It would have been more convenent to work with the creditors yourself and work out a deal with them. Some debt management programs can hurt you because it takes the power out your hands to make legitament negotiation with your creditors to reduce your monthly payments. The objective is to maintain good standings .
You really should be working with your creditors yourself. If you deal with it yourself you know whats going on. If you leave it up to someone else then you only know what you are told by the company you hired.
What they will do is not pay your creditors for months and then try and settle for less. You really need to do it yourself. Save the fees they charge and use it on the debt.
Remember, if they dont pay your creditors. You, and you alone are still responsible for the debt. Your creditors will come after you and not the company you hired to handle it.
They will settle for less than the amount owed but they want it asap so you need to start saving now.
I work for a pretty large global bank. I would stick with the CCCS program if I were you. I have worked in several areas such as auto loans, corporate/business credit cards, private label cards, co-branded cards, unsecured lines of credit, etc. There are hardship programs out there for banks to offer you, but I don’t know if it would cut your payment in half, if it did…It wouldn’t be a very long term plan. Many hardship programs are not for the life of loan/balance. The revenue comes from finance charges and late fees, which many banks do not want to part with, but all banks are different. Keep in mind, these CCCS companies have working relationships with these banks and usually get you a decent deal. Just make sure you are not signed up with a debt settlement company….Chances are, you’ll get sued.
Dave Ramsey says when you use companies like these you get “better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don’t do it.”
I would call your credit card companies and explain your problem and your suggestion for dealing with the problem. They will probably be happy to see that you are planning on paying anything. Remember though that if you pay half your credit card payment that you will probably be paying the interest only and you will not be getting to the root of the problem, the debt (the principle) itself. Look at the website I mentioned below. He has a lot of great ideas!
Leo
It would have been more convenent to work with the creditors yourself and work out a deal with them. Some debt management programs can hurt you because it takes the power out your hands to make legitament negotiation with your creditors to reduce your monthly payments. The objective is to maintain good standings .
Enrique
You really should be working with your creditors yourself. If you deal with it yourself you know whats going on. If you leave it up to someone else then you only know what you are told by the company you hired.
What they will do is not pay your creditors for months and then try and settle for less. You really need to do it yourself. Save the fees they charge and use it on the debt.
Remember, if they dont pay your creditors. You, and you alone are still responsible for the debt. Your creditors will come after you and not the company you hired to handle it.
They will settle for less than the amount owed but they want it asap so you need to start saving now.
Damian
I work for a pretty large global bank. I would stick with the CCCS program if I were you. I have worked in several areas such as auto loans, corporate/business credit cards, private label cards, co-branded cards, unsecured lines of credit, etc. There are hardship programs out there for banks to offer you, but I don’t know if it would cut your payment in half, if it did…It wouldn’t be a very long term plan. Many hardship programs are not for the life of loan/balance. The revenue comes from finance charges and late fees, which many banks do not want to part with, but all banks are different. Keep in mind, these CCCS companies have working relationships with these banks and usually get you a decent deal. Just make sure you are not signed up with a debt settlement company….Chances are, you’ll get sued.
Karl
Dave Ramsey says when you use companies like these you get “better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don’t do it.”
I would call your credit card companies and explain your problem and your suggestion for dealing with the problem. They will probably be happy to see that you are planning on paying anything. Remember though that if you pay half your credit card payment that you will probably be paying the interest only and you will not be getting to the root of the problem, the debt (the principle) itself. Look at the website I mentioned below. He has a lot of great ideas!