Help, Credit experts! What do you do with THIS real case? - budget and credit counseling services
The person who came to help me reach $ 40K income, health, debt in U.S. $ 140K (yes, hundred and forty thousand dollars) ($ 60K in patience Student Loans, $ 7K Loan cars, unsecured debt remaining $ 50K of the limit of the credit card debt, especially in the failure rate of 30 +% and the rest are loans to friends. about $ 1K tax.). Some claims are cool (30 to 60 days) in arrears, but no one has yet gone to collections. BK N previous write-offs, collections or judgments. 3 All credit reports are not serious errors, the FICO scores unknown. Person is motivated, has already been shown to cut my recent credit report and invoices, credit cards, developed a detailed list of property (auto + $ 3K in illiquid assets in cash + $ 1K), liabilities, and prepare presentation of a monthly budget.
What do you advise?
Is a Consumer Credit Counseling Service debt management program, the best solution? What are their successes or failures of debt consolidation DMP? Costs and benefits? Please answer the questions you asked. Thank you.
Saturday, January 16, 2010
Budget And Credit Counseling Services Help, Credit Experts! What Do You Do With THIS Real Case?
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4 comments:
I've never had one of my clients successfully complete a program of debt consolidation. I saw these enterprises take money from people, not to negotiate debts, consumer and usually ignored when it sued in bad debts. These debt management programs are the same as the filing of a Chapter 13 bankruptcy, unless the bankruptcy laws that protect you against creditors and can be sure that they withdraw their money. They have no protection when it comes to debt consolidation companies. It is a big risk.
Because this person has a regular income, he / she is a good candidate for Chapter 13 bankruptcy. After 3-5 years with a Chapter 13 plan, is outstanding unsecured debts legally discharged. It will be difficult, their credit score and debt negotiations, thanks to a debt relief organization.
I would never recommend that an advisory program. These places will only charge lower prices and you pay your bills for you with your money. This can hurt your credit as bad as a bankrutpcy.
You can do this with a little discipline. I suggest that credit repair. Find out everything you about it. From their website.
That sounds awful ... is an indictment of our system of credit that was entitled to earn up to $ 50K in unsecured revolving credit facility. As for me, the bankruptcy is the best option to avoid debts.
Realistically, the current debt of at least 20 years to pay ... is overwhelming. The best way is to file BK, unsecured debt getting deleted after 3-5 years, then pray that education is expensive ($ 60K) one day lead to a job that has a decent income.
CCCS may be the best option, but first I want all these people I owe the debt and to seek better terms before entering into arrears with an agreement to be able to refer to it from your credit record could. at least until the exit hole. To expand student loans and 20 years. Maintain the current payments and work together in order to pay one card at a time when. Good luck
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