spooked
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Wed Jan-11-06 11:35 AM
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Anyone know of a good Credit Card Debt Consolidation plan? |
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Where they get a better interest rate, and you make one payment to them?
I have heard there are some scams out there, but I wanted to know if anyone has used these programs successfully...
Thanks in advance!
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phantom power
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Wed Jan-11-06 11:46 AM
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1. One way is to "roll your own" |
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by using a home-equity loan or 2nd mortgage to pay off your credit cards.
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flamin lib
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Wed Jan-11-06 11:55 AM
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2. Chapter 13 worked for me. nt |
LiberalPartisan
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Fri Jan-20-06 07:10 AM
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10. And Ch-7 worked for me - before the new law n/t |
kay1864
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Wed Jan-11-06 12:00 PM
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3. This from Clark Howard... |
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Watch out for phony credit counseling services Have you heard about the phony credit counseling services out there? They often advertise on late night television, and the amazing part is they are fairly successful. These companies have stolen an ungodly amount of money from consumers and we’re just now starting to put a dent in the problem. According to the Federal Trade Commission, three of these awful debt consolidation companies have cheated people out of more than $100 million. That’s just three of them. You have to be careful about who you trust with your money. If you are one of the 9 or 10 million Americans that gets overwhelmed by debt, there is one accreditation body that lists counseling services. It is called the National Foundation for Credit Counseling - www.nfcc.org and it is the only body that can give you legitimate organizations. Don’t get taken by one of the scams! Do your homework.
Credit cards • Debt is a disease and credit cards are one of the easiest ways to get sick. Nobody ever got wealthy borrowing money for gifts, clothes, restaurants, entertainment, or travel. • If you've been using credit this way, start thinking about your credit card purchases as if you were buying with cash. If you can't pay it in 25 days, don't buy it. • Credit cards are okay if you use them for safety or convenience. • Don't use debit cards, particularly for online purchases. They may help you avoid using credit, but thieves or errors can drain money directly from your checking account. • If you don't carry a balance, get a card with no annual fee and a 25-day grace period between the day of the purchase and the day the interest meter starts running. • If you frequently carry a balance, get a card with a low interest rate. The annual fee matters very little. • Don't carry more than two or three credit cards. They're unnecessary and can cost you up to $50 per card if they're lost or stolen.
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TreeMonkey
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Wed Jan-11-06 01:06 PM
Response to Reply #3 |
4. Dont let them sweet talk you...! |
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Stay away from ALL of those call in services! They will charge YOU and take money off the top. You will have bad credit for 10 years anyway. I know, I know a couple people who used them. Same as bankruptcy. The "Credit Counselors" are all "EXPERT" sweet talking scumbags. Be careful, they will tell you what you want to hear!
Try a local credit union for an "emergency" credit card if you REALLY need one, as they are lower rates.
Also, I learned from working inside one of these companies that the big credit card companies do alot of little things to rip people off, and charge that extra $35.00 fee for being late, like late postdates- at least thats what some people complained about.
Do you know what 25% interest MEANS? - Again, I would talk to people who had no idea what an interest rate was...
If you cant afford it, dont BUY it!
Look at used cars that are reliable, why pay 10-20,000 + for a car? That is insane!
Credit Card companies are run by Harvard and Brown graduates who had 100,000 worth of education on how to rip off the "less fortunate". They are getting away with usury, as most states relaxed their usury laws 20 years ago.
20 years ago, what they charged was criminal. DONT PLAY THEIR GAME!!
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spooked
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Thu Jan-12-06 06:32 AM
Response to Reply #4 |
7. Thanks for the good replies everyone! |
Flirtus
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Wed Jan-11-06 01:22 PM
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5. these are all good replies |
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I'd like to add that if you don't belong to a Credit Union, find one and join, and use their credit counseling services, or there are non-profit credit counselors usually attached to your local United Way. If you aren't a homeowner, or if you have maxed out your home equity, then Chapter 13 might be best.
NOW is the time to get rid of these beastly debts, I've got them, too.
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Geoff R. Casavant
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Wed Jan-11-06 01:41 PM
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6. I used Consumer Credit Counseling Service |
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They were one of the first, and they were able to arrange lower interest rates and a consolidated lower payment -- we got consumer-debt free in 5 years.
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fasttense
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Fri Jan-20-06 07:34 AM
Response to Reply #6 |
11. You sound like a commercial. n/t |
sendero
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Thu Jan-12-06 10:10 AM
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8. Depending on your situation.. |
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.... bankruptcy should not be ruled out. It's not as good as it used to be, but still useful.
My brother has been working through a credit counseling agency for a while now, paying off something like $20K of cc debt. It's been a mixed bag. It's basically working, but he's gotten almost nothing in terms of help, a small amount in interest rate and zero on the balance. Every now and then, the agency doens't issue the payments to the cc company on time (they are essentially a go-between), and then phone calls have to be made to straighten it all out.
All told, I think he'd have been better off just declaring bankruptcy. particularly before the new law.
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Sammy Pepys
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Thu Jan-12-06 02:58 PM
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Picking the wrong service is too risky, and the fact that you sought credit counseling or consolidated could end up on your credit report, where potential lenders can see it. That's not good.
Best way to address is to assess your financial situation, and direct as much money as you possibly can towards paying your bills.
If you can transfer balances from high-interest cards to lower ones, that's a good direction to go in too. But beware of third party credit fixes.
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Thu Apr 25th 2024, 07:38 PM
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