I Have Too Much Debt
Posted on July 27, 2009 at 3:11 am
Credit counseling entails sitting down with a credit counselor to discuss all your options regarding budgeting and financial management; if they see the need, they will enroll your account to a debt management program, wherein all your debts will be consolidated into one loan and you will be paying a small amount to the company each month, and they in turn will distribute the payment to all your creditors. In a DMP one may also receive a lower interest rate (typically 15%) and no fees and other charges.
Debt settlement on the other hand allows you to pay a lesser amount on your balance. It may take 40-60% of that amount for the debt to be settled. The creditor will forgive the rest of the amount.
Posted on July 27, 2009 at 3:25 am
how lng wiill it take for my debt to be paid off in counseling and in settlement
Posted on July 27, 2009 at 4:07 am
If you have too much debt and you are looking at Credit counseling or debt debt settlement for relief, the former lasts for 4-5 years and the latter takes betweeb 12-36 months on average.
Posted on July 27, 2009 at 8:11 am
Yes, if you are thinking, "I have too much debt!" these may be good choices. DMP's as previously mentioned last 5 years on average, whereas debt settlement programs really vary depending on what type of payment the person can afford and if they have any savings they can dump into the program right off the bat. On average I would say they last 2-4 years.
Posted on July 29, 2009 at 3:27 am
If you have too much debt, decide whether you which solution is best for you, debt reduction or debt elimination. Also, do you want to do it yourself or you'd rather hire the services of a debt relief group.
Posted on July 29, 2009 at 3:31 am
Being in debt is normal in a credit card society--and maybe the system is to blame for it, but if you are saying that "I have too much debt" and it is a recurring statement, then the problem is with you. Either you do not know how to manage your finances, you cannot manage your finances, or you simply do not have anything to manage in the first place.
Posted on July 29, 2009 at 7:50 am
I have too much debt in collections, which of the options that Tom Ace mentioned would be best suited for me?
Posted on July 30, 2009 at 4:41 pm
I have too much debt too! Wow I am soooooooooo glad I found this. Very helpful stuff thank you everyone!
Anyway, right now I owe $65,000 (roughly) and have 6 different credit card accounts. I am behind on two of them, and the other four are current but the interest rates are through the roof! Any suggestions? Is bankruptcy the only option I really have with the amount that I owe (I mean, this is so much more than what everyone else owes!).
Posted on August 9, 2009 at 9:34 am
Hi Hailey.
I don't think it is. Your debt amount is high and you are behind on a couple payments and dealing with rediculous interest rates, but many people in the same exact situation have managed to become debt free.
The truth is- if you aren't confident you can catch up on your payments and not fall behind at all over the next 5 years, credit counseling isn't going to do it. You may have to consider settling your accounts to resolve the debt without filing for bankruptcy. While settlement has a negative impact on your credit, it is certainly not as bad as bankruptcy and you may save a lot of money in the process.
You can actually fill out a form on this website to get a free consultation and to find out what option may be best for you!
Posted on August 11, 2009 at 4:37 am
I think it is a good thing when one says to himself "I have too much debt." However, it is bad, when one, having already realized that fact..does nothing about it.
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