Just thought I’d say howdy

I’ve finally faced my finances in the eye and put together my first budget (at the age of 35). I couldn’t figure out for the life of me why I’m just as strapped now, at $45k/year income, as I was eight years ago making $24k. I’ve never owned a new car, or made payments on one, for that matter.

I drive beaters. I’ll spare the goriest details, but my credit got destroyed about 9 years ago, when I finished college. Also FYI, I didn’t start school til I was 22. When I quit my job and started school, I had a big stack of credit cards, with $0 balance. I left them at home, knowing the next few years I’d not be able to buy crap on credit. I graduated, got a job, and moved back in with my folks til I had some $ saved up for an apartment. One day I got off work early, before my parents got home, and grabbed the mail. Discover card statement? In my name? I haven’t had that card in 5 years. What the? {opening statement} $32,000!!! WHAT THE @#$#!!?? Turns out my mom went nuts and racked up my cards, to the point that she could barely make min. payments. In the meantime, she’d also racked up HERS.

To the consternation of many, I chose not to prosecute her. I was stuck with approx. $78k in high-interest CC debt, making $24k a year (gross). It came down to this: prosecute my mom for fraud, and they’d lose their house, my mom would lose her job, etc., or demand that she repay everything, in which case they’d lose their house, etc. Ugly situation. I took on the payments. Including my own “legitimate” debt, $34k in student loans.

With one of the banks yes

Another one I would basically say not.

The first bank may have committed TILA (truth in lending act) violations as well as attempted to raise my interest rates based on erroneous information.

But merely being unable to pay your debts could be reason enough to contact the bbb especially if the company you are doing business with is a member which you can check very quickly at www.bbb.org.

Hi from a new member

Hi !

i am Naida. i am a 28 year old stay at home mom living in florida! i am glad to be a part of the blog!

i joined last night and read a lot of the posts. i found it very interesting and informative..

here is my situation:

i owe 20 k in unsecured debt. i am current w my bills and can pay the minimums but feel as if i am not getting rid of my debt.

so i am looking for a solution. we just bought a home 2 months ago ( no have no equity in it ). i applied for a debt consolidation loan from my credit union but was denied.. so now i have either debt consolidation or debt settlement.

or i can try to pay them off by myself one at a time.. attacking the highest apr first… with the help of payday loans from my favorite website whoneeds500. i understand that both debt settlement and debt consolidation look bad on my credit report..

so any advice for me? has anyone done this type of debt elimination? what are the good and bad of this ways to get rid of debt? thanks in advance!

have a good day!

A loan is still a loan

Debt consolidation loans are one of those “half dozen on one hand, six on the other” type of thing. A loan is still a loan and requires being paid off in full.

Consolidation of loans to decrease your interest rate is one thing, consolidation so you are paying less each month is another.

Look at it from the point of view of the lender – why would they take on $23,000 of risk by themselves if there was nothing to gain? They are not nice guys doing it for the sake of being good to you.

They know if you are making a smaller total payment on your debt, you will be paying on it for more years. More years equals more interest in their pocket.

In regards to your question, no debt consolidation will not hurt your credit rating because you have the same amount of debt as before with a different lender. Qualifying would depend on your income level, credit rating, and a few other criteria individual lenders use to screen out likely deadbeats.

I have never heard of any perks for school teachers consolidating their loans, but that doesn’t mean they don’t exist.

What does everyone think about debt consolidation loans

What does everyone think about debt consolidation loans? What are the pros and cons? Can this hurt my credit? Lastly, would I qualify?

I have about 10,000 in credit debt, a car loan at 3,000 and a student loan at 10,000. Lastly, are their any perks being a public school teacher when it comes to debt consolidation loans?

I wouldn’t make a deal with them just pay them off

I wouldn’t make a deal with them just pay them off. However if you are going to pay them with home equity loan you are just moving your debt somewhere else. Granted, it is less interest and tax deductible but you have to be careful. If you can’t pay your credit card bills, all they can do is hurt your credit and threaten you.

If you can’t pay the equity bill, the bank can take the house.If you are going to do this the first thing you must do is stop using credit cards. Figure out why you got in debt in the first place and change the way you do things so it doesn’t happen again.Because if it does you will be right back in credit card debt and have the equity loan and no where to turn.

Come up with a good plan to get and stay out of debt and you will be fine.

I would try negotiating with the creditors

I would try negotiating with the creditors as to how the settlement will appear on your credit report and/or how long it would appear on your credit report. I hear this is very hard to do but I am trying to do it myself. Good luck with it.

I fell behind on my credit cards right out of college and settled all of my credit cards one by one…..and I am still suffering the after effects of that decision. I would bite the bullet and pay the full amount on the cards….i didn’t realize how adverse of an affect settling would have on my credit score.

Again I am trying the following tactic to deal with too much credit card debt. I filed a complaint with the Better Business Bureau regarding the banks that I have too much debt with and told them that the settlement I wanted was a debt settlement with no negative markings on my credit report. I am still in the negotiating stage and we will see what happens. I will not settle until there is some compromise on the credit reporting.

Finding this blog so helpful!

Finding this blog so helpful and hoping some of you have some words of wisdom for our situation.

We (hubby and I) have a mountain of debt, life happened, anyway we are falling behind. We are in the process of getting a home line of equity and can pay all the credit cards off with this.

Here’s the question, the credit cards have started calling since we are a month behind on payments. They have mentioned settling for 80%, I’ve heard the longer you wait the lower the percentage forgiven gets. This would free up some money on the line of credit and make the monthly payment lower. When I mentioned this to the loan consultant she advised strongly against settling as it really messes up your credit score.

What do you guys think? Settle for less than owed, or pay back the whole amount and struggle for a while longer.

I have read your situation and here’s my 2 cents

You already have the equity loan so the 10,000 is in your pocket now.

Call your lien holder and get your payoff on the SUV. It is going to be less than the 10,000 you owe on it. It might be 1000 or 1500 less because of the interest. Pay it off with the 10,000 and then sell it outright to a dealer or private party and get a new car. I would suggest you look into a small SUV 4 door just for the protection and comfort or your wife and child. You can get one of those for 18-20 thousand, and for the 8 or 9 thousand you have in your pocket (after selling your old SUV) you would only be making payments on 10 or 11 thousand of it.

You would have a new car, smaller, less expensive and better gas mileage. Lets face it in today’s world house payments and car payments are just a fact of life, minimize them as much as you can, but unfortunately they will always be with us, well for most of us anyway.

Good luck!

Receiving Statements

Anybody know how to get a CC company to send the monthly statements to me so I can verify that my DMP is making payments? I have contacted each of them at least 6 times via certified/return receipt mail and although I have gotten the return receipts back, I haven’t rec’d any other correspondence from the CC companies.

I think that if a credit card company will not cooperate with your needs check if they are a member of the Better Business Bureau www.bbb.org and file a complaint against them. All of this can be done on the Internet. I have already done this to facilitate and negotiate a debt settlement with two companies and the bbb has contacts with the executive staff which should get things done. They MUST cooperate to maintain their membership with the bbb. You can also try this even if they are not a member.

I never thought that using equity to pay off something was a good idea

I never thought that using equity to pay off something was a good idea, either. However when we were getting financial counseling he pointed out that our auto loan is too high and our house has all this equity in it. He advised us that our interest rate is so low on the mortgage that we do this and then pay the payment we were paying on the auto regularly and combine it with the mortgage which is scheduled bi monthly to get the house paid off quicker. So many things about financing are based on your family situations and realize this isn’t necessarily an endorsement for everyone to do this.

However, in the financial advisors position this is a good move for us. He said just to sell the car and then put that money into the car. But if we are still paying the “SUV” payment back into the mortgage I don’t know how that works. That is why I was asking the question.

Thanks for your valuable input. It is nice to know that other people ponder these same life situation questions and we have a forum to discuss them.

Was there something else you were hoping for?

Was there something else you were hoping for? It seems like you only have two options. Either keep it or sell it. You can either spend the money on gas or sell it and buy something with better mileage. I can’t see any other options unless you want to get further in debt, and that is usually what we

I have been pondering this same thing and good luck finding someone who wants to buy an SUV right now. I talked to 2 dealers and they are having problems moving SUVs secondary to the gas prices.

I had the same problem with some of my debts that had been turned over to collection but none of the CCCS or DMPs I contacted refused to take my case. They did say that some collectors are very difficult to deal with and they are not req’d by law to participate with CCCS’s. I was advised to continue to contact the collection agencies (in writing, certified/return receipt) and just continue to tell them all I could afford is x dollars, otherwise I was prepared to file bankruptcy. I would also contact some other CCCS’s for their input. Just out of curiosity, which CCCS’s did you contact?