Archive for September 2009
What is the best way to manage my debt while planning for my wedding?
I need to save $10,000 by August 2007.
I have $24,000 in credit card debt with $30,000 in Limit and my average credit card interest is 18%.
Is it smarter to save money in savings or to pay off credit card bills and have more money available.
It is always best to pay-down credit card debt!
But I fear your plan is simply "robbing Peter to pay Paul." For example, if you were to pay $500 toward your credit card this month. Then, charge $500 next month towards your wedding expenses, the credit card company will charge you 18% on the balance, which will remain unchanged. Grace periods do not apply unless you pay off the balance in full. However, if you can pay more than you charge for your wedding, you would save a few hundred on interest. Every little bit would help!
With interest of a whopping $360+ per month, I would strongly advise you to pour every dime to paying off this debt. Large consumer debt is NOT a good way to start a marriage – the #1 cause of divorce is financial difficulties.
Far too many brides fixate on the wedding, rather than the marriage. Perhaps focus more on making a firm foundation for a lifelong marriage free of debt than a one-day party. Scale it back to something a little less expensive.
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managing med school debt?
for those who are in med school or who are already doctors, how are you managing your Debt? was it harder and more stressful than you thought or less stressful and difficult than you thought? tell me everything.
ya, im already gonna have to work my ass off mentally, i dont want to have to do it pyhsically too.
Well I am in medical school and fortunately both of my parents are doctors and successful business owners so they are able to pay for my schooling without any problems. However most people have to take out loans and my friends in medical school with me have loans and they try not to think about the Debt. When it comes to paying back loans they are generally very flexible with you and let you pay a very minimal amount each month as long as you are making consistent monthly payments. If you are called to be a doctor..and believe me all the work is not worth it unless you are truly called..then get a loan and don’t worry about paying it back until you are a physician and are able to make payments. Good luck!
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Are there any good debt management companies out there?
I’ve heard that In charge solutions is a good company. I’ve heard that they are a non-profit organization.
We have a little over five thousand dollars in credit card debt and other misc. things.
We are only making two thousand dollars a month.
Any answers will be much appreciated!
It doesn’t show up as a bankruptcy on your credit report. It shows up as consumer credit counseling either way you go, debt management or credit counseling. Either way you decide though, credit companies review them negatively. I work for a mortgage company and we require that you’ve been in them for at least a year and we show that you have a good standing payment history. Some lenders view them as bankruptcy though and require you to pay them off prior to you buying a home. If you can avoid it, I would. If you can pay them off on your own, I would find a way. Try to find a low interest credit card that you can transfer the whole balance to, like a 0% for the first 24 months and just pay, pay, pay and don’t charge anything on it just pay it off.
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How do you get rid of debt?
Tell me step by step to. I have two jobs, and already credit cards and college Debt’s growing unbelievably fast (debt collection agencies bother me ALL the time!). I don’t know what to do. All the loans I apply for don’t take me either, and my mom has bad credit so she can’t be a cosigner. So, how do I go about managing Debt?
1. First of all, you can stop debt collectors from calling you. The best way is to simply get a new phone number. The second best way is to request directions for a "Cease and Desist" letter. This is an option available to you under the Fair Debt Collection Practices Act of 1968. Simply mail or fax a letter to the collection company saying, "Please Cease and Desist all telephone Calls for this account." Include your account number. After recieving this, they can only call you when there is a change in the status of the debt. When the debt gets sold to a new collection company, you’ll need to send a new letter. NEVER call the "800" number from a phone number that you don’t want them to call you on. You can’t block an 800 number from capturing you information and they’ll start calling that number as well to find you.
2. If you have good credit, keep it good, this should be your first priority. Stop charging new debt (I know this is hard to do.) Pay extra towards the balances if you can. The plan is to pay off the credit card with the lowest balance first then use that extra payment to pay off the next lowest balance. If you have two accounts with the same lowest balance, pay off the one with the highest interest first.
3. If an account goes to "charge-off" status, you still have to pay it. However, it should be the lowest priority. Ironically, when a credit account goes to "charge-off" it stops being "late". Therefore, eventually, your credit score can actually go up-even if it includes charge-offs-but it rarely goes up with "lates".
4. Debt automatically drops off your credit report after 7 years of inactivity from the charge-off date. Therefore, if you only have enough to pay off one charged off debt, pay off the debt that is the newest regardless of the balance. By the way, many times a creditor will accept a "settlement" of the debt. In other words, they will accept less than what you owe to pay the debt. Always get an agreement for this in writing before you make any payments. In addition, it is better to make a lump-sum settlement of 1 payment than it is to make multiple payments on a settlement. Once you make one payment, the seven years starts over again and if you miss one payment the settlement can be voided by the creditor.
5. Next, these things usually get worse before they get better. Don’t worry about your credit score at this time. If you can’t get credit now, and your score goes down, you still won’t be able to get credit. Therefore a lower score doesn’t make any difference. Ironically, a lower score goes up faster when things start to get better.
6. Finally, the most important thing is to start over. Determine that, from this point on, not to have NEW bad credit. As I stated before, bad credit eventually drops off your credit report. So, after 24 months, your credit could be outstanding. However, if you have bad credit next month or six months from now, then good credit comes 24 months after that.
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What are the risks associated with Debt Management?
allegrolawhttp://gdata.youtube.com/feeds/api/users/allegrolawEducationAllegro Law, AllegroLaw, Debt Settlement, Settlement, Credit Counseling, Debt Negotiation, credit card help, get out of debt, attorney Debt settlement, debt helpWhat are the risks associated with debt management?
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