Comments on: Need Some Help On Credit Card Debt Reduction?

By: D. G

D. G — Tue, 14 Jul 2009 00:16:43 +0000

Most of the tax settlement firms that advertise heavily are complete ripoffs. Their fees can run in to the thousands of dollars and the IRS still says "No" a vast majority of the time.

The IRS does have a settlement program for those people that owe more than $10,000. It is called an "Offer In Compromise". It is a complex matter. The "form" for the offer is 44 pages long and the IRS has 2 years to decide. The tax settlement firms will always tell you that you qualify. They tell everyone that they qualify but the truth is that the IRS says No over 80% of the time.

If you owe under $10,000 in taxes, there is nothing that anyone can do. Enter in to an installment agreement with the IRS and stick to it. If you owe more that $10,000, read up on "Offers in Compromise" at IRS.gov and, if you think that you qualify, contact a CPA or EA in your local area.

I don't know a lot about debt settlement companies but I believe that they also have a bad reputation for being ripoffs.

By: Anothercoilgun

Anothercoilgun — Mon, 13 Jul 2009 15:58:17 +0000

And I thought a career was excting and challenging.

By: lorax2013

lorax2013 — Sun, 12 Jul 2009 21:51:46 +0000

Welcome to the new world financial order. You won’t be able to go to college without taking on a huge debt which cannot be erased. In effect, you will never be able to earn money as a professional unless you are a debt slave first. Meanwhile the banks make guaranteed money on these loans because the government backs them with your tax dollars. Time to wake up America – the banksters OWN you.

By: curious

curious — Sun, 12 Jul 2009 16:14:38 +0000

If possible, try to get your higher rate balances onto one low rate card. Then use the free introductory period (sometimes up to 12 months) to pay down the principal. Here's a site that features many 0% balance transfer credit card offers: http://www.creditcards.com

By: Camilla

Camilla — Sun, 12 Jul 2009 02:05:32 +0000

I think you need to take a long hard look at yourselves. Dont go with the debt reduction agencies as other have said. Talk to your bank – can you extend your mortgage – its the cheapest money you will ever have -can you up your income, get boarders, a 2 nd job , sell stuff Get real before you loose your home
http://lissiearticles.com/how-to-get-out-of-debt-and-save-money/

By: Anothercoilgun

Anothercoilgun — Sat, 11 Jul 2009 20:59:49 +0000

Whats next, loans for child baring?

By: Steve A

Steve A — Sat, 11 Jul 2009 14:30:42 +0000

The services you hear about on T.V. will cost you money but is worth it in the long run. They will negotiate with the credit card companies and reduce the amount you owe and stop the recurring interest debt. I'm not sure if they still do this but years ago I went to the Chamber of Commerce in North Carolina and did the same thing for free. I had to bring them all of my credit cards, which they promptly cut up. They then contacted all of my debtors and got them to stop adding interest to my debt. Every week I brought the Chamber an agreed upon amount which they divided up among creditors. My only out of pocket expense was for the credit report, which was about $20 (about 20 years ago). Good luck.

By: mom digging out

mom digging out — Sat, 11 Jul 2009 13:56:54 +0000

It does affect you.

What they do is not pay your creditors for months and then try and settle for less. No magic. No special skills. They just don't pay. It'll trash your credit and you will be treated as if you filed for bankruptcy if you try to get a home loan.

Also, if they don't pay your creditors. you, and you alone are still responsible for the debt. Your creditors will come after you and not the company you hired.

By: John B

John B — Sat, 11 Jul 2009 10:57:19 +0000

Affordable debt consolidation allows you to lower your bills while still meeting your obligations. You will be able to reduce your monthly payments on all of your debt by paying one lower payment to a consolidation company.

The debt consolidation company will make you a loan that covers all of your obligations. They may also be able to negotiate lower principle and interest rates with some of the credit card companies and other unsecured debt owners.

By: Induced Karma

Induced Karma — Fri, 10 Jul 2009 22:59:43 +0000

You certainly aren't alone, so many are facing the same thing.

What you need is a third party, independent advocate, to intervene on your behalf. Call Lifeline or the Salvation Army and ask to speak to their financial counsellor. If you belong to a church, they may have someone who can help you. You may have to wait a little, but do explain how urgent it is and they may be able to delay things for you. Whatever you do, don't go into further debt, trying to get another loan to pay out what you already have.

Also please don't get involved in any 'new schemes'… you have to work with what you have now. There is light at the end of the tunnel.

Best wishes.

By: SNIPEQUEST

SNIPEQUEST — Fri, 10 Jul 2009 21:10:27 +0000

I have left the country cause of my student loans. I owed 30 k and somehow went from a $270 min payment to a $550 min. payment. Also i went from 30k to 57k in less than 2 years!!! I had debt collectors harrassing me to the point i thought i was being followed on a daily basis. l couldnt sleep at night and even had purchased a gun and a big dog. Now i am in Russia.

By: Les R

Les R — Fri, 10 Jul 2009 16:27:45 +0000

Debt-settlement companies promise that you can get out of your debts for pennies on the dollar. Typically, these outfits demand that you stop paying your creditors and instead send the money to them. After a few months, the debt-settlement company promises to open negotiations with your lenders and use the money you've sent to pay them.

The idea is that after a few months of not getting paid, your creditors will agree to a fraction of what they're owed.

Of course, your credit will be trashed at this point, you'll have paid fat fees to the debt-settlement company, and you may be facing lawsuits from your lenders. That's if you're lucky. If you're not, you'll risk all this, and the debt-settlement company will disappear with your money. If you need more details, read "Debt settlement: A costly escape."

Better alternatives include:

* Credit counselling. Legitimate credit counsellors have debt-management plans that reduce or eliminate the interest rates on your credit card debt.

* Bankruptcy. If you can't pay your debts, you may be better off getting a fresh start through bankruptcy. Your credit rating may recover more quickly, and you'll be able to keep the cash you would have otherwise sent to the debt-settlement company. Consult an experienced bankruptcy attorney who can evaluate your situation and discuss your options

By: hayati k

hayati k — Fri, 10 Jul 2009 15:31:48 +0000

I wouldn't use any of them they are rip off artists. They take your money and do nothing, been there done that. Go to Consumer Counseling, in every city or county, it is free, non profit and they don't charge but they will contact all the places you owe money to and get you with lower payments and great ways of getting out of debt !! They are well known by all companies and acknowledge Consumer Credit Counseling as serious and good to work with .

By: applyforstudentloan

applyforstudentloan — Fri, 10 Jul 2009 15:08:36 +0000

Going to college is a big step in life. It is exciting, challenging and costly. One of the biggest stresses of going to college is figuring out how to pay for it. For many students paying for college involves getting student loans. Grants, scholarships and other free money does not usually cover all the costs and the only other place to turn is to a student loan.

By: jennpf

jennpf — Fri, 10 Jul 2009 13:37:31 +0000

Sallie Mae has a monopoly on the ENTIRE student loan industry. Not only do they make the loans under several different names but they OWN the collection agencies. They WANT students to default or fall behind in payments because they make MORE money than they would on students that pay off their loans early. The interest rates they charge should also be capped! This is the only industry that is still getting away with illegal lending practices! (KICKBACKS)