What is a good debt consolidation company, I just finished college and almost lost our house. I am less than 10,000 in debt but they are harassing us and threatening to garnish our wages. My debts have changed hands so much I,m not even sure who we owe at this point.
Please I need advice,not angry people who want to hand down a repremands or tell me how bad my spelling is.
Please I need advice,not angry people who want to hand down a repremands or tell me how bad my spelling is.
Check out your rights regarding debt collectors on the FTC website. This should help you get them off your back temporarily.
You should as you get the money attack your debts from the smallest to the biggest. I would offer a lump sum partial payment and make sure I got in writing that they are accepted a partial payment for the debt.
Also make sure you maintain some cash reserves to avoid more debt in the future.
Stop, take a breath, you can make it through this!
Now the person you own is the person you originally borrowed from! No one else unless the original lender sold it to someone else, and they had to notify you of the transaction.
Thank the debt collectors when they call and ask them to Prove the debt and tell them, per the “Fair Debt Collection Act” that they can not call you back until the debt has been show to be correct.
I for one, will only deal with the person I borrowed from regardless of who calls my house. Since all of my current debt collectors are from medical bills, (which some over anxious medical staff member sends off for collection before my insurance pays for it) I just start sending the medical office (lender) $10.00 per month. When the debt collector calls I say I am making payments, when they say that I haven’t made any arrangements with them I inform them that I didn’t hire them and for them to talk to whoever hired them(the medical office). They get pissed and hang up.
All the the debt collector is, is what we called in elementary school a Big Bully, and they get money from people be intimidation!
Just Don’t let them intimidate you.
If you owe the debt pay it, just do it one payment at a time until it is gone!
Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan.
I am in the same boat…15k in debts. I didn’t bother trying to get a consolidation loan because I already knew I wouldn’t get approved. What I did do though is go to Debt 1 Option at since I didn’t want to file bankruptcy. I get a lots of advices and tips.
Good luck !