Debt Counseling

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Do they really help you....I am about to join this lawfirm under credit counseling of america to help with my debts. I am a little skeptical because they say they will work my creditors, collect monthly payments and deposit into a trusted account, and in two years then pay the creditors off... Does Consumer Credit Counseling of American for reals???

Best Answer

I suggest you contact your creditors and see what they can do for you. If it's a few dollars off, I suggest you do it yourself. If the counseling company can save you more money, then I would go with them. I went with a consolidation company, with my situation, it took me longer, but saved me more per paycheck....

So I owe about 12000 in debt for credit cards, the accounts are in a debt consolation company which I'm paying about 400 a month to clear the debt, I recently came into $8000.00 and I want close the accounts and pay them all off. IS there a way I can negioate with the creditors to lower my balances since I'm paying it off?

Best Answer

Generally if you are current, companies will not settle on the account. You actually have to be behind before they start to make arrangements. Since you are on a program currently you are considered current so they probably will not accept a settlement. However, there is nothing that says you can not ask and see what they will do. If you do get them to settle for less, any amount over $600 you will receive a 1099-C and it is considered unearned income. So if you had a $5,000 debt and they settled for $4,000 you would owe taxes on the $1,000 You might be better off to pay off as many of the accounts you can with the $8,000. Then continue to pay the $400 a month on the remaing cards. Since you have less cards you will be paying more on each one so those amounts will go down faster.

I have been having some mental health issues for the last year and have been on short term disability twice. When I return to work in April I'm pretty sure I will be fired. My question is, I bought a house 3yrs ago I owe 104,000 and could probably sell for 140,000. After fees and repairs ect I would make 30,000 which would pay off my other debt. I could also let my other debt get behind and keep up on my house payments then declare banckruptcy. Could I keep my house then? I could probably get a less mentally taxing job that I could pay my mortgage with. Or should I try to go through one of those debt counseling places? I know I am still current with my bills right now, but this keeps me up at night. Oh, and I do have a friend I can stay with for a year if I sell my house.

Best Answer

Is this your dream house? If so, then do whatever you have to do to keep yourself from losing or having to sell it. If you can imagine yourself buying another home in the future and being just as happy, then, sell it before it is too late. make some money off of it, pay off your debts. Live with your friend for a while, get your life together and start over. I hope this helps. Good luck.

How long after my debt has been paid will the creditor remain on my credit report? Will it automatically update to being current and paid? How long will the phrase, "managed by a consumer credit agency" appear on my credit report after my debt has been paid thru a debt counseling program?

Best Answer

it stays on there for up to 7 years after its been paid.. and is removed after the 7 years are up..

Many people have different views on getting help to pay debt thru a debt consolidation program. Some say it's a con some say it's good. I am currently with Care One and was thinking about stopping I have about another 2 years with the program. Any advice as to how to stay on top of my debt and actually pay it off, if I discontinu the program? Card 1= 408 Card 2= 3,000 Card 3= 2,500 Collections= 180 Serious answers please

Best Answer

This calculator applies basically the same principles debt couselors use. It gives you a monthly payment schedule (click 'Show Amortization') and can be printed using the printer icon at the bottom. If you have the self discipline to do it yourself, this is all you need. http://debt.bizcalcs.com/Calculator.asp? Calc=Debt-Elimination Best of luck to you.