ASAP Debt Help » Debt Advice

I need some professional advice about my credit situation. Is there free credit counseling near Sherman Oaks?

gitterdun — Sun, 29 Nov 2009 16:01:43 +0000

SnowWhite24 asked:

I’m looking for a credit counselor who can sit down with me and look at my financial situation and help me come up with a plan to manage my debt. I need help getting out of debt but can’t seem to find any legitimate places to go to get help near Sherman Oaks, CA.
I am past due (90 days) on all of my bills except rent, cell, and car. I’ve estimated my debt is about 7k.

Can I consolidate some credit card debt without harming my credit?

gitterdun — Sat, 28 Nov 2009 03:50:00 +0000

mommanutmeg asked:

I have 3 maxed credit cards and am having a hard time getting them paid down. Due to some hard times, I have been late on a few payments and my overages have been crazy! If I could bundle them, I feel like I may have a better chance of getting them knocked out quicker. I am worried this may hurt my credit. Any advice?

CatDad on December 4th, 2009 8:34 pm (Edit)

If youve been late on a few payments then that would disqualify you for a traditional consolidation loan.

Stay away from any debt consolidation company that promises to cut your debt and payments in half through debt settlement.This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator.this entire fee goes towards building a settlement account and to the consolidators fees to settle your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your financesYou can never predict how your creditors will respond to the deliberate defaulting of your accountsthey might settle at 50%or they might serve you a summons, take you to courtand if they win, you could be looking at wage garnishment.

Many people who sign up with debt consolidation firms incorrectly assume that they have the power to force your creditors to accept settlementsthey dont. Your creditors have the right to refuse settlements and take you to court.
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One option is entering a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to enrolled in debt management. This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program.so dont use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while youre enrolled in the CCCS debt management program.

While an accredited credit counseling program like CCCS can be good you need to be aware that these programs are funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. I advise against using CCCS if you are drastically past due or have already complete defaulted on most of your credit cards.If this is the case then you are better off negotiating settlements directly with your creditors. You may be able to settle in the 25% 50% range if your cards are already defaulted. If you settle, get all terms in writing. They will probably want a large lump sum rather than small payments over several years. CCCS will not negotiate settlements because they are funded by the credit card industry.

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy.

How can i settle my tax debt with the IRS?

gitterdun — Fri, 27 Nov 2009 23:19:50 +0000

David asked:

I owe the IRS 5K+ in tax. I can’t pay the amount in full and If I make payments it will take me forever to pay it off because of interests every month. What can I do to settle with the IRS? any optios, advice?
Side Note:
What happens if you don’t pay the IRS?
Good answers.
This just happened this year.
How long it takes the IRS to lien the bank accout or garnish wages?

so i need so advice on how to get out of debt. but im not sure if i want to go to a debt consoldation agency?

gitterdun — Fri, 27 Nov 2009 22:38:08 +0000

lil mama asked:

so i have a couple bills i pay like rent and my car payment. and i can afford to pay those bills monthly and still have a little bit of cash for other things. the things i need help with is a while ago i got very irresponsible with money. i have a credit card thats almost a 1000 dollars. and a couple pay day loans. and interest on all of them are high. ive tried to get a loan so i could pay all these bills off and have 1 payment but my credit isn’t good so i can’t get a big enought loan. any help???

what is the best way to pay off my credit card debt?

gitterdun — Thu, 26 Nov 2009 03:08:44 +0000

googirl77 asked:

I owe approximatley $3000 and have just barley that in the bank. Is it better to **** it up and drain my account, b) continue to pay $400 a month and not use my card, or c) invest in a loan from my credit union?
any advice from people with knowledge of finance or someone who has been in the situation would be very appreciated.

Should we invest or pay off our debt?

gitterdun — Wed, 25 Nov 2009 03:39:28 +0000

jlgj asked:

My husband and I are coming into around 100 thou dollars in a few months. Right now we have quite a bit of debt including almost 30 thou in credit card debt at between 20 and 25% interest as well as owing our respective parents around 25 thou total AND a 30 thou 2nd on our home. I think we should pay off our Credit Cards, set up 20 in some sort of education investment for our 2 children and invest the rest of the 50 thou and make payments to the 2nd and our parents. My husband thinks we should just invest it all and not pay off any of the debt. Please give some advice.

What is a good way to get out of debt and stay out of debt?

gitterdun — Tue, 24 Nov 2009 04:11:13 +0000

thetravelingmartins asked:

My husband and I have a $1000 credit card and a $2000 loan. We also have two vehicle payments and a house payment so we are limited on money. Should I concentrate on paying off the loan first or the credit card? They both have the same interest rate and both have the same monthly minimum due which is $40. Can anyone give me some advice about what to do and how to do it?

I and above my head in debt, I will do ANYTHING to get out. Can somebody give some help or advice?

gitterdun — Tue, 24 Nov 2009 01:23:15 +0000

akld147@ameritech.net asked:

As the question says, I will do anything at all in this world to get out of debt, wheter it is good or bad. I am a male, age 19, I had a business that took a turn for the worse, my credit is still excellent but no lenders or investors will help me even with a co-signer on the application. I make enough now to pay the high-interest montly payments and that is all, nothing is ever left over, I have even asked my lenders to lower the apr, that is not going to happen tho. I am streched too thin in debt as far as getting another loan. I owe a total of 132000 dollars, none of it includes any property either for collateral. Can anyone help with this matter or does anyone have any ideas? I do not want to file for bankruptcy since that last so many years.] and I plan on starting a business again one day. I will travel, move, or do ANYTHING to crawl out of this hole.

What’s one piece of advice from your parents that you ignored, but regret ignoring?

gitterdun — Sun, 22 Nov 2009 07:02:48 +0000

Lilith asked:

I wish I’d listened more to their lectures about proper spending and saving habits. I’m perpetually broke and will be in debt for another 2-3 years.

Can you consolidate your own debt, w/out hiring a company, and can you consilidate car debt?

gitterdun — Sat, 21 Nov 2009 17:47:08 +0000

clover7907 asked:

I have heard debt consilidation is as bad as Bankruptcy. We actually already have a chapter 7 bankruptcy(3yrs old now).We have had no deliquncies since then. But times are really tough, and were short on $. Were about to have 1 of our cars,and our motorcycle voluntarily repoed. Plus there a few credit cards, that we cant pay just now. My hubby told me to call the companies and try and bargain w/them, like debt consildators do. I figure its worth a try, but maybe I should just hire someone? I know its not good on your credit, but figure its better then a repo, b/c at least you can undo consolidation later when $ is better, but you cant every take back a repo. And i’m also wondering if they consolidate cars? Any advice would be very much appreciated. Thanks in advance