Debt Management

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I have about 20K in Credit Card debt. I have no problem in making the monthly required payments. I thought about taking a loan and then paying the loan off, but I don't know who will give me a loan that big considering that I only make 30K per year. I have a very descent credit score (above 600). What is my best option to get rid of this debt? I am very skeptical about those debt consoldation companies.

Best Answer

Cut the plastic in half, then set a goal to eliminate both halves. When you find yourself in the hole, quit digging. You need to cease use of the cards, list all the balances highest to lowest. Pay the minimum on those at the top, use a debt snow ball to pay off the smallest first. see www.daveramsey.com

HI, I was wondering if you can help. I have a very poor credit score. Basically I got myself into a financial mess around 2 years ago and had to contact a debt management company. i am now on a debt management plan. At the time i wasn't on a good salary and had nowhere else to turn. However I am now earning double what i earned then and don't feel debt managment is the right way to go for me now as it is not improving my credit rating. I have never missed a payment with the Debt Management Company. They charge me £40.00 per month for using there service. I have 3 years left of the plan but i would prefer to clear my debtors by consolidating meaning my credit would be improved quicker. Does anyone have any advice if this is even possible to do?

Best Answer

Consolidating is a good idea. Most creditors (and their collection agencies) are willing to accept settlements, or a smaller portion of a debt that is owed. Here's one idea: Apply for a loan with a company like CitiFinancial (a lender with more lenient credit terms than most banks) and use the money to pay off the remaining debt. Then pay the loan off using the money you were sending to the debt management company. Your delinquent debts are paid and you're building credit history at the same time. Good luck! Note: Credit entries by creditors can be deleted once the debt is paid, IF YOU REQUEST IT. You don't have to let it sit on there for 7 years. Just remember to ask for a CBR delete and a settled in full letter once you pay the account off.

A debt collector is chasing my friend, she has told them that the debt management comapny are liable. The debt collectors are calling my friend and not the debt management company. Who is in the wrong?

Best Answer

if she has an agreement with a debt management company to pay them and then they pay who the debt is owed too, then the debt collector is acting illegal as they are not allowed to contact the debtor (your friend).

I am enrolled in a debt management programs aka consolidating credit management. I make monthly payments and in 2 years should be debt free. My question is does this debt management progream affect my credit score? I been told if I make my payments on time after the 3rd payment my credit should go back up. I have my payments electronically debt for me so I dont see it. and wonder if anyone else use this type of program and if it did affect your credit ?

Best Answer

Generally if you needed to get on one of these programs your credit score/report was not that hot to begin with. So yes, it should improve your score but how much really depends on a lot of factors. If you were past due or in collections you will now become current with all of the companies. They will note that you are on a DMP on your report. However, while you are on it you should NOT be worrying about your credit score and try to take on any additional credit. You are trying to improve you situation and a DMP program is meant to help, not as a way to just improve your score to take on more debt. Once you have sucessfully completed it in 2 years you will be in much better shape than you are now.

Last year I had an accident and had to stop working since that Ive struggled to keep up on credit cards, 2 months ago I applied for debt management. The 1st months payment they keep as deposit and then the 2nd months payment is split between your creditors, 1 of the creditors has accepted the offer, but one of them wont leave me alone they are saying that I still owe this money whilst the debt management programme is being set up the problem is I have given all my money to this debt management company (DMC) that has told me they will call them and talk to them which I think they do. The problem is this company keep on sending me letters saying that I owe them this money and its got to a Credit Reference Agency. I have called my DMC who have said they are waiting for their first payment (due any day) then they will discuss future payments and that as long as Im making a payment I can afford theres nothing they can do is this true? Im being told one thing from DMC and another from Credit

Best Answer

Hi, these articles might help: Debt Consolidation - Get Out Of Debt http://www.askaquery.com/Answers/qn1643.html How to Hire a Debt Counselor? http://www.askaquery.com/Answers/qn1584.html What is Debt Relief? http://www.askaquery.com/Answers/qn1583.html Debt Management and Building Wealth http://www.askaquery.com/Answers/qn1581