Have a question about paying off debts..please be nice...

[qtnguyen87]

Well i have some way over due credit card debts, about $3000 total and i want to pay them back monthly. I was wondering if there are any legit online consolidation sites online that will help you with this and pay off all your debt by low monthly payment.

BTW! Im new here in the forums! How are you guys!!!

 

[Proprioceptive]

Oh man... what a way to introduce yourself to ATOT. I hope you have your lube handy.

Oh, and I can't really help you, but good luck.

 

[deadlyapp]

that low you won't get much consolidation. Over a certain amount yes, but that low, probably not.

The only thing I can recommend is pay as much as you humanly can each month to pay them off.

I have about 5-6 k in credit card debt at the moment, spread out on multiple cards. I've always been able to pay the minimum though and usually pay well over the minimum but due to my spending haven't reduced them until recently. My new job gives me the necessary flow to pay them down.

The only thing I can recommend is look into another card that will allow a good transfer. Even with my cards at a high level I was approved for a card that gave me zero interest for a year on transfers. I paid the 3% transfer fee (much lowre than that 11-23% interest per month) and went on my way.

 

[FleshLight]

1. Default
2. Settle debt for less than full.
3. ???
4. Profit!

 

[Babbles]

Most of those consolidation places are damn well near a scam. I too once had more credit card debt than was ideal, and the best thing I did was just to call up the credit card company and work out a plan with them. From what I gathered most, if not all, will be willing to lower the interest rate if you commit to a payment plan. However if you miss making a payment then things are null and void and you get screwed again.

So in essence, just give the credit card companies a call.

 

[guyver01]

Call The Credit Card companies... explain your situation..
most.. if not all... will work out a debt lowering plan.
THAT is exactly what the 'debt consolidation companies' do themselves.

 

[eLiu]

What kind of rate are you looking for to pay it off? How's your credit score?

One option would be to apply for a loan through like lendingclub.com, prosper.com, or lendingtree.com. You can apply for personal loans there in some amount over a period of usually 3yrs. The interest rate you get is computed as a function of your risk factors. Then other people will sign up to back small amts of the loan.

I see a lot of loan applications from people trying to pay off large credit card debts where they couldn't consolidate through the cc, couldn't get a bank loan, etc.

 

[Via]

$3000 isn't really that much. I would definitley try to transfer all of it to a single card at 0%.

But if you're having trouble with the payments on $3000 your financial situation must be pretty grim.

I can understand, though. When I was an undergrad I got a card with $1000 limit sent to me. I, of course, maxed it out within 3 months.

$1000 seemed like the end of the world at the time.

 

[amdhunter]

No. First - don't call any debt consolidation service. They are all scams.

Second - Call your credit card company. Many have programs that will let you stop the interest, and let you pay down your debt according to a payment plan they will help you set up.

You can always try and find a way to settle on your own through court, but be aware that any money you "save" from settling, you'll have to pay taxes on. Seeing as it's only 3 grand or so, that isn't a big deal.

 

[SunnyD]

No. First - don't call any debt consolidation service. They are all scams.

Second - Call your credit card company. Many have programs that will let you stop the interest, and let you pay down your debt according to a payment plan they will help you set up.

You can always try and find a way to settle on your own through court, but be aware that any money you "save" from settling, you'll have to pay taxes on. Seeing as it's only 3 grand or so, that isn't a big deal.

Third, give away free iPods.

 

[tk149]

I was in the same situation once. I opened a new credit card that allowed me to transfer my balance from other cards at 0% interest for a year. I had to pay an upfront fee, but over a year I still saved money.

I then paid off the card over the next year, and dang it felt good to be debt free!

This assumes that you can afford the minimum payment, and have a decent credit rating that will let you get a new credit card.

 

[torpid]

I consolidated some unexpected debt by taking out a loan with my car as collateral - basically a used car loan. I had already paid the car off by that time but its worth was still quite high. I got a really favorable interest rate that way.

 

[jdjbuffalo]

More information would be nice.

Is the debt still with the credit card company or has it been charged off? If it's still with the credit card company then do like the others have suggested and work out a payment plan by calling them. Make sure to get the agreement in writing.

If the debt has been charged off then you will be dealing with a 3rd party who's bought the debt for pennies on the dollar. You can typically negotiate with them. You can typically get them to settle the debt for anywhere from 20% - 50% of the original amount. They will typically want to do this as a lump sum. So do offer payment plans but they are very risky and you better not miss a payment.

Also, you will have to pay taxes on the amount that they forgive above $600. You can get the IRS to waive the taxes if you can prove you're insolvent (you'll need a tax professional to do your taxes to make sure you handle this correctly).

You can also ask them to remove the negative information they have put on your credit report. Make sure to only deal with them via mail. You need to have everything documented in case something goes south.

Do not use the consolidation companies. Most are scams and everything they offer is what you can do on your own without having to pay them.

 

[Key West]

Wait.. $3K in total? That's nothing.

I accumulate about $800-1200 a month (and I use it for everything) and fully pay it off monthly.

 

[IceBergSLiM]

http://www.creditboards.com