Your Questions About Debt Consolidation Non Profit

May 20th, 2012 No Comments

Jenny asks…

Debt consolidation…?

I am trying to consolidate about $16k of credit card debt. Anybody know of any good websites to go through that wont screw me over? And is going non-profit really as good as it seems?

Get Debt Under Control answers:

“Non-profit” means only that the company has been granted that status; it does not mean that they are a charity or that they provide anything for free.

Before you choose a debt consolitation service, visit http://www.daveramsey.com or check out Dave Ramsey’s book, “Financial Peace,” which is available at any bookstore.

He is an authority on getting yourself out of debt without bankruptcy or debt consolidation, and is heartily against both.

Debt consolidation is a racket. They charge you more of what we already know you don’t have enough of in order to arrange to pay your bills.

If you do decide to go with a debt consolidation company, get everything in writing. EVERYTHING. Rely on NO verbal promises. Check with the Better Business Bureau, www.ripoffrecord.com and the Office of Consumer Affairs of the State’s Attorney General. (This one is in the blue pages in the middle of the phone book under the State listings.)

Remember that once you sign up with a debt consolidation outfit, the debt and the responsiblity for it are still yours. You still get a monthly bill that you must open and verify the payment. If the service misses a payment, you can be permanently removed from the program by the creditor and have no further opportunity.

If you can avoid debt consolitation, by all means do. If you don’t feel you can, be really careful.

I’ve written several articles about debt consolitation on http://www.ehow.com — you might want to check them out.

Richard asks…

Can anyone reccommend a TRUE non profit debt consolidation organization?

I’m looking for a non profit debt consolidation organization in the California Bay Area with actual proof of non-profit (501(c)(3)) status. Not simply because I want free service, but because I work in a non profit organization so I try to support them as much as possible. I will continue researching but I was just wondering who out there has found an organization that is trustworthy and true to their claims.

Get Debt Under Control answers:

Http://www.nfcc.org/

If you go through the National Foundation for Credit Counseling (link above), you will not get scammed. I don’t know if they are totally non-profit, but I know they can’t be making much as their processing fees are very low.

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Your Questions About Credit Counseling Agency

May 19th, 2012 No Comments

Helen asks…

credit counseling company they said they will settle for 25%?

i have two 2 cards.. 150000 in debt, i called this credit counseling close to my house …they said they will settle for 25% on the 15000. that will be 3750.. is that true….and i have to paid the 800 fee..i called the colloction agency.. they offer me 60% to pay for the settlement…9000.. what should do….my score 580 now and i have two collation on my report…..4 years old?
i am from ontario canada

Get Debt Under Control answers:

Sounds like you are talking to a debt settlement company, not a credit counseling company — at least not a NFCC member. Check here for a NFCC member credit counseling company: http://www.nfcc.org/. These are legit, non-profit credit counseling companies that offer debt management programs for a nominal fee. They don’t negotiate settlements. They negotiate lower interest rates and payments so you can pay off your debt.

If both these accounts are in collections, you should be able to negotiate a settlement on your own. If these debts are 4 years old, offer them 25% — they may be close to the Statute of Limitations (SOL), the timeframe to bring lawsuit. Lump sum gets the best deal. Payment plans have to be short term.

Be sure to get any settlement agreement in writing and save it, along with your payment proof, forever. Do not give the collector direct access to your bank account.

Paying off this old debt will not improve your score. The damage is already done and the negatives will remain on your report for the balance of the 7 year reporting period, paid or not. However, creditors look at more than just your score. They look at your whole report. Paid old debt looks better than unpaid.

Susan asks…

Anyone know of a source to obtain a 50-80k unsecured loan?

Excellent credit. Currently at 100 LTV on home so no equity there. Just want to consolidate CC bills into 1 payment at a reasonable interest rate for a 4-6 year term. I am not
interested in credit counseling agencies. Just looking for a loan to pay back in the above mentioned time frame.

Get Debt Under Control answers:

Sure. Go to www.iwant2Bbankrupt.com. I’m sure this applies to you.

Seriously, you are trying to fix your interest rates, but interest rates are NOT your problem. I am a freaking math nerd, too, but you are in the wrong pew. Please get a copy of Dave Ramsey’s “Total Money Makeover” book before you go & do something you will live to regret. I’m not trying to sell you something, just get it at the stinking library, okay?! I’m trying to spare you a little of the misery I have been through over the last several years.

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Your Questions About Credit Repair Companies

May 19th, 2012 No Comments

David asks…

Looking for referrals from people who have good experience from credit repair company?

I am interested in finding a credit repair company that has proven to have a very positive impact on your credit score. I know that the best way is to do it yourself so I would not like to hear responses from people who have no actual company in mind. Thank you.

Get Debt Under Control answers:

I tried on my own and got 3 things off. Then signed up with Lexington Law for a small monthly fee and they got another 3 things off. I only used them for 3 months because I was tired of paying them. It was a mistake I should have at least stayed 6 months. I’m not sure what they do differently because what they got off, I’d already tried and failed.

Chris asks…

Looking for a reputable credit repair company?

I’m currently looking for an affordable reputable credit repair company. I have looked online but there are so many to choose from. Any suggestions? Or can anyone steer me in the right Direction?

Get Debt Under Control answers:

All credit “repair” companies are scams. They cannot legally change anything on your report. Any money you pay to them would be better used paying off bad debt.

The only thing that will clear up your credit report is 7 years of good payment history and responsible account ownership.

Sorry!

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Your Questions About Debt Consolidation Programs

May 18th, 2012 No Comments

Joseph asks…

will a federal company hire me even though im on debt consolidation program?

i consolidate my debts 2 months ago(all credit card loans) and part of the job application pertains to my personal credit.

Get Debt Under Control answers:

The fact that you’re not ignoring your debt and trying to pay it is good. I just went through the same application process and I got the job.

Nancy asks…

Does joining a debt consolidation program hurt or help your credit?

Get Debt Under Control answers:

Only the bank you used to borrow the money for the debt consolidation will know what the funds were used for althought others may deduct the fact from seeing balances reduced to zero after a loan. Consolidating your debt is not necessarily a negative. There are many reasons to do so even if your credit is sterling. Simple consolidation to payoff high interest rate loans with a lower interest loan is considered good judgment.

If the loans paid off were all delinquent, the debt consolidation might help you, it will not, however help your credit until you have maintained a history of paying on time.

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Your Questions About Debt Consolidation Care

May 18th, 2012 No Comments

George asks…

Should i file for bankrupcy or do debt consolidation?

Im 24 years old and when i turned 18 i got a credit card and screwed myself. I was young and dumv and ran it up. I owe close to 2k most of which is late fees. Also with a few unpaid utility bills. Including cellphones tv and internet. I have since moved from the area so i dont get mail or calls but its been wieghin on my mind and want to get it taken care of if i were to guess i owe close to 5k and i hardly make enough money to get by. I want this taken care of and i want to better my credit. I just dont know what route. Please help. You can reply to this or email me at mjmjr88@gmail.com

Get Debt Under Control answers:

They will never let you declare bankruptcy for that small an amount. Get a second job because they won’t right off that amount either as it can easily be paid.

Laura asks…

How do you handle the anxiety of the weight of debt?

I have 2 credit cards , an attorney to finnish paying, and child support back pay (which wasnt my fault) that I owe money to and it seems over whelming. It wasnt a problem before when I had a great paying job. At times I feel happy till I remmeber what I have to do about my bills. How do you cope and go on with evryday life without feeling so weighed down and depressed about these impending bills that seem to pile up and snow ball? How do u stay happy? Is there anything I can do to take care of them (besides working)? I was either thinking of debt consolidation or Country Wide.

Get Debt Under Control answers:

My credit got screwed during cancer treatment. I still cant work, and am getting deeper and deeper everyday.

The depressive part isnt the money that I owe, or being broke because I am trying to pay off bills.

The depressing part are the things I cant do, even if I did have a job. No one will rent to me, atleast not a commercial company. The house I am currently in is owned by a private person and he took a risk in renting to me.

I cant finance my own education. Looks like tax payer dollars are paying my way through school now. I am starting back this semester (classes start next week). Mostly on financial aid. Family is chipping in a little. But because of my credit, I dont qual for a federal student loan, and the private companies wont lend to me.

I cant buy a car. I actually have enough money with disability to make payments on a cheap used car. But no one will lend to me. My car is on its last leg, and I have no way of paying for the repairs it needs now, or when it finally dies.

If simply paying your bills and not having spending money is all you have to worry about, you are lucky.

In the mean time, try consolodation. Though I am not sure your child support can go into that, and certain companies will only help if you have more than a certain amount of debt. Dont forget, you often have to make a down payment to pay for the services, or closing costs of the loan or mortgage.

In the meantime, just remember that what doesnt kill you makes you stronger. Yeah, it really sucks to not be able to go buy xxxx, but you are taking the higher road by trying to straighten your money problems out. In the end, you will be stronger and wiser. Not likely to so this to your self again, are you? Already have learned something.

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