Rozz asked:


My sigining appointment is on Monday.
Problem!!!!…..My car is in danger of repossession(2 months behind on car note..$2500 left on payment plan!) I have included this car in my bankrupty.
How long will it take for my car creditor to be notified?
Please help me out…I’m going crazy and need your suggestions!

Jon

Daniel Cho asked:


Driven by the notion of instant gratification, American consumers’ pursuit of the “good life” has placed them in over $2 trillion in debt- $800 billion of it being credit card debt. The average American household is in some $8,000.00 in debt and about 43% of American families spend more than they take in. The majority of consumer borrowing, about 63%, is represented by “non-revolving” debt such as automobile loans, or mortgages. Revolving credit, which consists mostly of credit card debt, is an increasing part of the consumer debt problem. Revolving debt currently totals around $735.30 billion-more than double the amount a decade ago. This near financial epidemic has given rise to predatory lenders and advertising bombardment from an industry that handles bankruptcy, credit consolidation, credit counseling, and debt settlement. When addressing consumer debt there are five main options for help- credit counseling, bankruptcy, consolidation loans, do-it-yourself methods, and debt settlement. Welcome to the industry of consumer debt relief.

Credit counseling, founded 50 years ago and partially funded through ‘Fair Share’ by the credit card companies themselves, offers consumers a program with a non-profit credit counseling agency designed to lower interest rates and create a repayment schedule. Credit counseling can easily be named as the better known method of absolving consumer debt. However, credit counseling is not without its drawbacks. Consumers enrolled in the program will often face problems with mortgage lenders as credit counseling is thought of as analogous to a Chapter 13 bankruptcy. Credit counseling also forces the consumer to pay back 100% of debt including interest and fees. This takes the average American over 5 years, sometimes even more, to complete. The fact that a consumer will be also be disqualified if delinquent on their accounts, does not help the industry’s already low graduation rate. Credit Counseling can work well in certain situations but for the majority the negatives outweigh the positive aspects of the program.

Other than the do-it-yourself method, the second, almost universally known, method of reducing debt is bankruptcy. Consumers who believe they have no other alternatives are usually the ones who should turn to bankruptcy. There are two types of bankruptcy, Chapter 7 and Chapter 13; both can protect some of the client’s assets as well as absolve totally, or at least the majority, of the client’s debt. The more immediate and probably harshest of the drawbacks to bankruptcy is the traumatic damage to the consumer’s credit and depending on the situation can stay on the credit report for 7-10 years. On the contrary, in public records the notice of bankruptcy can show for up to 20 years.

Consolidation loans allow a consumer to pay off their debt in full by obtaining one big loan to cover the consumer’s entire range of debt. With a consolidation loan, monthly payments are no longer a hassle to juggle. Interest rates are relatively lower than what credit cards offer and credit ratings are not affected assuming payments are not missed. However, the discipline required to prevent a consumer from falling into the same amount of debt, if not more, is almost parallel to the amount required to solely pull oneself out of debt through a do-it-yourself program. A secured consolidation loan can cause even more harm by putting the collateral at risk in the case of default. Consolidation loans are handy but for the consumer can be a very tight rope to walk-especially if paying back the consolidation company can take more than a couple years.

A Debt Settlement or Debt Reduction program strives to actually reduce the amount of debt the client owes. A good settlement company should be able to reduce the debt by 50-60% of the principal balance based off the client’s personal financial hardship. After entrance into the program, each client is set up with an account almost exactly the same in function and use as a regular savings account. These funds are later used as support when negotiating with creditors. However, due to the fact that debt settlement requires clients to deposit into a trust account rather than repay outstanding accounts to other creditors, clients will notice a dip in their credit rating. This is considered only a transitory period, as the funds in the account will be used to pay off the creditor with an attractive lump sum payment. As each account is closed and settled, the client’s credit rating should gradually come back on the upswing and be in a prime credit repair position after all debt is paid off. Overall, debt settlement offers a way to reduce a client’s debt by almost half within 2 to 3 years as well as an opportunity to eventually repair their credit. It is important to note that although Debt Settlement has a temporary negative effect to the credit score, your credit report will not show that a third party is helping you pay off the debt.



Sylvia

Bryan Burbank asked:


Most people do not know it is possible to get a Government Grant to help them pay off there debt. It is very possible that you can qualify for this type of Grant and it is good if you are in a situation were you are having a hard time paying your credit card bills.

More Information on getting : Debt Relief Today

It is getting harder and harder to make ends meet because it seems like everyday the price of gas keeps rising. The issue is that most people can not keep up with the rising cost and they end us charging more than they should. If you get into a situation like this and you are having a hard time paying your monthly payments then it may be very beneficial for you to get a Government Grant.

Learn How to Get a : Government Grant Now

The Government likes to give away money in the form of Grants and they want to make sure it gets to the most needy. The Government likes to stimulate the economy by having money available to people who get into trouble and need help.

It is important to know that when looking for information on Government Grants that you find a legitimate source so that whatever time you spend it will be well worth it. Also the Government looks at people in situations that the persons only way to get Debt Relief is to get a grant. This is important to remember when filling out the forms that if they think you can just go out and get a loan they might not give you the Grant.

Remember that if you are drowning in Debt you should consider getting a Government Grant to get some Debt Relief.



Carrie

Mysti1000 asked:


I keep seeing these ads where you can consolidate all of your debt into one monthly payment and have your interest rate reduced. But is this the same as a settlement? Does it affect your credit as badly as declaring bankruptcy would?

Thelma

amanda c asked:


I have a lot of student loan debt, and a little credit card debt, mixed with some personal/medical-I’ve heard that legal help is best, but I’m only familiar with debt consolidation, which I now understand isn’t always best and is actually in for profit more than helping. As a family in crisis, does anyone have any good advise?

Rita

Bryan Burbank asked:


If you have to much debt then there are options that are available to you so that you can pay off your debt and get your life back on track. It seems easier than ever to get new credit cards because they seem to constantly send new credit card offers. It is important to control your debt because if you let it get out of hand you can have major problems. If you get into a bad financial situation you need to look into debt relief consolidation.

More Information on getting : Debt Relief Today

If you have credit cards that you are over your head on to pay them late or not pay them at all will cause some problems. You will suffer by having negative marks on your credit score so it is always a good idea to pay your bills on time. If you stop paying them altogether you will get harassing phone calls from the lenders you have cards with. Not only will they call you but they will also ruin your credit rating and this usually takes 5-7 years to correct.

Learn How to Get a : Government Grant Now

If you have too much debt you need to get a debt relief consolidation loan that can help you combine all of your debt into one debt. The advantages are that you will be able to get a lower interest rate on this type of loan. Also it will be much easier to handle because you will only have to pay one payment every month.

Remember that you want to get a debt relief consolidation loan and you can get a professional to help you achieve this.



Catherine

Sandra Simmons asked:


Okay, so you are in debt and your creditors are screaming. How do you handle it and get debt relief without having a nervous breakdown? Use a simple tool called Dateline Paying.

Dateline paying is a simple method of paying oldest bills first, based on the due date. The dateline tells you how far back in time your past due bills go. And yes, credit card debt should be treated just like any other past due bill. There are a few simple steps to this strategy that anyone can do.

1 – Make a list of all your past due bills and credit card debt. Use a report from your accounting program or a spreadsheet of some kind so you can sort them by due date. Be sure and put in a bill for more than the minimum payment for each credit card or line of credit.

Make the credit card bill for the amount you want to try to pay over the few weeks before the payment is actually due. For example, if your minimum payment is running at $400, put a bill in for $600.

2 – At the end of each business week, carve off 15% of the income to use to pay past due bills and debt. Use the remaining 85% to pay current operating expenses to keep the doors open, the lights on and the telephone ringing to get in more income.

Be sure and use some of the 85% for promoting your products and services to keep customers buying, and set a bit aside as a cushion to handle emergencies.

3 – Use the 15% to pay the debt by dateline – oldest bills first. Always use a portion of it to pay suppliers and part to pay credit card debt.

4 - Pay a bit against credit card debt each week using on-line paying.

Why? Because you stop the daily interest compounding on the amount that you paid. This can save you a lot of money in unnecessary interest charges over time. It also keeps you from being late on your payments and avoiding the late payment charges. In addition, it eliminates the scrambling to come up with a big chunk of cash to pay the credit debt on the week the statement says the payment is due.

5 – Pay past due bills from suppliers – oldest bill first. The only exception is a supplier who refuses to ship more product that you need in order to produce more income, or one who is threatening legal action. Those are dangerous situations that must be handled immediately.

6 – Work out how to raise your income so that you have an increasing amount of money to use to work this debt relief strategy.

Systematically working at paying both ends of the dateline, 15% to past due bills and 85% to current operating expenses, gradually moves the dateline forward to present time until you are current on your bills and out of debt.

You can easily see this dateline paying strategy working for you if you make a graph of the total debt you owe and plot the figure each week so you can see the amount of debt coming down. Not only does it help you confront the debt you created, it validates the actions you are taking to get that situation handled.



Melvin

Mansi Gupta asked:


As leading life is becoming more and more costly, every now and then people are in need of money. According to the amount of cash and the time in within which they want it, they try to acquire money in the form of loans from banks, companies and other organizations. But most of the time, it becomes hard for them to repay the money so acquired. As a result people fall in to the trap of debts. For after a specific point of time, they are required not just the amount due, but also the interest charged on it.

Since huge debts can prove extremely fatal to an individual in many ways, it is very important that the person should think of debt management. Debt management is the only way to debt relief.

There are quite a few online guidance services that tell you about debt relief and debt free living. They suggest a step-by-step procedure for you. In the long run debt relief should be a part of your financial goals and objectives.

Debt relief planning is all about eliminating your debts as soon as possible and saving for your future and building a reserve fund. A practical budget should be made that talks about your realistic spending plans. This will let you meet all your goals, enjoy your present and also secure your future.

The process is simple. If debt elimination is the foremost thing that you want, pen down all your liabilities and then decide how much money you can spare. Check out your expenses like where and how much you are spending etc. Plan your expenditure in a way that your present as well as future is secured and life is balanced at both the ends.

If you find that your spending capacity is more than your earning capacity, the foremost step should be to dump your credit card. Though the plastic money has its own advantages, there are drastic demerits too. With a credit card in hand, you are too much liable to run into huge debts. Not using the credit card will encourage you to spend only what you have and nothing over and above that. For then $50 in hand will imply an expenditure of $50 only, not even a single dollar over it.

You should also try to develop the habit of saving money. Don’t forget the old saying ‘a penny saved is a penny earned’. On the same hand, cast aside a specific amount of money that you need to pay for paying off your debts. Once the money is through and you still have money left in hand, you can begin paying off your creditors, one at a time. This will not just make you confident but will also add to your credit, thereby helping you greatly in future.



Lewis

mom of 2 asked:


Would like to hear anything good or bad!! Thx

Stephanie

khellsee yo asked:


ok so im only 20 years old. my bf and i spent 7,312.00 BUT we are no longer together…so he stopped helping pay on a credit card that i had in my name? but now the credit card is like 12,000.00!! a collection burrow has contacted me and we will go to court they said the WILL take 26% of my paycheck? they told me i’ve disappointed alot of people???? they don’t know me though? haha so should i go with the debt or bankrupsy lawyer or just a reg. lawyer and how much will that cost me?

Grace