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#1
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Advice: Get out of your debt sooner?
Like Earl always says, this is a family. So it'll be great if anyone has this kind of knowledge shares abit with me on the svx web family.
This is not the first time I received this type of letter. Well, I received a letter from a debt relief agency today. Basically, the letter says it will help you get out of your debt sooner and cut down your high interest rates alot. I gave a call to the 1-800 number. Basically, the agency will help you cut down your high interest rates alot and help your save money in your debt. It kind of sounds too good in everything......of course, they'll make your money in btwn from the % interest rate. The program is like ask you to stop doing payments on your credit cards and settle down to one payment to them from your account. Apparently, it sounds good and for example if you have ten thousands loan and it will help you cut down paying more than 60%. My thoughts is what kind of drawback on this program? Well, how did they know I now have high balance loans on the cards? Is this a good program and not a scam that will harm you? One thing I don't like is they will ask you to stop payments to your cards and you're forced to close your other accounts. Please share some advices if you have this type of knowledge. Thanks.
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-SSSVX 92 LS-L TEAL since Aug '01 92 LS-L YELLOW since Mar '05 |
#2
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I have heard that they charge a fee to do what you can yourself. The way that most of the debt people advise is to get whatever money you owe onto a 0% interest if possible. If you can't do that, pay minimum on the lower interest cards and the most you can on the highest interest cards. Then as soon as you get it paid off, you put all that savings into the payment of the next higher interest card until all are paid off.
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. Earl .... ... .... ><SVX(*> Subaru Ambassador [COLOR=”silver”]1992 Tri Color L[/COLOR] ~45K (06/91) #2430 1992 Dark Teal LS-L ~184K (05/91) #0739 1992 Claret LS-L ~196K (05/91) #0831 1992 Pearl LS-L ~103K (06/91) #1680 1992 Pearl LS-L ~151K (06/91) #2229 1992 Dark Teal LS ~150K (07/91) #3098 (parts car) 1992 White LS-L ~139K (08/92) #6913 1993 25th AE ~98K (02/93) #164 1993 25th AE ~58K (02/93) #176 1993 25th AE ~107K (02/93) #215 1993 25th AE ~162K (02/93) #223 1994 Laguna Blue Pearl LSi ~124K (1/94) #2408 1994 Laguna Blue Pearl LSi ~144K (10/93) #1484 1994 Laguna Blue Pearl LSi ~68K (10/93) #1525 1994 Barcelona Red LSi ~46K (02/94) #2624 1994 Pearl LSi ~41K (12/93) #1961 1995 Bordeaux Pearl LSi ~70K (02/95) #855 1996 Polo Green LSi ~95K (03/96) #872 1997 Bordeaux Pearl LSi ~55K (08/96) #097 2003 Brilliant Red LS1 Convertible ~29K (04/03) #8951 1999 Magnetic Red LS1 Coupe ~33K (04/99) #6420 My Email | Old Locker | New Locker | Picture of 15 of the 19 |
#3
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I tried one of these things back in 03. Turned out the company was fake and it was a big scam. I paid them almost $2100.00 before i realized they werent paying my creditors. Then, they disappeared. I was paying them with ACH debits from my checking account, and my bank was kind enough to help me get back about 60% of the money by filing some paperwork.
Do yourself a favor and research this carefully. Make sure the company you're doing business with is on the up and up. Also, take note that using one of these services will generally have a negative effect on your credit. Mike |
#4
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They haven't told me what fee they will charge. But from the debt he said he could shave off for you is alot. What they will do/are going to do that I can do it myself??? If I know what they will do, I will try to do it myself!!! I don't think that I will be able to get 0%APR anymore at this point. As my score getting lower, those banks are like suckers, they raise the interest rates even much, much higher! In that case, a lot of the payments you do will take care of the interests and will take very little care of the principles. Therefore, you'll be taking much longer times to finish your debt.
Paying minimum on the lower int rate cards and paying the most I could on the higher int rate cards is the way I can do now. If I know what they can, I can do it myself, I will definitely try. Also, I'm really keen to find out what the drawbacks if people get into this type of program. He sounded pushy on the phone and like a typical salesman so I told him...I wasn't decided anything now...
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-SSSVX 92 LS-L TEAL since Aug '01 92 LS-L YELLOW since Mar '05 |
#5
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The trick they use is to write to your creditors and say "Mr X cannot afford to pay his monthly payments of $1000 so we will be taking over his debts and paying you $600 per month"
They then write to Mr X and say "We have negotiated your debt repayment down to $750 per month. Please sign the enclosed standing order." 5 years later Mr X finds that the debt is still outstanding, has been accruing high interest and is now more than the initial figure. Mr X also now has a bad credit rating.
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Andy ------------------------------------------------------------------------------------ If I would be a young man again and had to decide how to make my living, I would not try to become a scientist or scholar or teacher. I would rather choose to be a plumber or a peddler in the hope to find that modest degree of independence still available under present circumstances. -- Albert Einstein, The Reporter, November 18 1954 |
#6
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It came in the mail, just burn it. If you want out then go look for a reputable company.
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.Karl. Southwest members, click here to check in!CA,NV,AZ,UT,NM,OR,CO Wanted...your busted SVX! Watch out Earl, I'm comin to getchya Return of the Pissed Platypus! X2 My dream (other than a pearlie) 1.8 SVXi and a laguna blue spoiler...somewhere I decided to quit drinking, but I didn't like it so I quit not drinking. |
#7
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I agree with Earl: No sense paying someone to do what you can do yourself. If you're really in a bind, YOU can (and should) contact creditors to negotiate arrangements to settle your debt. Reputable lenders will consider reasonable input, unless you've stiffed 'em for so long they've begun repo/forclosure proceedings or turned the account over for collection.
Debt-consolidation loans might make economic sense in some instances, but remember that you can't borrow your way out of debt. (I figured that out years ago when I started cash-advancing on credit cards to pay the mortgage.) dcb |
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