My husband and I have tons of credit card debt - $25,000. One of the cards is connected to our debit account and if we have a negative balance in our debit account it will transfer funds from the credit card. It has become a viscus circle. We cannot afford to make payments on our credit cards, but do so anyways by using our debit account, and when we have a negative balance the CC transfers money (happens 2-3 times a month). We own our home, but have been trying to sell it for the last 6 months with no luck. We cannot afford to make the mortgage payments any more. We are not late on any payments (CC or Mortgage), but we are running out of credit card funds to make our bills. We are basically paying our CC bills with the same CC we%26#039;re making the payment on...
We need to do something fast. Is debt reduction agencies a good way to go? Any advice on what would be a good one. Have you been in the same situation but got out alive? Please help!
Credit Card Debt - Reduction Agencies a good idea?
I think you need to take a long hard look at yourselves. Dont go with the debt reduction agencies as other have said. Talk to your bank - can you extend your mortgage - its the cheapest money you will ever have -can you up your income, get boarders, a 2 nd job , sell stuff Get real before you loose your home
http://lissiearticles.com/how-to-get-out...
Credit Card Debt - Reduction Agencies a good idea?
Yes 118,000 cc debt. Went debt consolidation , after 18 months could not keep up the payment filed BR.
Credit Card Debt - Reduction Agencies a good idea?
I heard from different people that using a reduction agency has a negative effect on your credit score, even worse than bankruptcy. I used an agency about 10 years ago. They weren%26#039;t much help, I mean our payments were only reduced a little but it did keep the collection people off our backs. I didn%26#039;t feel the effects because I really didn%26#039;t have to make any large purchases. Slowly I have been rebuilding my credit. I now have a good credit score, albeit 10 years later. I was able to refi my house at a good rate. good luck
Credit Card Debt - Reduction Agencies a good idea?
AVOID reduction agencies!!!!!
You are a home owner, so know this important point. Weather you refinance in the future or sell your home and look to purchase a new home, your credit will be affected by doing business with a reduction agency. Mortgage lending banks categorize people who entered agreements with reduction agencies just the same as a person who filed for bankruptcy. You may ask how they will know. They know because when you enter to an agreement with them, every creditor that they reduced your debt with, reports that on your credit report. That will instantly put you in a bad position to get a new loan and one with a good interest rate in the future.
Also, know that you pay them a monthly service fee. Over time, the service fee will add up to the amount that they reduced from your overall credit cards. Hence, you will eventually pay the same amount in the end. I do know more than one person that has dealt with reduction agencies and after 2-3 years later, the amount of their credit cards has not made much progress in lowering the new reduced balance started 2-3 years before. In addition, know that most creditors will close your account to reduce your amount owed and avoid a future increase. Consider whether you will need those credit cards in the future or not.
Know that any negotiations they make are no special secrets. They do nothing that you can do on your own. The only difference is that you閳ユ獧e paying them for doing the work that you don閳ユ獩 have time for or are unwilling to do.
Credit Card Debt - Reduction Agencies a good idea?
Be careful! Credit reduction/debt settlement services will deliberately let your accounts go into default to put you into a position to negotiate a settlement....i.e....They%26#039;ll let the accounts go five to six months late....Obviously, this will ruin your credit....Debt settlement MIGHT work....when accounts default...sometimes the card companies accept settlement in the 50% range....Yet there is no guarantee. They are under no obligation to settle and they might actually decide to sue. Debt settlement is a stressful process....As your accounts go past due you%26#039;ll start getting tons of collection phone calls.
If you want to go the debt settlement route...I%26#039;d recommend doing it yourself....just be careful.
Credit Card Debt - Reduction Agencies a good idea?
Facts: These debt reduction agencies will be treated as quasi bankruptcies as far as your credit report is concerned.
Fact: Most are a rip off, even if they have Christian in our about their name. (God doesn%26#039;t do debt work. Read Matthew.)
Fact: You aren%26#039;t%26#039; kids, but act like kids
Fact: If I were a millionaire and offered to pay off all of your obligations if a) you showed me last months budget b) showed me this months budget c) showed me January%26#039;s budget and d) showed me your analysis on why you can%26#039;t stay within budget - you couldn%26#039;t produce said documents.
Fact (the most important one) : If you keep doing what you are doing, you will keep getting what you are getting
Credit Card Debt - Reduction Agencies a good idea?
here is one idea... if you have nemerous differnt credit cards, defer a house payment, or a car payment, then call the smaller credit cards and negotiate a settelment.. tell them you are willing to go 50% and stay firm!! now lets say this gets rid of 2 smaller balance cards (under $1000), now you are going to have freed up the money you would have paid monthly to them so next month do a settelment on the next higher cc and so on till they are gone or paid down.. also if you actually call the credit car companies especially if you are in their collection department they will probably bend over backwards by taking of late or over limit fees to get a payment in. thats how they make their actual take home money so negotiate the heck out of it!! if a collector calls don%26#039;t think this is a bad thing, use it and see what they can do for you!!! good luck!
Credit Card Debt - Reduction Agencies a good idea?
Not a good idea.
I would start with a written budget. Put Food and the house at the top of the page. Along with utilities and transportation. Pay these top four first. If you dont have the money to pay the credit cards. Dont pay them. You need shelter and food and electric/heat.
Take a second job if you have too. Pile cash in the bank. The credit cards will settle with you for less down the road (6 -12 months).
Thats the same thing a debt reduction agency will do. No special skills. they just don%26#039;t pay. and they will charge you a fee to do it.
Go to daveramsey.com and listen to a few of his radio shows. He has lots of great advice on money and debt. It doesnt cost a dime to listen.
Credit Card Debt - Reduction Agencies a good idea?
First, get rid of the connection between your debit account and the card if you can. Second, stop paying the cards, as I am sure they have raised your rate to stupid levels. If they have not done so, they will. Third, no communication with the creditors at all, via phone or mail or computer. Pay your house first, the cards are at the bottom of the list. Fourth, stop using all the cards, and if you don%26#039;t have the cash to pay, do not buy!
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