Help with Credit Card Debt

My friends went with the debt consolidation and ended up being worse off then they were to begin with. You are better off to go with a line of credit if you can.

Typically if you use a debt consolidation company they are able to lower the total amount you owe before you even make your first payment. Go to goodsenseministry.com and check out their Freed-Up Financial Living information. This was an excellent seminar offered by my church. There is a DVD that you & your husband can watch and a workbook to assist in learning a new way to manage your money. It's simple & I would highly recommend it to anyone.

Hi V.
Last year I consolidated my $10,000 debt
via a really awesome family credit union.
Doing so lowered my total interest rate immensely,
and my monthly payment, now is all done with ONE check;
it's never a shuffle of "when is this one due,
when is that one due."
Also my monthly payment to the CU
is lower than my totals were before
(though, whenever possible, I pay higher amounts,
to reduce my balance).
I'll be paid off ALOT sooner than I would have
with the continuously rising credit card rates
(and those irksome irregular pay-by dates).
I also suffer no penalty if I pay it all off early.

My CU advisor did three way calls with me
and every one of my creditors,
guiding me to ask the questions
and getting the answers I needed to know.
It was painless, fast,
and ultimately, I felt silly
for not having done it all
so much sooner!

The key to the successful outcome
is keeping the payments timely
and maintaining a pay-as-I-go practice
in all other areas.
If I have the need to use a credit card
(Sears offered a discount with the card
which was a benefit when I really NEEDED a mattress)
I put aside the ENTIRE amount of cash
and paid it IN FULL right away.

I mostly just keep the credit cards at zero though.

We've done both. They worked for us but now we are using GHS Solutions and we combined our debt. We are saving over $400 a month now. We really need it to put towards our mortgage. We are still trying to get approved for the Stimulus Housing Act (big joke as far as I'm concerned). I went back to work (2 months ago) after being a SAHM for the last 4 1/2 years. It's only part time but it's something. My hubby took 2 paycuts and we can't live pay check to pay check anymore. So we had no choice then to consolidate debt. I think this huge wake up call will make us think before charging things in the future. Good luck finding the program that works for you. Sorry to ramble on.

Do Not use a debt settlement company (which will very often be a law firm). They are in it for your money. They tell you that they set up payment plans, make you sign up for payments for 2 to 5 years, then maybe in 2 years have enough for a settlement on your cards. They are taking your monthly payments and probably putting it in escrow, til they have enough for settlement. In the meantime, your credit has been trashed, showing 180+ past due and charged off. The balance on your cards has increased immensly due to past due fees, over limit fees and increased interest rates. The creditors are calling you daily to try to get payments. Then it is a gamble as to weather or not a settlement will be available.

If you are having troubles, I would suggest Consumer Credit Counseling Services or some other NON PROFIT company. This will also effect your credit but not as much. These companies will negotiate a lower interest rate for you and try to get payments reduced. You won't be able to use any of your credit cards again. The accounts will be closed.

You could do the equity line, but then you are putting your home on the line...If push came to shove, Bankruptcy would be better than loosing your house.

If you are behind on your bills, you can contact your credit card companies to see if there is something that they can do to work with you. They may be able to lower your rate (which would reduce monthly min pmts) or stop some late payments.

Good Morning V....

I wanted to let you know I just started a program with Family Life Resources.. They are a Christian non-profit agency that helps determine whats the best way to go.. They have an amazing debt management program where they work directly with the creditors...They have many other programs avaliable depending on your personal situation. they are located on E.Fowler in Tampa past USF.... They will do a phone interview or you could go in person which ever you feel more comfortable.. Their website is www.flrministry.org... I would recommend not going with a equity line....Best of luck. YOu can find their number on their website.
God bless
~C.

Do NOT go with a debt consolidation company. They will rip you off. I contacted one of them, and they guaranteed to get my debt down to 40% after 6 months and after paying them $1600. for my $58,000. I sent the contract to my pre-paid lawyer,and she said not to sign it. They would get me hauled into court for not paying the bills. If you have a home on which to get a loan that would be better. I talked with the lawyer about bankruptcy, and she said bankruptcy is to protect assets (like your home), and since I had no assets to protect, it was not wise to pay for bankruptcy. After a year or so of not paying the bills, the companies gave me better settlement offers that the negotiating company. I settled with one of them for 20% of my bill.
L. Congdon ###-###-#### for more information, such as about pre-paid legal insurance.

Try this website. I think you can call a counselor and get this type of question answered by a pro without having to commit to anything...

http://www.nfcc.org/

I've done both. They both have their downfalls. The line of credit can get you into even more trouble than you are in already and it doesn't come with a fixed interest rate so you could end up with payments you can't afford. I went with a debt consolidation company once I got my cards paid down, but a couple of the cards trashed my credit for going that route (keep in mind this was 10 years ago).