RL asked:


in credit counseling and are in a debt management program. We are making payments on time with no problems and have a reference letter from the counseling agency to present to financing departments. We have been turned down for financing by our credit union because of the DMP. Will a dealer be more likely to look at a DMP as a positive? Will we be able to get financed at a dealer w/o the “buy here pay here” ?

Peter

Chris B asked:


I was wondering if anyone has used grants to pay off credit card debt, and if so, which grants and/or where can I locate them? I am currently in a debt management program but am looking to get my debt taken care of because we have a little one on the way!!
Does anyone know much about settling your debt? Does settling debt look bad on credit reports? And if so, how long will it remain on your credit report?

The reason I ask is which is worse, having debts settled or having a charge-off sitting on your credit report until it is paid off?

Pearl

Adam asked:


I recently lost my job and my new job pays about $1300 less each month than the last one. I also have $15k in credit card debt. Things were getting out of hand, so I got into a debt management program about five months ago, who helped me set up a budget, reduce my interest rates, and move forward. The cards are all cut up, the accounts are closed, and everything was fine, but based on my old budget.

I am 26 years old and have $23k in my 401k from my last job. I’m wondering if it’s a good idea to cash out the 401k to pay off my debt. Right now, it would save me $550 a month in my payments to the DMP. I’m working on getting another part-time job, but even that may not help ends to meet. I’m a homeowner, but don’t have enough equity to get a HELOC, and my paychecks are NOT enough to cover everything. I’m living paycheck to paycheck and will have to cut into my savings very soon to keep going.

I have 35+ years left to save for retirement, but will I be screwing myself if I cash out?
I have already tried to renegotiate the payments through the DMP, but I would have to be on the plan for a year in order to qualify, and even then, it would only be temporary. Selling the house isn’t really an option, as I would probably lose money on that deal, with the market this bad. I have cut all ancillary expenses (cell is the only phone, have an efficient car that gets good mielage, I live on ramen noodles). I don’t want to lose the house and I don’t want to file for bankruptcy. I wouldn’t even consider doing this, but my income right now monthly is $700 less than my expenses. I’m working overtime, trying to get a part-time job, mowing lawns in the neighborhood for extra cash, etc. but there seems no end in sight. Paying off the CC debt would free up $550 a month, and I know the tax penalties are outrageous, but I’m running out of options. (Can’t bike to work for lack of bike and the fact that it’s 30 miles each way)
Selling the house and moving nearer to my job wouldn’t solve anything; the house may not even be worth what I owe on it in this market. Then I would lose money, while moving to a more expensive part of town. My car gets 30+ miles to the gallon, so it costs me less each day than public transit would.

My mortgage is not unaffordable. My girlfriend pays half of everything-mortgage, utilities, etc. I can’t ask her to sell the house, which we can only afford together, because of my past mistakes. My income, even without a second job, is enough to cover everything if I can only eliminate the debt. The debt, however, can’t be covered by another part-time job.

Thanks for all of you who gave advice.

Wesley

Doodoodoodler asked:


I have several credit cards, all of which have substantial balances (totaling about $14,000). I’d like to contact one of those debt management programs to see if I can consolidate my bills and get this crap paid off once and for all, but I don’t want to get mixed up in some scam or something that is going to hurt my credit score, which is a relatively good 704 right now). Does anyone have any suggestions or experience with these things? Or a company that you can recommend? I’d greatly appreciate any advice.
There is some really good advice here. Thank you all. Question: Where can I get a 0% card???

Ruth

Bigfoot asked:


My best friend 2 years ago filed for bankruptcy. She was forced to close all her accts. She had delinquincies in her report. She got a credit card for bad people with a low revolving line. In 2 years she has 4 credit cards and a good credit score. I have an unsecured credit card with a $300 limit (not even close to being maxed out) and another card on a debt management program. For 3 years I have paid more than the minimum on each card (the $300 card and paid MORE than what debt mgmt. co negotiated) I have always paid before the due date. I have a school loan that I pay on time all the time and never missed a payment. Her credit score is EXPONENTIALLY higher than mine while mine has staid in the high 500’s for a long time. AND when I just applied for a store credit card I got denied. I asked if my $300 limit card could be raised to $500 – and was denied. My 3 credit reports from last week don’t show anything out of the ordinary. I cant figure out why I was denied credit.

Karl

boxbeatle asked:


There are two types debt management programs. One is where a company negotiates lower interest rates, you pay them, then they pay all your credit cards every month.. The other type is a company that negotiates a settlement for less than amount owed. This company just pays one card at a time, and get them paid off quicker than the first option. Which type is worse to have on your credit report?

Matthew

CAZ asked:


I am looking for someone who can take a look at my credit report, tell me what to work on and in what order. I am not interested in consolidating all my creditors or any debt management program.

Leroy

davis asked:


I am living in GA,I have 20k debt in my credit cards,somebody called me from CA,He said he can work out my problem,he has a debt management program,I just need pay 10k in three years,I will be debt free after that,now he ask me to provide my checking account number,and SSN,he guarrentee to make me approved.
I am wondering whether there is such good thing existed?
how to verify his identity?how to avoid being decieved?

Thank you.

Gary

kel5204 asked:


Ok I have 8000 in collections. Way over 180 days past due. I am concerned with my future and my credit report, in making a decision to resolve my problem. What will I benefit more. Settling for less than owed with the collections agency? Or, going into a consumer credit counseling debt management program?

Andre