I want tο explore аll mу options before filing bankruptcy. I саn afford mу mortgage payment, mу car payment, аnd mу house bills (utilities, cable bill, etc) bυt саnnοt afford tο pay mу credit card bills аnd loan bills.
Hοw саn I gο аbουt finding a gοοd non-profit debt consolidation firm thаt саn hеlр mе? Jυѕt using google isn’t cutting іt, аѕ thеrе’s thousands.
Hеlр appreciated.
The lifeplanz is spam, I got that answer for an unrelated question.
I would say try to call creditor yourself and workout a payoff. If not just search debt consolidation. It really depends. If it is student loans they usually cant help you due to Sallie Mae having blocked all options other than death for repayment.
If its credit card or any other debt the financial environment we are in they are so desperate they are willing to take wahat you can give, usually 50%+ off original debt.
NFCC is a non profit organization that was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debt. . . and who may by considering filing for bankruptcy. They can offer reduced payments and interest (but NOT settlements for less). http://www. nfcc. org
As a general rule, they can reduce your total monthly payment down to 2% of your total debt. . . so with 10K in credit card debt. . . your total payment would roughly be $200. They can also reduce the interest to around 10%
- Enrolling in this program involves closing all your credit cards so that you can’t use credit again.
- Keep in mind that this organization is sponsored by the credit card industry. There are times that filing for Chapter 7 may be the best solution when your debt situation is overwhelming. My only concern about this organization is that they would discourage someone from filing for Chapter 7 when they really should.
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Stay away from debt settlement/consolidation firms. They have you deliberately default on your credit cards to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%.
People signing up with debt settlement firms often have the mistaken impression that their creditors will gladly work with such companies. . or that they are obligated to accept settlements. You can never predict how your creditors will respond. . they might settle at 50%. . . or they might serve you a summons, take you to court. .
Depending on the size of your debts, it could be worth looking into your local credit union. Their interest rate is very likely lower, meaning more of your repayment goes to reducing the debt. They also don’t charge penalty fees or suddenly raise the interest rate (credit card companies can do that) and they are run on a non-profit basis. A loan from them can usually be repaid back over 5 years.
One loan could clear the credit card, other loan, perhaps car loan too, leaving one you ONE repayment to make every week. Paying weekly is also better than monthly, as it brings the balance down substantially faster. This is the way I became debt free – one credit union loan to clear another debt – and weekly repayments got me paid off in less than 5 years, instead of a projected 18 years if I left the debt with the original lender, and the interest rate was much lower, which helped.
Go talk to the one nearest you anyway – they might be able to help you solve this without bankruptcy. And you should learn to not use the credit card for now, until you can pay the whole bill in full every month – that way you get continuous free credit and never have to pay interest.