Feb 06

A consolidation loan with good terms may work

Well a consolidation loan with good terms may work for you as long as you are going to continue applying every dime you can towards that loan even if the payment is cheaper. But before you do that I would be documneting all your debts and just start applying the extra money to ONE at a time. Dont spend a dime extra above the minimum on anything except the one you are focusing on, you will see that your debt will start disapering very fast.

The biggest problem with debt CONsolidation is the fact that we (yes, me included) do not change our lifestyles. Within a few short years we have run the credit cards back up and still owe the CONsolidation loan. That is why many will suggest cutting those cards first and never use them again.

Thank you both for your replies. I have heard of the strtegy of paying off one at a time and just doing the minimum on the others (I have heard to do the one with highest interest versus the smallest amount, how does one determine?)

Here is the problem I run into with that strategy Though I now have 3000 extra to pay toward this debt (across say 10 cards)the money I have comes in bi weekly, and the bills come in across all times of the month

So once I pay the minimum on the ones that come in the beginning of the month ,cause the MAIN One Im focusing this month is coming in on the 15th. However the “every dime extra” is not all in yet, cause its only the 15th, and If I DONT Pay what I have on it, it will be late and I will get a charge and then my percentage rates had shot through the roof, when I was delinquent (by a few days) because of this “creative” strategy”.

Its more of a money flow thing and scheduling thing. I am very committed to paying, and it is very frustrating cause if anyone ever looked at the debt, and the effort I have made every month to pay it off, (NEVER IGNORING A BILL.)

Do card companies agree to send payments at a specific time a month? It would be VERY helpful actually if they came in ALL at the same time, due at the same time.

Maybe I could request that.

What is bad about Debt Consolidation? Also, what about those ads to Debt Negotiation? Though I believe I called on one of those once and the fact that I DID pay my bills and debt collectors were NOT calling me, seemed to eliminate me from that option.

Again, I thank you for your insight and advice. Please advise on the strtegy of Highest interest rate versus smallest bill (As I have a huge balance on a card with a medium interest rate and a smaller balance with a higher interest rate, but actually the lower interest rate card with bigger balance is “costing” me more..does that make sense?)

Sep 16

They will not lower my rate or my payment

debtsI have MBNA which I seen another posting about they are not working with me at all!!! they will not lower my rate or my payment because they said my budget doesn’t fit it in. So I said you are just pushing me into bankruptcy they don’t seem to care. I have never missed a payment yet!! and they are horrible!!

Horrible yes!!!

You must understand that a bank is business to keep you IN DEBT. Anything that helps you get out of debt – or in control of it – is antithesis to what they are trying to accomplish.

No bank will work with you unless you force them to, like falling behind in payments or doing BK.

Of course, this hurts your credit…which the banks love, as they then can raise your intersest rates to 30% or more.

You must understand as well…that banks sell us on the idea of quick, easy money and that borrowing is the way to get rich. It is NOT.

Did you know that banks have NO debt. So if debt is so good – as the banks tell us – then why are they not in debt? Because, it only helps the banks for you to be in debt. They know that debt is NOT helpful to them is they have any.

Learn and do what the banks do and you will be come rich. Do what they say and you’ll be where you are now.

I would like some insight on Debt consolidation. Over the last 5 years I had accumulated debt(due to MANY family circumstances). I have been very fortunate to have made a career move which has now given me a significant increase in pay. I had a moment of accomplishment and even a glimpse of financial freedom , as I felt as though I could FINALLY pay off these haunting bills I have been (even with lower income) reliably paying every month , typically much more than minimum, but to no avail.

Now that I feel I have the financial means to truly conquer this, I have so many debts across so many cards and the interest rates are just astronomical. I am trying to research an option , preferably a personal loan, where I can pay 1 entity the money back and let THEM make the interest gain. There are so many companies that pop up once I do a search and it is so overwhelming to sort out what is a scam and what is not. Ive tried balance transfers, but find that takes alot of due diligence to keep track of, and with 2 businesses, 3 kids (1 with special needs) I just dont want to default and make an error Is there any reputable option someone here can refer me to?

I have 25k in debt and have 3000 a month now extra dedicated to pay the bills off there has to be an option , as these finance charges are like throwing money in the garbage. I do NOT want to refinance my home. So, just keep paying all your extra money towards your smallest debt..Once that is paid off work on the next smallest one.. Keep going the route. You don’t need anyone to help you out of this, you’ll be done with all this in a year.

You can’t do anything about finance charge until you start paying off the debts…You have a huge shovel with 3K each month, trust me you’ll be fine. If you have some really high interest rates, you may be able to look at transferring those balances to a smaller interest rate card, but with your 3K a month I think you’ll be just fine ok!!! Thats my opinion….

Jun 16

Debt Consolidation

I am sure this has been clarified… can you explain the myths?/facts? that working with such companies can damage your credt score instead of being a +effort to get out of debt. Anyone care to suggest a company to work with that has testimonials to back? Thanks

That’s Right for most of the programs. I have seen some that will accept as low as $7500. You just have to pick the one that is right for you. I had no problem finding one, cause we owed SEARS $10,000 alone. Whatever you do just make sure you are not exchanging unsecured debt for secured debt.

Does anyone know about “The Freedom Point” for debt consolidation? I have 10000. unsecured debt – two of the credit cards are b/w 25-30% APR. Help!

If your planning on doing this I would tell you to go to Career Credit Counselling first. I tried one of those fly by night companies that never paid my debts and kept my money. You can also try talking to the cc companies and work out some sort of deal so that your interest rates will be lowered. Usually if they know your trying then they will work with you more.

I read a really good article a few weeks ago about the pros and cons of ccc’s at bankrate.com titled “Be Careful with Debt Repayment Plans.” I had contacted one of them recently (nccc)to see if they could help me with a debt management plan. They couldn’t, and a lot of money was involved, I was surprised. Here is the link to the article.

I worked for Freedom Point Founder Bernie Dancel for a number of years. It is an alternative to filing for Bankruptcy. They do help you out and do get you back on track, but please be aware is does not happen over night. Here is what they do

First you give them your income and expenses then You give them all of you unsecured debt. Total balances, minimum pymt due. What they then will do is tell you an amount that you will need to pay every month. They will then submit a proposal to each one of your debts – The creditors will then agree on the payment proposed or ask for more money anywhere between 1-25 each dollars a month – Once they have agreed to a certain amount some of the creditors will either reduce the interest rate or eliminate them completely – waive all late fees and over limit fees. This will take place after you have made 3 consecutive payments and should appear on the forth statement.

The key is to continue to keep making pymts on time every month. And since Freedom point does NOT receive your statements- you need to monitor them yourself and once a bill is paid off in full then apply that pymt to the next bill, but also to see if they are giving you the benefits that they agreed to. My mother was in debt to tune of 75K I put her on the program 4 years ago- she paid them all on time every month and Completed the program.

I just became debt free about 2years ago. I feels great. I negotiated with my creditors on my own and came to terms that we both agreed upon and kept on it every month. My goal was to become debt free by the time I was 30. I bet the goal I became debt free at 28.

Mar 06

CC Interest Rate Adjustment Ltr

debit cardsHello All. Does anyone have a sample letter to send to CC companies about lowering the interest rate?

All you have to do is call them on the phone… I never send them letters , I call the customer service number directly.

If you have not been a stellar credit card customer in the past, they may not lower your credit card interest rate. It never hurts to ask.

Here is what I did this weekend, I CALLED my credit card company.

I told them that I have been getting many very attractive balance transfer offers from several other companies but wanted to give them a chance to see what they can do for me before I went through the headache. I did not throw rates at them, any reduction is a good thing.

They lowered my reate from 11.3 to 10.3 not bad for the first call and I will call again in 6 months and do the same thing.
And on top of the rate I had a special rate of 4.99 on some other balances that will go away ( thank goodness) next bill as i will have paid that portion off. Now it is time to rock the rest.

That’s great. It’s on my list of things to do this week.

thats definetly motivating….thanks!

Feb 04

Mortgage loan modification question

Hello everyone,

I have a subprime mortgage loan and am keeping up my my payments. My house was not expensive – I currently owe $110,000 on my mortgage.

Even though the interest rates have been lowered by the Fed, my ARM just adjusted upward. I spoke to my mortgage company, and they suggested I request a loan modification to request a lower interest rate, and provide them with a new financial statement.

My question is this – how can I increase my chances that my loan modification will be approved?

Right now, my FICO score is poor – lower than when I first applied for my mortgage (though I am diligently working on paying off my debts, or at least becoming current). So if they go by the FICO score in their decision, it will cause me problems.

Are there strategies I can employ in applying for loan modification, so that my request for a lowered interest rate would get approved?

Many thanks.

These are my thoughts. I too am going for loan modification. Not because of just wanting a lower rate. Because of possible foreclosure. The banks would rather honor a lower rate than to end up selling your property in the end because of foreclosure and your inability to pay. So I’d say you have everything for you and nothing against you! Good luck!!!

I never thought of it that way. Thanks, and best of luck to you as well!

Thisi s a wonderful thought, good luck and keep us posted, I’m in the same boat! I will be at 16 % in June with a 102,000.00 loan. ha…right…something has got to give.

Jan 15

Credit Score and Relationships

This hit close to heart….. I have a very dear friend whose credit score before the Fico changes was 740. She had late pays, a repo, you name it, due to debt incurred for her divorce. It cost her quite a lot ($10,000.00+) to free herself from her ex, and he has not paid a dime since the divorce over 2 years ago. Anyway, she met and moved in with a man last year. Recently, during his drinking times, the problem has arisen about credit.

He equates credit score with love. She heard repeatedly that she was supposed to have her head on straight, good finances, blah, blah, blah. When the worse finally came to be, she had obtained her score and showed him. The change in him was amazing, to say the least. Me, I would dump him in a heartbeat. If my credit score (which is not good) was chosen over love, then I don’t need him.

It’s interesting you say this lol. I know a guy that was getting in a relationship explaining that it was a business relationship as well, which seems very cold. A relationship should be strictly out of love, trust and so much more…and I agree..but there’s also a fact out there that the number one reason people divorce is due to money. It just puts so much stress on couples, it’s really sad when you think about that. I truly think that couples should talk about finances and whats important to them. This is one subject that I think most people don’t talk about.

My wife had 8 credit cards when we got married,and I had no idea. She didn’t want me to know, but it wouldn’t have changed my mind about our relationship. My wife wanted to pay her debt off and didn’t want me to help in any way and trust me, I tried. She said she had the debt before we were married and it was her responsibility, so I thought that was very classy and I respected her for it. But money can rip couples apart if one’s a saver and one’s a spender… I think it’s important to be on the same page and have the same goals. Just my two cents….