Help Debts

Posts Tagged ‘debt consolidation company’

What is a reputable debt consolidation company?

I have recently lost my job after being in the telecommunications industry for ten years. I have had no luck finding a new 9-5 job with a regular salary. I have been forced to take a job full time at a restaurant.

I have over ,000 in credit card debt most with APR’s in the high 20′s. I have done my best over the last 6 months to keep up with my minimum payments but am finding it impossible recently to balance my debt along with my living expenses. By living expense, I do mean the bare minimums. Rent,utilities, gas, food etc.. I have not wasted funds on entertainment or purchases other than does required for work.

I had an hour long conversation today with a debt consolidation company. It is has been in business since 1965 and is non-profit. I actually used their services in the past to consolidate debt that I managed to pay off about 8 years ago. They analyzed all of my assets, income, debt and overall financial situation. They determined that I was running at a 65% deficit between what I am brining in and what I owe. They recommended that, although it may sound harsh, my best option was to file for bankruptcy. They determined that I would not be able to keep up with any type of repayment schedule that they would negotiate with the banks and that a fresh start may be my best option.

I have avoided the thought of filing for bankruptcy in the past for several reasons. But now that my income is at an all time low and my job prospects do not seem to be sorting themselves out in the near future, I do not now what other options I have available to me. Needless to say, the stress of the whole situation has been making life extremely unpleasant.

I am single, have no kids, and will not be purchasing a house in the near future. The only asset I own, is an 8 year old car.

I have five questions:

1) Other than having a bankruptcy ruling on my file for the next ten years and not being able to secure credit, what are the other disadvantages of filing for bankruptcy?

2) I do not have disposable income. I am making enough to pay for essentials. Would my chances of having the entire debt excused be good? Or would I still be responsible for paying a percentage?

3) I know from my corporate experience that my credit file would be reviewed during the job applications process. I am considering a career with the Federal Government. How would a bankruptcy ruling be looked upon by the government during the job application process?

4) How much with a reputable bankruptcy lawyer cost me?

5) I have also read that another option is to do nothing and ignore my creditors. The following excerpt below is from http://bankruptcy.findlaw.com/ . Is this plausible?

Do Nothing
Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you’re living simply, with little income and property, and look forward to a similar life in the future, you may be what’s known as "judgment proof." This means that anyone who sues you and obtains a court judgment won’t be able to collect from you simply because you don’t have anything they can legally take. (As a famous song of the 1970s said, "freedom’s just another word for nothing left to lose.")

Except in unusual situations (being a tax protester or willfully failing to pay child support) you can’t be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits.

So, if you don’t anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won’t sue you, because it’s unlikely they could collect the judgment. Instead, they’ll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, the debt will become legally uncollectible. And in seven years, the debt will come off your credit record.

I am planning on contacting a bankruptcy lawyer for further advice but wanted to get an idea as to what I am dealing with before I further the process.

I appreciate any feedback the Yahoo community is able to provide!

Thank you in advance!!

I had about ,000 in various credit card/credit account debts that I tried to help pay off with a debt consolidation company (Preferred Financial Services). They’ve agreed to negotiate with my credit accounts and pay off the amounts owed, then I pay them off; they’ve been charging me 1 a month for 3 months. But all the creditors still call me throughout the day.

The Preferred Financial Services company said it can take several months before the creditors stop calling (I interpreted this as, before they even start dealing with the creditors), but I’m beginning to wonder if it would even be worth it to use this debt consolidation service. My house has been foreclosed and I know my credit score will be a huge wreck until that ages off; is it even worth it to try to use this debt consolidation at this point? I barely have enough money to pay rent and utilities as it is, and want to make a choice that makes the most sense.

Thank you in advance for the advice

why in all of america there is not one debt consolidation company that can combine payday loans, do they have the sopranos protecting them

I have debt, and it stands to reason that if you have bad credit, you can’t get a personal loan, so my only option is a debt consolidation company. If anyone has experience with this and used a company that turned out not to be a scam please let me know! Or if you know a company that screwed you over that would come in handy, too. Thank you!!

Where is this company based? I’ve been trying to research them and all that comes up is their hastily slapped together website with no accreditations of any kind. Has anyone else been contacted by them and conned into signing a contract? They claim to be a debt consolidation company,

My advice to anyone with credit card debt getting unsolicited calls from DCC’s is to contact the National Foundation for Credit Counseling. Ignore the calls from these types of people and DO NOT give them any personal info. I went thru their intake and they have my SSN and credit card #. I have yet to see what the fallout will be. Has anyone else had a negative experience with this company? I want details.

What is a good debt consolidation company that will negotiate what you owe by negotiating with the creditor, and then you owe less than before to each creditor, but you owe them for one big new loan , to them for paying your debts?
So they are getting your debts down by negotiating and then give you a consolidation loan to cover the amount owed to them now?

How much does it cost generally to pay a debt consolidation company?

I recently found out that my father had activated and maxed out 3 different credit cards under my name when I was 17 years old. I’m currently 24 and due to what my father has done, my credit is shot. My father isn’t around anymore and I’ve been left to deal with the debt myself. I’ve tried calling the credit card companies to try and resolve the matter but they just give me the run around and tell me to pay off the debt or else. I thought about turning to a debt consolidation company, but my debt isn’t high enough to use their services. I’m not exactly sure who I owe or how much I owe or who I need to pay to get my credit back on track. Does anyone know what I need to do and where I should start?

I was wondering how much does it cost to pay a debt consolidation company to help you, because I want to know if it’s worth it. I’m in so much debt making barely and I don’t know what else to do. On payday I usually just have 100-200 dollars to myself because the rest goes to my bills.