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.