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mndfreeze 
Shroomery Secret Service




Registered: 04/22/02
Posts: 20,529
Loc: PuppetMasterFlash
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Debt Consolodation
#7831589 - 01/04/08 11:09 AM (16 years, 28 days ago) |
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After being out of work for almost 7 months I pretty much destroyed my credit and have run myself madly in debt. Trying to rebuild but the numbers are far to high.
I dont think its bad enough to declare bankrupcy of course, but I was wondering who has information on those companies or services that do debt consolodation and help you cut debt and rebuild. I've heard so many varied stories about if they do or do not ruin your credit score even more, if they actually cut the amount of debt or just put it all in one lump bill, etc.
-------------------- Nothing says love like grannies prolapsed anus! quote]Urb said: I know... Its fucked up... Ill fix it minyana..[/quote]
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Asante
Mage


Registered: 02/06/02
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Re: Debt Consolodation [Re: mndfreeze]
#7831643 - 01/04/08 11:28 AM (16 years, 28 days ago) |
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Sorry to hear that man..
I don't have advice but
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unbeliever
Yo Daddy!


Registered: 05/22/04
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Re: Debt Consolodation [Re: mndfreeze]
#7831922 - 01/04/08 01:23 PM (16 years, 28 days ago) |
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Add me to the advice seeking column. I've also heard mixed things about those kinds of places. Nobody here has any experience/suggestions?
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geokills
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Re: Debt Consolodation [Re: mndfreeze]
#7831996 - 01/04/08 01:37 PM (16 years, 28 days ago) |
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I am not terribly familiar with debt consolodation companies themselves, but if you still receive any offers for low introductory-rate credit cards, you can consolodate your own debt by transfering your current balances on your higher rate cards to the newer and temporarily low-interest or interest-free card. It's not a complete solution, but it can stop the bleeding in the short-term while you figure things out on the employment front.
Of course, if your credit is truly destroyed at this point, you won't be automatically receiving low-interest offers from the credit card companies but you can still call them yourself and solicit them for a low introductory rate and balance transfer option. If that doesn't work, I think a debt consolodation company would be the way to go. They'll basically do for you, what I'm suggesting you do yourself... transferring your balances to a lower interest rate "loan" of sorts, so that the current creditors will get paid off and you only deal with the creditor who consolidated your debt. It is very unlikely that they will actually cut the amount of your debt, but they can seriously reduce the rate at which your debt is growing on account of interest.
I don't believe debt consolodation will further hurt your credit score, so long as you make payments on time... but as noted at the beginning of this post, I don't have direct knowledge on the matter. You definitely need to get out of your high interest rate debt though, one way or another!
Good luck.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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Liz
Owl Lady




Registered: 11/16/04
Posts: 6,962
Loc: Massachusetts
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Re: Debt Consolodation [Re: mndfreeze]
#7832272 - 01/04/08 03:04 PM (16 years, 28 days ago) |
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I can help with this!
Debt Consolidation companies do typically show up on your credit - but I don't think it impacts your score negatively. However, perspective lenders will see something along the lines of "consumer is enrolled in credit counseling". To some, that is a red flag that you got in over your head.
Your first step should be pulling a copy of your credit report - a tri-merge copy, that includes all 3 bureaus. Identify the debt that looks the WORST on it (highest balance, most late payments, or past due, etc). Call them and tell them you got laid off and want to settle your debt, but need to set up a payment plan. Play hardball with them, and tell them you want to make it right, but don't have the money to keep paying interest. They just want money, and if they think they're going to get nothing if they don't work with you, they will. Sometimes they will settle for pennies on the dollar.
Good luck!
-------------------- Remember, remember the fifth of November The gunpowder treason and plot. I see no reason why gunpowder treason Should ever be forgot.
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Liz
Owl Lady




Registered: 11/16/04
Posts: 6,962
Loc: Massachusetts
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Re: Debt Consolodation [Re: Liz]
#7832283 - 01/04/08 03:08 PM (16 years, 28 days ago) |
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Also, it should be noted that opening a new credit card and transferring balances will further impact your credit. Any "new" credit cards impact your credit when you automatically put a large balance on them, and have many open tradelines.
-------------------- Remember, remember the fifth of November The gunpowder treason and plot. I see no reason why gunpowder treason Should ever be forgot.
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mndfreeze 
Shroomery Secret Service




Registered: 04/22/02
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Re: Debt Consolodation [Re: Liz]
#7833772 - 01/04/08 09:55 PM (16 years, 28 days ago) |
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I'm well past getting any more cards. I know I'm under a 550 at this point, I'm sure FAR below that.
A few years ago a friend offered a name and number to someone who specializes in fixing credit. You pay him like 500 to 1000 depending on the damage and he basically fights it like mad and gets temp holds on your score and all sorts of shit so yo can qualify to buy a house or a car, etc. However I dont know what 'business' tha would be. Anyone have any ideas?
Thanks Liz! did you mean call the 3 credit agencies or the creditors to haggle?? I cant imagine the credit bureaus care about me paying my debt off or not. 
But basically, I have a LOT of debt scattered all over i'd like to ideally rip to a percentage of the real debt, then have a easy payment method to get it down.
-------------------- Nothing says love like grannies prolapsed anus! quote]Urb said: I know... Its fucked up... Ill fix it minyana..[/quote]
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Liz
Owl Lady




Registered: 11/16/04
Posts: 6,962
Loc: Massachusetts
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Re: Debt Consolodation [Re: mndfreeze]
#7834021 - 01/04/08 11:11 PM (16 years, 28 days ago) |
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Pretty much any "company" that charges money to do stuff like that isn't trustworthy or reputable. Go through a non profit, if you use one at all.
I meant to contact the creditor directly. Also, any agreements you come to with them verbally, ask them to mail to you, or fax to you immediately. If you don't have it in writing, you don't have it at all. Then, when you GET it in writing, send it to the 3 credit bureaus yourself, so that they update the account accordingly on your report.
-------------------- Remember, remember the fifth of November The gunpowder treason and plot. I see no reason why gunpowder treason Should ever be forgot.
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Effed


Registered: 05/15/02
Posts: 7,370
Loc: Daylight Slavings
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Re: Debt Consolidation [Re: Liz]
#8082921 - 02/28/08 07:01 PM (15 years, 10 months ago) |
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I use a company called Debtwave who does a good job, they got my interest rates to reasonable amounts and I pay them $30 /month and I pay them on amount. They are non-profit. http://www.debtwave.com/index.php At the rate I was going with separate card I would not have paid them off until I was 90 so I like this program I have a little over a year left. The best thing you can do for debt is focus your money on it foremost after your necessities and cut the bullshit spending. Good luck you are not alone.
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