Credit Card Debt Consolidation services can make it happen, and there’s no doubt about it. There’s no reason to delay and nothing to lose. Credit card debt consolidation can also help you avoid creditor harassment , one of the main elements that trigger stress induced health problems. Credit card debt consolidation usually makes the combined balance more manageable especially if a lower interest rate is provided. But, if there are multiple other accounts involved that were not part of the consolidating effort, it may take some time to get them all reduced to a manageable level.
Typically, when a customer buys a product with his card or uses his card as an alternative for hard cash, he is offered an interest free credit period. The customer has to make a payment for the credit used on the card before the credit period ends. Typically, debt consolidation programs are debt repayment programs. They can consolidate most types of unsecured debts from major credit cards to personal and student loans. Typically the interest on a debt consolidation loan is approximately 17-23%. That?s a hefty amount of interest that may actually be more than you are currently paying on your debt.
Bad credit debt consolidation is helpful if you want to reduce your debt burden. It is an effective technique for improving your credit scores. Bad credit and excessive debt does not make you a horrible person. With a little help from us, you will be able to get your credit and finances in top shape again. Bad Credit Personal Loans – Our company’s mission is to help people obtain the bad credit personal loans they so desperately need. We’ve helped thousands of people with credit problems find the right personal loan that meets their needs.
Credit Card debt consolidation is a short term answer to a much broader problem. Credit card debt consolidation is an agenda where the debt settlement company directs the debtors in reducing their debts through a monthly compensation of a fixed amount. Debt elimination is not similar to a loan program. Credit card debt consolidation gives you an opportunity to reduce your debts under single lower monthly payments. Thus you get rid of all high rate credit card debts and replace them with the new low monthly payments.
Debt Consolidation Advice and Assistance is our speciality
Debt consolidation is certainly not all bad and in fact can actually help out
many who find themselves in severe financial hardships. If you do seek debt
consolidation as an answer then you will have to understand that you can
negotiate the terms of the consolidation. Debt consolidation is an excellent
tool that can help you manage and decrease your debt when you just can’t seem to
do it on your own. There is no way that you can completely fix bad credit
without the ability to reduce debt and pay your bills on time. Debt
consolidation is not a loan , but a way to lower your monthly payments and lower
(sometimes even eliminating) the interest, late fees; over the limit fees you
are currently paying. Don’t delay, start today and take control of your
finances!
http://www.debt-consolidation-bad-credit.com
Watch the video related to credit card debt
Dateline NBC – Credit Card Debt Trap Part 1 of 10
@donniebrasco24 Yes that applies to about 94% of the people who have credit cards
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If I am reading this correctly, then both accounts have completely defaulted and you've not make any payments in 2 to 3 years. If this is correct:
- It is very important for you to understand that when a credit card defaults (called a "charge off"), that the damage to your credit has been done and it cannot be undone by later paying back the debt. You'll be stuck with bad credit regardless of what you do. The charge off notation stays for 7 years on your credit report. You're going to be stuck with bad credit regardless of what you do.
- Don't renew contact with debt collectors over these defaults if you're unemployed. Many collection agencies that deal with credit card defaults are highly aggressive.
- You might as well settle being that you're stuck with bad credit regardless. If you're going to pay it back, offer to settle for the lowest amount you can get. Stay off the phone. Mail or fax your settlement offers to the debt collectors. Offer to settle @ 25% of the defaulted amount and go from there. What you want is a settlement letter on their letterhead stating that the account will be "Paid in Full" once the agreed to amount is paid. Once you get this, pay with a USPS money order. Photocopy everything and keep in your records forever as documentation that the debt was settled. Believe me, you'll need it. Never agree to any settlement over the phone unless you get the terms in writing. Never give debt collectors you bank account numbers for payment.
- Collection agencies have no obligation to take any settlement for less and it's their right to demand the full amount if you renew contact with them
Before you get involved in debt settlement call Consumer Credit Counseling Services at 1-800-388-2227 they are the largest and oldest credit counseling service in the Country and are non-profit. They have offices in most all major cities and can also be reached at http://www.nfcc.org.
They will work with your creditors and lower both your interest rates and your monthly payments.
I used them several years ago and within 36-months I was not only debt free but my credit had actually gotten better since everyone had been paid.
Best thing to do is file bankruptcy. I’ve done it twice and don’t regret it at all.
When you start getting scared to look at your bank statements thats when your in trouble
Yes, it will. Settling for less than the amount owed is still considered derogatory by the FICO score formula, VERY derogatory! And that will stay with you for 7 years, assuming they even allow you to settle. They don't have to.
I don't know what your budget is like, only what you've mentioned, but let me propose something to you (and keep that 7 year credit damage in your mind through all this). You said $6500 balance, 23% interest (ouch!). Is your minimum payment around $160/mo? I'm guessing based on it being about 2.5% of balance.
The debt hasn't seem to gone anywhere because of how the math works. With minimum payments (lets say $160), it will take about 544 months to pay assuming no new charges. That's about 45 years and over $20,000 in interest. Google a minimum payment calculator and run the numbers yourself.
However, lets say you paid $200, only $40 more each month. You'd pay in full in only around 5 years. That's what extra money in the payment does for you and it doesn't take much.
It's that or suffer credit damage for 7 years. Are you wanting to settle because you can't make the minimums any longer? I'd explore every option available before trying to do a partial settlement.
GUIDO ON THE CORNER DON’T TRY TA CHARGE YOU THAT KINDA INTEREST LOL
If these accounts were already showing as charged off, paying them does nothing to improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid in full, settled, or unpaid. However, creditors look at more than just your score. They look at your whole credit report. Paid old debt always looks better than unpaid.
If you plan on applying for a mortgage in the future, the lender would require you to settle all derogatory items on your credit report before approving a mortgage.
Debt collectors will lie about just about everything. Paying a derogatory item in full does not get it removed. Before you pay collection agencies any money, get a written settlement agreement. Do not give the collector direct access to your bank account.
@afodis Not necessarily. Debt can be incurred involuntarilly in a number of ways. One of the biggest reasons can be due to suddenly becoming sick from a disease. Americans polled in 2009 reported that they had filed for bankruptcy and 62.1% that polled showed that it was due to outstanding medical bills. 3 out of 4 people who filed for bankruptcy had insurance.
awesome video!!!! i have actually used letsforgetdebt Great help!
Only idiots are in debt
I had $12,00 and $8,000 credit cards at 29% , the banks raised the rates from 8% because of “universal default” , this is despicable!. My attorney told me to send them a certified letter to not call me [by Federal Law they must stop]! This is a “Federal law”. . Then he suggested that I don’t pay for about 4 months at which time they’ll get someone to negotiate. I didn’t pay and I won’t so I save $300 a month. my credit score is low.. but so what! Call a free state Attorney or any Attorney!
Get with one of the LOCAL credit counseling groups (they are free, there is no charge) and get some real information to help you.
Go to the US Trustee Program/Dept of justice website to find approved credit counseling
http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
How comfortable are you that "CareOne" is actually paying on your debt? I hope you checked and rechecked them before you started the program, there are thousands of "debt management" scams out there that just take your money and leave you with the debt! (Care One is probably fine but how much are their fees?)
Debt Settlement is sometimes worthwhile but it too is a bad deal if you have any ability to work with your card companies. The amount of debt that they reduce, in order to settle, will be considered income and you will owe income tax on that difference!
Read this from Yahoo.
http://finance.yahoo.com/banking-budgeting/article/107996/how-bad-are-your-credit-card-mistakes?mod=bb-creditcards
It really depends on how much you can afford. Debt consolidation is more for people that can still afford their payments. Debt Settlement is more for people that are behind on their payments. Both programs will have a negative effect on your credit score so the best thing to do is just find a program that can get you out of debt as fast as possible so you can start rebuilding your credit after wards.
don't let it get delinquent just on the hopes of getting a better deal on a payoff that may or may not happen. if you let it slide and then they don't take a percentage payoff, then where are you going to be? any hit you take on your credit above and beyond a late payment is going to be more trouble to get out from under than it is worth.
the effort they make to negotiate and pursue delinquent accounts depends on the resources the company has to pursue those accounts. if they don't have alot of resources to pursue late accounts, they will be more apt to bargain with you. if they have tons of capital, and an in-house legal department to handle these things for them, they won't cut you any slack.
at any rate, try to keep up the payment best you can, get the refi and pay them off, and learn from these mistakes and not get yourself in that position again.
worst case, they will sell off your debt for pennies on the dollar to an outside collection agency who will hound you to the ends of the earth to collect a debt they paid nothing for and will make an astronomical profit on. don't let it get to that point, because your life will be hell until you get them paid.