Avoid Mistakes When Seeking Help With Debt. Find The Best, Most Reliable Companies to Get Out of Debt. Learn About Reduction and Consolidation Solutions. Read Report.

Free Debt Help Q&A

I am approximately 5 months behind in credit card payments. I am trying to pay them, but have found myself over my head and frustrated. My paycheck is too small to beable to pay them. I am looking for other options but have not found one. My credit score is low because of not being able to pay on time. I have creditors calling and don’t know what to do. I tried looking into a credit counselor, but they told me they cannot help me because I dont make enough to even begin to consolidate. They gave me one option, file for bankruptcy. I don’t want to file for it makes it harder to even fix your credit problems. It is like a dead end for a long duration of time. Do you have any suggestions?

Unfortunately, your situation typifies what millions of people are now facing in terms of Read the Entire Post >


I have been talking to two different debt relief companies with 2 largely 2 different payment plans. Just wondering if the one is too good to be true. one company has plan to pay the principal without the interest, while the other has plan to pay whatever deductied amount the credit co. will agree too( that is the cheaper payment option for me). I have been trying to check out the companies and have been unsuccessful. Any suggestions?

It may be that you are speaking with 2 different types of Read the Entire Post >


If a company takes the 15% fee up front within the first 12-18 months from your escrow account which basically leaves nothing in there by the time of settlement. Does that sound right to you?

15% is the standard fee in the industry and yes some companies do try and Read the Entire Post >


We are currently in talks with a debt reduction company. They are claiming that they can reduce our debt by 50%, but for the next two years our credit score will suffer and we will be hassled b creditors. Is this a viable option to get out of debt as quickly as possible?

If you want to get out of debt as quickly as possible, debt reduction through a debt settlement company is often Read the Entire Post >


I read a question from someone about the BBB rating of a debt company, what are some other ratings, there are other ratings called TASC and International Assoc. of Professional Debt Arbitrators? Are these good associations to judge a company by?

Basically there is no rating system that’s adequate to help you select a debt relief company. The BBB is good in my opinion not for its letter rating but instead for knowing the Read the Entire Post >


If you sign up with a “so-called law firm” that handles these debt negotiation programs, how do you know that your credit card co. is even for sure going to settle with them???

There are no guarantees with any negotiation process and that’s the case as well with Read the Entire Post >


I am $42,000 in credit card debt. I pay about $1100/month in credit card payments. Most of these are just minimum payments. My paycheck is mainly to pay off these cards where my husband pays everything else. We have recently put the house on the market to pay these off, but the market is so bad, we really can’t count on the money from the house. Not enough equity in the house either for a home equity loan. I have considered debt negotiation, but is that the route you would suggest?

Debt negotiation (settlement) is intended for those who: Read the Entire Post >


HI SCOTT: My wife and I both got divorced from our former spouses in the early 80’s, sold our houses and bought a new house together in 1997. All 6 kids have graduated from high school and 5 have graduated from college. Our divorces created…(cont.)

Question Continued…financial hardships on both of us that resulted in credit card debt. When we bought Read the Entire Post >


We did a short sell 3 years ago and then mortgage co. financed the remainder. We paid on for 3 years at $210/mo and paid on time. Rec’d letter last August from mort. co. stating “exciting opportunity”, send us a money order or wire within 14 days and we’ll waive 90% (cont…)

Question continued…: of your balance Read the Entire Post >


My husband is self-employed and I’m not working. So far we’ve been able to pay our bills, but he only has a week left with the company he has been sub-contracting for. I have $40,000 in a 401k which is our only savings left. We have $55,000 in combined credit card debt. My mortgage is a neg am fixed at 6.50 with 2 years left, but I can only afford to make min payment, so $20,000 has been added to the original principal balance of $500,000. We won’t qualify on a full doc loan to refinance. I have a free and clear rental in Nevada, but would take too much money to fix up and sell and would rather wait until market is better. How do I reduce credit card debt and modify my mtg if we aren’t late and can’t qualify?

I am not sure why you do not think you can qualify for Read the Entire Post >


I have 18k in debt…

(a total of 3 credit cards, one a business credit card and the other 2 personal credit cards). I’m self-employed. I live in Texas and was hit hard by Hurricane Ike. As a result (cont…) Read the Entire Post >


Please explain how the $$$ saved can be taxable when it is not income? If I owe $50,000 and settle for $25,000, how can they tax the 25,000 saved when I have not claimed the 50,000 as an expense? What am I missing?

This is a great question and yes your logic is 100% correct however, the Read the Entire Post >


Why Can’t Debt Settlement Companies Tell You Exactly How Long Their Program Will Last?

Debt settlement is a negotiation process and until an Read the Entire Post >


While making my monthly payments to the debt settlement, will my balances still be open on my credit cards that are part of the settlement, and thus have interests and fees accruing on them still?

Yes, you will still be accumulating interest and late fees on your cards during Read the Entire Post >


My question is: what is the difference between companies that say they can provide no legal help if you are sued by the creditors, those that say they can tell you what you need to do if this happens, and those that guarantee (because they are a “legal firm”)you will be protected from legal action by their legal expertise in these matters? I really appreciate a response. Also, which organizations, i.e. TASC, etc. are really a valid gage for knowing if a company is legit? THANK YOU!!

Lawsuits are relatively rare but they certainly can and do happen. A reputable Read the Entire Post >


Hey:Scott. Nationwide assets.also known as Global solutions.

I am sorry Read the Entire Post >


I have 20k in cc debt. I have never missed a payment and have a relatively good credit score. However, my student loans which I can no longer defer need to be paid starting in three months. I can’t afford to pay both so I’m trying to find a solution before then to relieve my debt. I signed up for a debt settlement program for my credit cards a week ago but now I’m having second thoughts after reading your Q&A’s about the severe effect on my credit score. I was looking for the fastest way to get out of the cc debt so I can only worry about my student loans. Not sure what I should do. Suggestions?

Unfortunately, I do not have a good answer for you. If you have both types of Read the Entire Post >


I owed about $2000 on a credit card I had back in college now they are coming back and they want for me to pay them $6000 or that they are pressing a lawsuit against me. I don’t have much money because I have a premature baby that is sick and needs medical attention, but I do want to settle this account that has been bothering me because it just adds to my stress is there something I can do. My overall debt that is in collection is about 10,000 not including my student loans which are in forebearance and my car which I pay on a monthly basis. I want to look at consolidating companies, but from reading several reports it seems that you need to have a lot of debt in order for it to be worth it. What should I do? Is there a way to stop a lawsuit from happening? Where should I start? sorry for the long questions :-) but I am desperate for answers.

It sounds like you have several types of debts which can pose a problem. The student Read the Entire Post >


I have a good credit but my income has decreased. My credit cards rate are excellent 3.99 % and 6.99% but the balance are high (50K). Can I protect my credit score and drastically reduce my debt payments, or since the rates are very good banks can’t go lower? Will a debt management program or credit counseling agency help me to reduce my payment . It is a way to get the rates I’m paying lowered?

It sounds like your interest rates are already exceptionally low so a Read the Entire Post >


When entering a debt settlement program, and start paying the debt settlement company and stop paying creditors, will they start harrasing you, or do you consult first with the creditors so they know what is going on?

As you mention, the process of debt settlement entails a suspension of payments Read the Entire Post >


« Previous Entries