Comments for Bad Credit Debt Relief

Comment on I recently graduated and have about 30K in debt, what is the best strategy for paying off the debt? by arj007

arj007 — Tue, 31 Mar 2009 11:50:55 +0000

I would recommend you take care of this and start to put it behind you … you can find a way to both start paying off the debt and investing it in income generating assets…

This is a company that I would highly recommend …

I had a friend who used this and they were highly efficient and friendly:

Comment on How do you collect a debt from a person who is declaring bankruptcy? by chslaw

chslaw — Tue, 31 Mar 2009 05:11:54 +0000

Until the person actually files bankruptcy, you can proceed in attempts to collect the debt in any manner allowed by law. Once the person files for bankruptcy, you must obey bankrupcy law and observe the restrictions of the automatic stay.

If the person files a Chapter 13 as you mentioned, they will be proposing a plan to pay back a portion of their debts over time. With the new bankruptcy reform laws, attorneys are working harder to make sure all creditors are listed.

Once the bankruptcy has been filed, you can file a proof of claim even if you are listed as a creditor. If there are are any assets or proceeds to be paid to creditors, you will receive your pro rata share.

Comment on Is there any option for debt consolidation if you are NOT in default with good credit but no equity? by Jennifer

Jennifer — Tue, 31 Mar 2009 04:56:21 +0000

Hi,
I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:

Comment on How do you collect a debt from a person who is declaring bankruptcy? by think

think — Mon, 30 Mar 2009 18:46:43 +0000

Well make him work for you for free. I am sure you can find him usefull to do some of your work that you would actually pay for … Let him do your garden, wash your car, or anything else. If you are talking about huge sum of the money … Then I would suggest you to make sure that the money you lend him is insured … Good luck ..

Comment on Is there any option for debt consolidation if you are NOT in default with good credit but no equity? by Elia R

Elia R — Mon, 30 Mar 2009 03:25:00 +0000

I’ve heard good things about this one.

Goodluck!

Comment on I recently graduated and have about 30K in debt, what is the best strategy for paying off the debt? by Jeanne R

Jeanne R — Sat, 28 Mar 2009 20:06:01 +0000

Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.

A. Have a garage sale and sell anything that you no longer need or want.

B.Get a temporary part time job, if you have one, get another.

Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn’t as hard as you think. Just follow the plan.

Comment on How do you collect a debt from a person who is declaring bankruptcy? by melvinschmugmeier

melvinschmugmeier — Sat, 28 Mar 2009 04:00:06 +0000

Send a lot of letters putting you in line with the other creditors. When they file bankruptcy they will need to sell assets to pay off creditors. You probably wont get all of your money, but you’ll get something.

Comment on Is there any option for debt consolidation if you are NOT in default with good credit but no equity? by Ankita

Ankita — Fri, 27 Mar 2009 15:31:47 +0000

If you really need some help, I will suggest you a site. Where you can get your Consultation free of Charge!

No credit check required to get started with your free debt consultation.

Comment on I recently graduated and have about 30K in debt, what is the best strategy for paying off the debt? by captkev

captkev — Thu, 26 Mar 2009 08:09:35 +0000

You should always strive to pay off debt quickly. However you should also prioritize the higher interest rate debt first.

This site helped me in reducing my debt considerably.

Comment on Is there any option for debt consolidation if you are NOT in default with good credit but no equity? by Ervin

Ervin — Thu, 26 Mar 2009 06:08:59 +0000

You can go for a unsecured debt consolidation loan where you can get a low interest rate compared to any banks and the added advantage would be, it will also improve your credit score as subsequent payments are made to pay off the new loan.

Here is one of the source which I know of a debt consolidation company named for your reference.