Debt Consolidation

[BK_Adores_Chase]

My bank denied my butt.  Where else can I go that is guarenteed to help me out.  My bills are so overwhelming sometimes I don't even have money for groceries for a week, and the government denied me for food stamps (I can't see how, but whatever).

[willow80834]

I used freedomdebt.    they took my cc and settled em was still long hard road but i am better off now and can afford to buy food again

[dreamyxo]

You need to find a way to spend less or make more money or both.  Carry around a small notebook write down everything you spend.  Write down every penny that comes in and every penny that goes out.  Do this for a month.  You can see where you are wasting money.  Do you overspend? Eat out too much? Shop too much?  Can you find ways to cut your bills, cable, insurance, grocery?  Can you get a part time job, work overtime?  You have to find a way to live below or within your means. 

[sandiegosurfer]

someone told me that you can make deals directly with the creditor and pay less at the end and they are willing bc they would rather know they are getting any amount of payment then no payment at all.

[LegendKP]

Debtwave Credit Counseling Services . . . They will take your unsecured cards, communicate with the financial companies, and set up a payment plan with lower interest.  I use them and I'll be debt free in 4 years (2 down, 2 to go).

[rcadams1980]

I called a debt settlement group to see if I could settle my medical bills.  They told me that I could settle for 35 cents on the dollar, but I would still have to pay $500 per month until the settlement amount was satisfied.  This included all fees.  It seems like if I could afford $500 per month, I could make payment arrangements on my own.  It doesn't seem that debt settlement is the way to go.  I guess the debts will remain unpaid

[LegendKP]

This isn't debt settlement.  This is a negotiation of your accounts to make payments that you can afford and make all account current to help your credit rating.  You are still paying the full amount of your debt.  You have to be careful with debt settlements.  If the amount your write off is over $600, it counts as INCOME and you have to claim it on your taxes.  Happened to me once when I settled one card for $605 less than the amount.

[mc1962]

Any time you deal with banks about our situations, we need to be real careful that what they are offering is what we really need.

[hwilliams591]

You can do the debt consolidation yourself, no need to pay a company that will mostlikely rip you off.

[klkwid]

I saw this happen to someone I know-Continue to pay the things you HAVE to, like your mortgage or rent and your car, but either negotiate with your credit cards or, if you have to stop paying something, make it one of your credit cards-BE PREPARED TO HAVE NO CREDIT AVAILABLE, THOUGH.  This way you will continue to have a place to stay and a vehicle to get to and from work.  My friend stopped paying credit cards and they eventually negotiated down to about 30% of what he actually owed.  They were just happy to get paid anything because they are getting the shaft most of the time.  If you can save up a chunk to pay them off with while you aren't paying on time, they will take your offer in a couple months. 

I KNOW this is horrible, but sometimes you have to make choices of either eating and living in a shelter or else paying until you can't take it anymore.  Best thing to do now is call your credit card or other places you owe and see if you can negotiate yourself-tell them your situation and see what you can do yourself.  You might still be able to salvage your credit score a bit before taking the other approach.

[jaba187]

Their are non-profit programs that will help you in regards to debt relief and counseling, usually the country that you live in will have a program that is funded by the state and federal government that will help you for free depending on your income.

[jordandog]

A huge roadblock in any of this right now is that more than half the country is in the same situation. Banks are leery of anyone without a credit score above 780-800 right now - they just plain will NOT lend any $$ or give a line of credit. I think your best bet is to call your state agencies, they all have free numbers, and ask them what to do, where to start. Since the huge debacle with lending and foreclosures, state agencies have become the necessary resources they should have been all along.

There are a HUGE number of fly-by-night/rip-off debt consolidators out there too. The situation has been a huge boon for them and they are all in a feeding frenzy to get people to go with them - check them out thoroughly before you agree to anything! I have actually seen ads saying "Sign up with us, we'll give you a free I-Phone, etc." People cannot pay for food, but they'll give you another monthly bill to start new mobile service?!