Debt And Unemployment
Posted on August 31, 2009 at 10:39 pm
Debt and unemployment: Debt relief
With regards to credit counseling fees, credit counseling is non-profit but their Debt Management Plan would cost around $25/mo. after the one time set up fee.
There is another debt relief option for you, debt settlement. Debt settlement companies would charge 15% of your total debt amount -spread over 18 months or they will take between 20-25% of the settlement amount.
How much did you say you owe?
Posted on August 31, 2009 at 11:08 pm
If your unsecured debts amount to less than $10,000 (with high interest rates) credit counseling may make sense to you, but if it's over $10,000, why not try debt settlement instead. Especially if your accounts are already past due or nearing it. Debt settlement may be able to trim down your balance to more or less half.
With regards to fees, somebody correct me if I'm wrong, if you owe $10,000, your monthly payment will be about $150.00/month. If you owe $20,000, your monthly payment would be about $300.00/month.
That's a lot of difference from a consumer that's paying the original minimum credit card payment of $800/month.
Posted on August 31, 2009 at 11:39 pm
cut my debt into more or less half, interesting, sounds like debt settlement will work with unemployment...but how does one choose a settlement company?
Posted on August 31, 2009 at 11:55 pm
Has this become a debt settlement and unemployment thread? Anyway, to find out if the debt settlement company is good - meaning that it's not going to run away with your money.. you can check the company's profile in the Better Business Bureau site (BBB www.bbb.org), aside from the BBB, consumers who are looking for good and reputable debt settlement companies should also check their membership with the ff:
TASC www.tascsite.org
USOBA www.usoba.org
IAPDA www.iapda.org
It's also a plus of the settlement company is member of their state Chamber of commerce and the US Chamber of Commerce.
Posted on September 1, 2009 at 12:10 am
okay..got that, thank you! would you know though, how much i'd get from unemployment? i'm thinking of using that to enroll in either of those debt solutions that you've mentioned- what's the government's formula?
Posted on September 1, 2009 at 12:24 am
I think it's a good idea to use your unemployment check to pay off your debt - and I'm not too sure about the formula, but I think that they would base the amount that you're going to receive, on your most recent income- and it is taxable-so when you file your tax return, include your unemployment income.
Posted on September 1, 2009 at 2:15 am
Personally I think that one needs to have a steady source of income if they are considering to pursue debt consolidation as a means to eliminate debt. I know that debt and unemployment is a very relevant issue especially in figuring out why most of us are in debt, but most debt consolidation companies require fees that need to be paid. Enrolling in a debt consolidation company, either via debt settlement or credit counseling, is a good thing, but without disposable income, one may just fall in a worse situation than they were before.
Posted on September 1, 2009 at 3:11 am
So what is the best option for me given that, Purple Cow? I am in debt and unemployed.
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