Debt relief programs?
November 4, 2010 by admin
Filed under Student loans
My husband and I just did a major construction project on our house to make room for our five month old. Because I don’t work, but now will have to a few nights a week to help out with finances, the increase of our mortgage to cover the construction, credit card bills, Student loans for the both of us and the cost of a new baby really has made things tight. We’re looking into debt relief programs where they’ll get rid of the interest rates and lower the balances. I spoke to our accountant who does our taxes and said they’re perfectly legal, but I wanted to hear other people’s experiences with them. I know it will negatively affect our credit scores for a while, which is fine because we’re cancelling the credit cards so we don’t get into this mess again, but how badly does it affect it? Was it worth it for you to do it? We’ll be saving $300 a month by doing it, but I hope the benefits outweigh the negatives.
kemperk, unfortunately that’s not so easy. Not only do I have a five month old, I also have a 7 year old. While we want control of our finances, we didn’t have kids so their grandparents or daycare centers can watch them while my husband and I work 2 jobs each. This was something I thought could help us out, although I know it’s not fair to others who are paying their debt in full. I just don’t know what’s best.
Legal is correct but it missed the point.
Is it fair?
YOU have a house, cars, credit
cards, etc.
Why not live on soup and eggs/beans for 1 yr to get the debts paid off?
IT is what I did!
And if feasible, get rid of the cars;
take the bus to work.
To ask a creditor to take less than
the agreed amount is unethical.
Work 2 jobs each for 2 yrs to get
rid of the debt. And when you
begin paying off everyone–try to make
2 payments a mo–the regular
payment and then ask the entire
amount of the 2nd payment to go only to the principle!!!
in 2 yrs, you will have all your
excess paid off and can start eating
fair again.
Thus, NO Christmas gifts this year;
wait 2 yrs!
[i am on a new diet to keep me from
getting a specific disease. I can skip
the exercise and diet but then,
I know the consequence!!!]
I am currently enrolled with Credit Guard of America. I disagree entirely with the previous answer. I did not agree to pay the outrageous fees and rate hikes that the creditors ended up charging me. I agree that I made a few mistake myself but there’s no way that a person living on a fixed income can beat the current credit system on their own once they’ve fallen behind without selling their soul. I monitor my credit pretty closely and I have not seen a dramatic turn for the worse since enrolling in the program over a year ago. The only caution I would give you is to make sure to follow the program closely! There are certain things that you may have to arrange with the creditors even after the “program” has been set up. And maybe keep your one oldest credit card open if you can. If the balance isn’t too high on this card for you to pay then it can be left open for emergency use and it looks good to have the oldest one on your credit report. If you include it in the program it would be closed. Best of luck to you!
You need to go to daveramsey. com and listen to his radio show. Or find a radio station near you to listen to. He has lots of great advice on money and debt. He also, keeps a 10 day archive of his radio shows on the website. It doesnt cost a dime to listen to the radio.
Okay, I just wanted to say to the first person that answered your question. . . you must’ve skipped over the part where they have a new baby. . . if they both work 2 jobs for two years, when will they ever see the baby. . . And to the asker. . . I don’t know much about debt or debt relief. . . I refuse to own a credit card. But I do know that if things do get so tight that you can’t afford food, please don’t forget that there are food drives availible to you from local churches. And if you feel uncomfortable with a hand out, balance it out by volunteering where you can. In my state there is also something called “Angel Food drive”. . they sell around $50-65 dollars worth of food a month for $25 dollars. All I’m saying is, good luck with your debts, don’t stress out about them, everything will even out with time. Shop second hand stores, garage sales. . . Oh. . I was saying (sorry, lol) If you are comfortable with getting help with little things, than get the help you can. That’s what it’s there for. Good luck!