I’m іn thе Air Force аnd I’m buried іn debt. I owe аbουt $30,000 іn credit card debt. I thουght аbουt consolidating аll οf mу debt, bυt mοѕt companies charge 15% οr 20% frοm thе debt amount. Thеѕе companies promise tο reduce уουr debt bу 40% tο 50%. One οf thеіr programs consisted іn mе opening аn account whеrе (аftеr 1 οr 2 years οf depositing money) thеу wіll try tο settle thе account fοr less thаn thе original amount. Now, I don’t know hοw іѕ thаt going tο affect mе οr mу credit.
Hοwеνеr, I’m doing something аbουt thіѕ situation. I’ve bееn calling directly thе credit card companies аnd I’ve ехрlаіnеd mу financial hardships. Mοѕt οf thеm hаνе agreed tο negotiate wіth mе consequently, ѕοmе οf thеm hаνе reduced mу APR аnd hаνе given mе payment arrangements.
Mу qυеѕtіοn іѕ thе following: Shουld I continue tο negotiate wіth thе credit cards companies οr ѕhουld I gеt іn οf thеѕе consolidation programs?
Alѕο, Hοw іѕ thіѕ going tο affect mе being іn thе Air Force?
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This really isn’t an Air Force issue.
Unless you have a Top Secret Clearance it won’t affect you at all.
I suggest that you talk directly to the companies involved. If you can try the snowball technique. That is pay off the smallest card, then apply that amount to the next one then the next so on and on. Another technique is to pay down the highest rate card that you have, then go to the next smallest etc without regard to the amount owed. One of the best things that I can suggest is to try to get one of the no APR, teaser rate type cards and use it ONLY at that time to pull off some of the higher interest card debt so that you could pay it down all that more quickly. I highly suggest that you talk to all the service related services that are available. Also try a book by Suzie Orman. Good Luck.
The most important thing is to have DISCIPLINE. If you cant Destroy the cards and continue paying!
that sounds like a scam; “depositing money in their account for safe keeping”!! Keep talking to the credit card co. ’s and maybe if you’re a good little Indentured Servant they’ll let you stretch your payments out over say, 20 years!!
Charge It!!!
Well, if you’re in the AF you KNOW how this is going to affect you. If you’re an officer or senior NCO financial responsibility is one of the behaviors that is not only expected; it is demanded. I’m not going to sugar coat this-and frankly you shouldn’t be on answers, you oughta be talking to the financial counseling folks on base AND your 1st Sgt/Flight CC.
Consolidation programs don’t work-period. Realize that the contract for the loan, which is what credit cards are BTW is between you and the card company. If the debt consolidator misses a payment-and they do (I had troops try this) the credit card company sends collections after YOU.
If you are in a job, or trying for a job that requires a TS clearance-you’re pretty much done. This history will show up as a red flag: someone who can’t handle responsibility. Someone who needs cash. Someone who is vulnerable to recruitment. Aldrich Ames needed cash too-and had excessive debt.
Get on it, get it fixed.
What will help you is the Servicemembers Civil Relief Act (SCRA). The SCRA was signed into law on December 19, 2003 as Public Law 108-189. The Servicemembers Civil Relief Act can be found at 50 United States Code Appendix Sections 501-593. In your case, here is the subclause text that you can utilise to your advantage;
Under the SCRA, a military member can cap the interest rate at 6% for all obligations entered into before beginning active duty if the military service materially affects his or her ability to meet the obligations. This can include interest rates on credit cards, mortgages, and even some student loans (except for Federal guaranteed student loans), to name a few. To qualify for the interest rate cap the military member has to show that he or she is now on active duty, that the obligation or debt was incurred prior to entry on active duty, and that military service materially affects the members’ ability to pay. To begin the process, the military member needs to send a letter along with a copy of current military orders to the lender requesting relief under the SCRA. The interest rate cap lasts for the duration of active duty service. The interest rate cap will apply from the first date of active-duty service.
my husband is in the air force and years ago we were about 15 grand in debt and we used genus or genuis credit management to help with our debt they cut the interest they didnt close the account but basically cut the interest in half and we paid genius. . and they paid the company. . . it didnt affect his military career at all. . . but it did give us a slightly higher interest rate on a car we bought. . . since then we got out of debt totally other than cars and a house. . . no credit card bills. . . we did not pay anything for two years into an account though so im not sure what kind of company you are looking at. . our interest reduction started within three months. . . but reducing your debt by 40 to 50 percent sounds like they are charging off your debt and you will pay for that in the long run with higher interest on cars houses etc.