Bankruptcy Filing Tips

Debt Consolodation What to do and how to do it???

Hello All,
Here is my scenario, I am going through a divorce, and with about 25K in credit card debt (that I am 2 months behind on) as well as a mortgage Payment that I can no longer continue, (due to large monthly payments) and the house is worth 60K less than when I bought it in 2006.
I have the credit card agencies calling non stop, I dont want to not pay but I was 100% commisioned base emplyee and now make a hourly rate (due to the changes in life).
What is the best way to get relief, I am losing sleep, and do not want to have this roll over in my relationship with my daughter (who is 2.5 yrs old) as well my self esteem..

Gary:

As you already know, there are a LOT of crooks and dishonest people operating in the ‘credit repair’ and “debt rescue’ industries these days, taking advantage of people who are desperate, and already in a bad situation. This has always been a sad, seamy part of our culture – those who seek to profit from the misery of others, with “come-ons” that seem too good to be true (and always are!).

There are many legitimate Credit Counseling agencies, but it’s so difficult to tell the good from the bad. That doesn’t make it impossible to find a legitimate firm – it just means that you really have to do your homework.

I’ve got a couple of ideas for you – one is to contact your local United Way agency. Many of these local agencies are actively engaged in credit counseling, generally through cooperation with a legitimate local non-profit.

Another idea is to visit the website for the National Foundation for Credit Counseling (which can be found here: http://www.nfcc.org/). The NFCC is a very highly respected organization that selects and accredits participating members nationwide (they’re mostly called the Consumer Credit Counseling Service, or CCCSs). The NFCC is the nation’s largest and longest serving national Nonprofit Credit Counseling network.

CCCs offer credit counseling, debt management plans, bankruptcy counseling, homeowner’s counseling and money and credit management education. I think all of these services will be of some benefit to you, particularly the debt management plan. Here’s a little excerpt from their site that explains how those work:

“If you have severe debt, you may be eligible to enroll in a Debt Management Plan (DMP). A DMP is a systematic way to pay down your outstanding debt through monthly deposits to your credit counseling agency, which will then distribute these funds to your creditors. By participating in this program, you may benefit from reduced or waived finance charges and fewer collection calls. And when you have completed your payments, they’ll help you reestablish credit.

It takes approximately 36-60 months to repay debts through a DMP. Your accounts with creditors will always be credited with 100 percent of the amount you pay through an NFCC member agency. A DMP serves the dual role of helping you repay your debts while creditors receive the money owed to them.”

Here’s the best part – all of these services are either free or offered at an extremely low cost, based on your ability to pay. Do yourself the favor of visiting the site and find your local CCC office – these are the legitimate agencies that you can trust.

Good luck to you, Gary. I wish you all the best.

How to eliminate $5000 credit card debt – debt reduction tips

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