SRS Debt consolidation

Discussion in 'On Topic' started by bustav13t, May 4, 2008.

  1. bustav13t

    bustav13t New Member

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    The story in a nutshell is that I was stupid and went on an impulsive spending spree with 3 of my credit cards, lost my job and I'm having a hard time keeping up with the payments on my credit cards. I'm looking to have the debt consolidated into one monthly bill and the question is which company is the best company you guys recommend for me to use?
     
  2. Coottie

    Coottie BOOMER......SOONER OT Supporter

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    I used consumer credit counseling service. But you should know, if you do debt consolidation:
    • They WILL put this on your credit report.
    • Future creditors WILL question you about it/not give you loans.
    • It will stay on your report for 7 years.
    • You don't even have the protection from creditors like you do with bankruptcy.
    • You cannot get this off your credit report even if you pay off all the debt.
    And no....none of this was explained to me before I got on their debt management program. But at the time, I was desperate and about to have to file bankruptcy and this program kept me from having to do that.

    I've since learned that I could have negotiated with my creditors directly and kept it off my credit report.

    So CCCS is the company I used and I wouldn't recommend anyone else. If the company refuses to pay and/or runs off with your money, you'll still be responsible for the debt so check with your local better business bureau to help ensure they're a good company. Do your research carefully.

    Anyways, good luck.
     
  3. JordanClarkson

    JordanClarkson OT Supporter

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    If you don't plan on buying a house within the next 7 years, you have the option to cease all payments while keeping the accounts alive. You can always negotiate to pay only the actual amount that you charged and none of the interest. I racked up a lot of debt in college. Stopped paying in 2000 and started to pay it off in big chunks in 2006. My debt with interest was up to $45k, but I only had to pay about $22k of that. Once paid off, you can get the records removed from your credit report.
     
  4. bustav13t

    bustav13t New Member

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    Thanks guys I appreciate the input. Im going to try the 2nd option of ceasing all payments and pay the amt charged.
     
  5. Coottie

    Coottie BOOMER......SOONER OT Supporter

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    Be careful, you might not like this option. You should fully explore/investigate all implications of your choices.
     
  6. RedDawg

    RedDawg Well-Known Member

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    i'm using Consumer Education Services right now (www.mycesi.org). They consoidated 4 past due credit cards for me and negotiated with the credit card companies for a lower set payment. They take $25 of my $250/mo payment but its well worth it to me to not have to deal with 4 separate companies. If i need to change the payment date or change how much i can pay for that certain month i just call or email CESI and they call the credit card companies to negotiate.
     
  7. JordanClarkson

    JordanClarkson OT Supporter

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    If you choose this route you'll find it difficult to get a credit card. I kept one that I always paid off on time and that's the only one I still have. You can't finance a car either. And renting a house can be a big problem, but sometimes offering to put down 3x the deposit or paying the entire year in full helps. It'll keep your credit crippled, but it'll buy you time.
     
  8. eXyle

    eXyle ׂ

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    another option is to contact your credit card companies, inform them of your situation and ask that they lower/eliminate your interest rates and reduce minimum due amounts. choose one card to pay off first (usually the one witht the highest balance) and pay as much as you can monthly on that card while paying the minimum on the others. once that card is paid off, do the same with the next, then the next until you're all paid up.
     
  9. Carl Brutananadilewski

    Carl Brutananadilewski Active Member

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    I work in collections for a department store credit division. Call the companies individually and work with them; you will get better results and save money.

    Call whatever number you have for the collections division at each card, and call and ask for a settlement amount or hardship program. Not all companies offer these things, but it doesn't hurt to ask. For instance, the company I work for offers a short term hardship program that the cardholder gets on for 6 months paying less than the normal minimum pmt. At the end of the 6 months, you pay whatever the difference is (if any) between what you have paid for the 6 months and what the total payment due was when you went on the program. All late fees are waived during this time, and although the cardholder will be reported as delinquent, it will save you money.

    Other programs we have involve matching payments up to a certain point, temporarily reducing interest rates, and settling on accounts which can sometimes be only 30% of the original balance.

    In a nutshell, call the companies first and see what you can work out.
     
  10. KatWoman

    KatWoman •••••••••••

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    Actually you can get it off your report, once your bills are paid off and/or you cease using a debt management company/plan. I have 2 friends who used CCCS and once bills were paid off and they withdrew from the program, they both asked CCCS to get the debt management plan deal off their credit reports and it was done.

    Yes it will mark your credit report that you are under a debt management plan. Yes, some lenders will look at it almost like a bankruptcy. But it doens't blacken your record the way a bankruptcy does. I dunno about other companies but this is what I gathered from from the friends who used CCCS.


    To the OP, I would call your creditors first to see if they will work with you. If you've been good about paying on time and are in good standing, they should be willing to help. I got in over my head about 10 years ago, same thing, impulse buying. I had 5 cards :eek5: I called them and all but one agreed to lower my APR to 7% (the other one 12%) and I promised each one I would pay a certain minimum or more per month and not use the cards again until paid off. Then when I did pay them off I closed off 3 of the 5 acccounts and left 2 open.
     
  11. Coottie

    Coottie BOOMER......SOONER OT Supporter

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    Interesting. I've been off it for about 10 years now and back when I finished up the program, I asked them to take it off and they wouldn't do it. Perhaps they changed their policy. It seriously screwed with my credit for a long time.
    Actually the truth is, bankruptcy is not nearly as blackening as it used to be. In fact, there are an awful lot of lenders that look for people that have recently filed. Why? Because they very often are working people and now, they have a clean slate of debt.....time to send them a new credit card app.

    Here's what was really shocking to me....there are people that are habitual filers. I mean they actually don't wait the 7 years to file again....they file after a year or two. Now the judge should throw out their bankruptcy but that doesn't happen very often. Many times and judge will just not ask about prior filings. It boggles my mind.
     
  12. civicmon

    civicmon got all my game from the streets of california.

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    if you default on your debt it puts a collection mark on your record... common stuff.

    What you'd be surprised with is that if you pay it off, your credit score increase is typically in the single digits.

    So, if you do default, begin to negotiate with the credit card companies or collection agents. They'll take 25% of the balance (sometimes a lot less), minus all their bullshit fees (virtually all of which will be illegal, check your state's laws for the local statues).

    Do it all in writing. It takes work but it's very doable.

    Of course, you can sue a collection agent when they don't follow the rules like I'm planning on doing.. calling after receiving and acknowledging a phone C&D order... good luck with that one, cocksuckers... $1000 pop x 13 for the document violations that I have bills showing have been made = a lot more than the debt I owe. Plus tacking on another violation for overcharging interest based on PA's state statues is another $1000. I'm waiting for my lawyer to get a reply to our offer though. We'll see how long it takes.
     
  13. Coottie

    Coottie BOOMER......SOONER OT Supporter

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    That's a different mark than the one to which I'm referring. When you get on a debt management program, they will put on your credit report, DEBT MANAGEMENT PROGRAM for everyone to see.

    Debt consolidation may or may not be different.....I dunno.
     
  14. civicmon

    civicmon got all my game from the streets of california.

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    Sorry, wasn't commenting on your comments but the OP's idea of just stopping payment entirely.
     
  15. Coottie

    Coottie BOOMER......SOONER OT Supporter

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    No worries mate. :wavey:
     
  16. JordanClarkson

    JordanClarkson OT Supporter

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  17. Carl Brutananadilewski

    Carl Brutananadilewski Active Member

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    Good luck with the lawyer. C&D orders have to be in writing.
     

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