and now we are trying to fix it. I have his credit reports, and we are trying to figure out the best action plan. We are fixing his student loans right now to get it out of default, but we dont know the best course of action for his other debts (mostly credit cards).
He hasn't been paying them so they are all in collections/default already.
I read about sending validation letters. If the collection agencies dont have proof, you dont have to pay. But i think it might be too late for us to do this because it has to be 30 days after getting the notice. We havent really gotten any notices or calls lately. We just know what he owes from the credit report.
We were thinking of taking out a loan in my name and negotiating with the agencies. This seems like the best idea. We can clear the debt and then have one loan we have to pay off. Thoughts???
I dont even know who to ask. I mentioned it at my bank once, but they weren't that helpful. I dont know which credit debt consolidation company to trust. ughhhhh can anyone help??
FutureCap
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Re: NWR: DEBT HELP
he should definitely make sure to atleast pay the minimum payments on all the bills. that would be a start...he should be paying something towards them, not just ignoring them!
stinenandy2010
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Re: NWR: DEBT HELP
A few years ago, I entered a debt management plans. Basically, I canceled all my cards and they consoldiated them into one payment. It also lowered my interest rate on the cards. So every month the debt mgmt plan takes out a set amount and pays the credit cards. I'm happy to say at the end of this year, they will all be paid off. This also did not affect my credit score which is great. I actually have a pretty high score and we were still able to purchase a home with a very low interest rate.
StaceyWill
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Re: NWR: DEBT HELP
I was in A LOT of debt in my twenties-I’m ashamed to even say how much. What I did was took all my credit cards- I had like (10) and paid off the one with the lowest amount first. Then after that was paid off, I went to the 2nd lowest one, paid however much I could towards it (always do more then the minimum, even if it’s only $10.00) plus I added the $$ that I put towards the 1st credit card that was paid off~(hope that makes sense). And before you know it, instead of (10) cards, you have like (4) to pay off. It’s a process and it took me a few years, but it was worth it. Now I have a credit score over 750. HTH
jackieee
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Re: NWR: DEBT HELP
What was the name of the management plan? This is something that he needs and might be the best way to go (I think!) Thanks! Glad to hear it worked out well for you :)
jackieee
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Re: NWR: DEBT HELP
That's what we did with the student loans. We are in a Rehabitliation program to get out of default. It's not that easy because everything is in collections. We are trying to figure out the best route. I just dont know where to go for this type of advice....
WeezyGirl2354
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Re: NWR: DEBT HELP
Posted by stinenandy2010
A few years ago, I entered a debt management plans. Basically, I canceled all my cards and they consoldiated them into one payment. It also lowered my interest rate on the cards. So every month the debt mgmt plan takes out a set amount and pays the credit cards. I'm happy to say at the end of this year, they will all be paid off. This also did not affect my credit score which is great. I actually have a pretty high score and we were still able to purchase a home with a very low interest rate.
11er crashing since I am kind of in a similiar situation as the OP.
Stinenandy2010 - was there a company name for the debt management plans?? was it through a bank?? any info would be great - if you are more comfortable please feel free to FM.
TIA!!!!
stinenandy2010
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Re: NWR: DEBT HELP
Posted by WeezyGirl2354
Posted by stinenandy2010
A few years ago, I entered a debt management plans. Basically, I canceled all my cards and they consoldiated them into one payment. It also lowered my interest rate on the cards. So every month the debt mgmt plan takes out a set amount and pays the credit cards. I'm happy to say at the end of this year, they will all be paid off. This also did not affect my credit score which is great. I actually have a pretty high score and we were still able to purchase a home with a very low interest rate.
11er crashing since I am kind of in a similiar situation as the OP.
Stinenandy2010 - was there a company name for the debt management plans?? was it through a bank?? any info would be great - if you are more comfortable please feel free to FM.
TIA!!!!
I went through Money Management International, they were recommended through my credit card. You can call your credit card company and ask who they recommend.
WeezyGirl2354
Posted:
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Re: NWR: DEBT HELP
Posted by stinenandy2010
Posted by WeezyGirl2354
Posted by stinenandy2010
A few years ago, I entered a debt management plans. Basically, I canceled all my cards and they consoldiated them into one payment. It also lowered my interest rate on the cards. So every month the debt mgmt plan takes out a set amount and pays the credit cards. I'm happy to say at the end of this year, they will all be paid off. This also did not affect my credit score which is great. I actually have a pretty high score and we were still able to purchase a home with a very low interest rate.
11er crashing since I am kind of in a similiar situation as the OP.
Stinenandy2010 - was there a company name for the debt management plans?? was it through a bank?? any info would be great - if you are more comfortable please feel free to FM.
TIA!!!!
I went through Money Management International, they were recommended through my credit card. You can call your credit card company and ask who they recommend.
awesome - thank you for the info
FutureMrsLMS
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Re: NWR: DEBT HELP
suze orman
happychelle
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Re: NWR: DEBT HELP
I just went through a loan modification for my mortgage and I am in the middle of doing Debt Consolidation for my credit cards. I bought my house very young (22 yrs old) and got myself in a world of debt fast, so I am literally PAYING for it now - but I am working with some great people who have helped me tremendously. FM me and I can give you more details and info on how they helped me. HTH!
GonnaBeeMrsG
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Re: NWR: DEBT HELP
Posted by FutureMrsLMS
suze orman
she is great me and FH say all the time what would suze say?...'YOU CAN NOT AFFORD IT!'
Soon2BMrsAlini
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Re: NWR: DEBT HELP
I was $10,000 in debt a few years ago. I contacted Freedom Debt in Dec 2006. I consolidated my 3 credit cards, each at lower interest, and I paid $287 month (which also included Freedom Debt's 'fee' of 35.00). I would send them my tax returns also and it was paid off by Oct. 2008. It was the best thing I ever did.
futureMrsJSL
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Re: NWR: DEBT HELP
Posted by GonnaBeeMrsG
Posted by FutureMrsLMS
suze orman
she is great me and FH say all the time what would suze say?...'YOU CAN NOT AFFORD IT!'
ITA!!! Love Suze
AshnJess110610
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Re: NWR: DEBT HELP
Debt Reduction Services is awesome. I was in a lot of credit card debt, they negotiated my rates, and now they just take 1 payment out of my account each month and pay all my credit cards. My credit score has gone up tremendously since I've been in the program. It wasn't bad before because I always paid my minimums, but its even better now. He should def. start paying at least the minimums though. Don't go with any financial counselors that advice you to stop paying your bills, or to file bankrupcy. I know some people feel this is the way to go, but its not.
FutureMrsLMS
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Re: NWR: DEBT HELP
I love Suze too! FH and I go to the mall and every time I start taking shoes off a rack to try on, or clothes..,he screams at me..
