Credit Card Debt Consolidation Solutions That Work
Credit Card Debt Consolidation is not a loan so you don’t have to qualify or put up any of your assets. You can include current or delinquent unsecured accounts into the program. Your interest rates are either eliminated or reduced and that is in most cases. Interest rates will usually range somewhere between 0 to 9.9% once you have joined the program. By having this happen you should get out of debt up to 75% faster than you normally would. This in turn will help you build a better credit rating and score. Once your account is set up, you will make one payment each month and that payment will be distributed each month to the creditors you have included into your program. By joining this type of program you are not defaulting on your debt therefore you can not be sued by your creditors. Default typically happens after 4 to 6 months of non-payment. Be very careful of any company advising you to stop your monthly payments to creditors. Read more at www.debtsettlementscams.com
Most Credit Card Debt Consolidation programs usually last between 3 to 5 years and may be the fastest and most effective method of eliminating unsecured debts without a loan. Creditor payments are consolidated into one affordable monthly payment. The payment amount and payoff period quoted to you on Debt Solutions USA’s free no-obligation quote system is 90% accurate. Keep in mind you can always make a higher monthly payment if you chose to. Making higher payments will help you get out of debt faster than the proposed payoff period quoted. There is no prepayment penalty. The program will end when you are finished paying off your included debt or if you cancel the program.
Participation in Credit Card Debt Consolidation is NOT factored into your FICO® score.
Usual benefits of the program are:
Elimination or reduction of interest rates Reduction of monthly payments Stop collection calls. Proposals will go out to your creditors approximately 10 days after your designated draft date. Elimination late fees and over the limit fees Re-aging of past due accounts to a current status (usually done after making 3 consecutive payments) Re-build your credit and credit rating Consolidate your bills into one easy and affordable monthly payment The management of your debt to ensure the earliest possible payoff Restoring your peace of mind through goal orientated financial management and budgeting analysis. Reduce creditor collection efforts because they are now being paid each month.
Companies such as http://www.debtsolutionsusa.com offer information and a free no-obligation quote at https://www.debtsolutionsusa.com/credit-card-debt-consolidation.aspx
Watch the video related to credit card debt consolidation
Think you’ve got it bad with the fees your credit card charges you? Well try this: $247 up-front, for a $300 credit line… And that’s not the worst of it!
September 11th, 2011 at 3:52 am
There are a few options:
1. You can go the credit counseling route. There are tons of Govt approved counselors, make sure you go through them, to prevent getting scammed. Here is a link to list of counselors approved by the Govt, by State: http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
A reputed counselor can basically look at your finances and work out a payment plan, so you can send just one monthly check to them, which they distribute to your creditors; they can also negotiate lower rates with your creditors, and also provide you with other money management suggestions. Here is what all a counselor can do for you: http://www.credit-card-debt-relief-info.org/debt-management-credit-counselor.html
2. If you prefer to do this yourself, you can try and get a consolidation loan from your local banks or credit unions. But since your balances are that high, I doubt if you can secure such a huge loan, with a decent rate. One option may be a secured consolidation loan, where you put up a collateral, but you have to make the choice if you wish to put an asset of yours (like home or vehicle) under risk, to resolve your credit card issues. Here are some ideas on where you can get consolidation loans: http://www.credit-card-debt-relief-info.org/debt-relief-loan.html
3. Last option is settlement, but since you haven't missed payments, and your dad's income is on the higher side, you may not qualify for this. It is typically for those that are several months in default, and are unable to manage on a day-to-day basis. Again, a counselor may advise what the best course of action is, so I suggest you fix up an in-person appointment with one who is closest to you. All the best.
September 11th, 2011 at 4:41 am
Most if not all of these so called "debt consolidation companies are a scam.
What they do is not pay your creditors for months and then try and settle with them for less. No special skills. They just don't pay.
They also charge a fee everymonth to do this.
Your creditors do not have to talk with these people. It's your debt.
Also, if they don't pay your creditors. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hired.
September 11th, 2011 at 5:52 am
Try calling each and every account, and see if you can work out something with them. You will now have to establish a positive credit rating.
September 11th, 2011 at 4:37 am
Family meeting folks, need to cut cost, OK how about canceling all insurance policies (frauds anyway) walk away from credit cards (Fico a fraud and slavery). Hey,..it’s just a pragmatic family business decision, Big banks do it all the time so they remain “liquid”. Think I’ll start me a family veggie garden, pop me a cool one and,… Oh well fuck it!
September 12th, 2011 at 7:34 am
maybe you ought to just forget about them if your credit is already damaged, keep using them to buy stuff, then when you run out of credit on your credit cards, declare bancruptcy
September 13th, 2011 at 5:46 am
Weigh the length of time you'd be paying back a consolidation loan vs. the time it would take you to pay back your credit cards, figuring in your interest rates. If you find that it will be less money in the long run to consolidate, go for it.
September 13th, 2011 at 1:11 pm
I would recommend http://www.consolidate-bills.com
I've been working with them 2 times and I am very happy with the results. After you fill out the short online form with your contact information, a professional debt counselor will contact you and provide a free credit card debt analysis, and discuss your options.
Hope this helps.
-Michael
September 13th, 2011 at 8:18 pm
Why the bank will not lend to you:
The purpose of a credit score is to help your creditors determine their risk if they choose to lend you money or extend you credit. The fact that your score has dropped below 500 is a warning for banks to be cautious, and as you are finding not to lend to you. Although, you now have a good paying job a bank cannot use that as the sole reason for lending to you. From the banks standpoint if they lend you the money and you lose your job again chances are really high that you will not have the entire amount to pay off the amount lent to you. This is exactly what happened that put you in this position to begin with.
No bank wants to sell of an account or negotiate a settlement with their customer. Banks want to lend to someone who has a history of repaying their debt, and that the person is responsible with their finances. Ideally, one should never borrow more than what they can afford to pay off within 30 days of borrowing, an exception to this would be an auto loan or a mortgage. In other words, from the banks point of view, a borrower worth lending to would be a person who budgets, saves, and plans for a worst case scenario (i.e. financial hardship). The fact that you have a good income doesn't matter to the banks because, in this economy, it is very possible that you can lose your job again and end up right back to where you are at now. I do not intend on sounding harsh, but you can take this as a learning experience and grow from this.
Possible solution:
If your debt is unsecured and not student loans you may want to looking into debt settlement services. Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are not paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy.
I encourage you to read the article in the link I provide that has discusses "what are my debt resolution options". In this article I discuss the various options, in detail, you have for dealing with your debt.
I hope this information helps you Find. Learn & Save.
Best,
Bill
http://www.bills.com/blog/
September 14th, 2011 at 2:05 am
Myth: Debt consolidation saves interest and you have one smaller payment.
Truth: Debt consolidation is nothing more than a "con" because you think you've done something about the debt problem.
For more information on the truth about debt CONsolidation, visit http://www.daveramsey.com/the_truth_about/debt_consolidation_3035.html.cfm
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The only surefire road to financial freedom isn't an easy one, but with the right discipline, it is very effective.
Watch this video: http://www.hulu.com/watch/48522/the-dave-ramsey-show-may-2-2008
September 14th, 2011 at 11:55 am
You have 3 different choices here:
1. Negotiated Debt Settlement
2. Consumer Credit Counseling
3. Debt Consolidation Loan
Except the loan, both, credit counseling and debt settlement, are going to negatively impact your credit. In credit counseling, you are paying a third party to make payments on your behalf, and in return the credit counseling firm is supposed to get you discounts on late fees and interest rates to "ideally" get the debt paid of quicker. These programs usually do not work, primarily because, no one agency has great relations ships with all creditors and more so because more than half of them were funded by credit card companies themselves. These programs can take anything from 4 – 6 years to complete.
Also, many of your future lenders and creditors are going to see that you enrolled in a credit counseling program, and are basically going to think that you cannot handle you finances well.
Negotiated debt settlement, basically saves your money in an escrow account and then makes lump sum settlement payments to each of your creditors ONE AT A TIME. I cannot stress that enough. Most people do not understand this concept, as while you are saving money, no payments are bieng made to the creditors. This will definitely impact your credit. But you have to look at it in a sense that you take this time to get rid of your debt completely, and you can repair/recover your credit after you have gotten the debts paid of. Debt settlement programs take about 18 tp 36 months to complete, so you are looking at a definite timeline to eliminate your debts.
Keep in mind that both these options will only work with credit card debts and not your student or auto loans.
The third option is to get another debt consolidation loan, but given your limited income and high amount of debt, I doubt that you will be successful in getting approved for a low interest loan for 25K (which is what you need to get all your credit card debt into one loan.
You can also try to consolidate your student loans seperately.