Credit Consolidation question

[DieselNuts]

Well, a few years back I was retarded and went ape shiit with a credit card. I then got another credit card that was 0% interest and paid off my other CC, but then got stupid again. Long story short, I have 2 CCs that are close to their $5k limit.

A buddy of mine was in a worse situation than me and had a total of close to $20K in CC debt. He worked out a deal with these folks:

http://www.consumercredit.com/

They did the math and said that if he continued at the same rate he was going, he wouldnt have his shiit paid for for 48yrs. They worked the deal and they say he will now have everything paid off in 2yrs and 10months.

My question is this: What kind of mark will this put on your credit score? They told him that it will be looked upon as though he is getting help on his credit and that no one will see it as a bad thing. I talked to my parents about it and they said that it is looked at very badly and is basicly one step under bankrupcy.

Does anyone have any experience/real knowledge that can help me out with this?

Thanks

[chrisdavis]

I dont know anything about that link above, however awhile back my wife and I used CCCS Atlanta as it was reccomended by Clark Howard.

http://www.cccsatl.org/



Long story short, I had a credit card that I never paid late and never went over the limit. Well one day I receive a letter that says my interest rate will go up unless I opt out. Well the letter was dated after the deadline so my interest rate tripled and the cc company refused to give me back my original rate. This and a few other things prompted us to look into a solution to our debt. So we consolodated all our cards with CCCS and they negotiated lower interest rates with the CC companies (they got me an even lower interest rate than I originally had on the card that tripled) and two years later I was debt free.


One of the rules while being in the consolodation program is that you are not allowed to use credit or apply for new credit. It is viewed as a few steps below bankruptcy while you are in the program, once you are out it pretty much goes away.

[AirMax95]

I at one point thought of doing this, but after reading numerous consumer reports and Clark Howards rips on them, I shy away.

Using services like these leave a term similar to "debt settlement" on your CR. Your CR also drops due to the nature of the system. Most of them tell you to pay them X amount of dollars up front, usually equal your minimums plus more. Then they negotiate with the creditors, but tell you to not pay them until they are done negotiating. THEN, once complete, you pay the Credit Counseling company a fixed amount @ a certain % rate.

Honestly, just get a 2nd job to mow them down if you have time. I am doing it and I pay $200 per week on one card to wack it, then to the next until I am free of consumer debt. Raises your CS, puts good marks on your CR, and makes you look better to future lenders.

[DieselNuts]

I dont know anything about that link above, however awhile back my wife and I used CCCS Atlanta as it was reccomended by Clark Howard.

http://www.cccsatl.org/



Long story short, I had a credit card that I never paid late and never went over the limit. Well one day I receive a letter that says my interest rate will go up unless I opt out. Well the letter was dated after the deadline so my interest rate tripled and the cc company refused to give me back my original rate. This and a few other things prompted us to look into a solution to our debt. So we consolodated all our cards with CCCS and they negotiated lower interest rates with the CC companies (they got me an even lower interest rate than I originally had on the card that tripled) and two years later I was debt free.


One of the rules while being in the consolodation program is that you are not allowed to use credit or apply for new credit. It is viewed as a few steps below bankruptcy while you are in the program, once you are out it pretty much goes away.

I at one point thought of doing this, but after reading numerous consumer reports and Clark Howards rips on them, I shy away.

Using services like these leave a term similar to "debt settlement" on your CR. Your CR also drops due to the nature of the system. Most of them tell you to pay them X amount of dollars up front, usually equal your minimums plus more. Then they negotiate with the creditors, but tell you to not pay them until they are done negotiating. THEN, once complete, you pay the Credit Counseling company a fixed amount @ a certain % rate.

Honestly, just get a 2nd job to mow them down if you have time. I am doing it and I pay $200 per week on one card to wack it, then to the next until I am free of consumer debt. Raises your CS, puts good marks on your CR, and makes you look better to future lenders.

Thanks for the tips guys

[Sport1.3]

HA-HA!! LIVING BEYOND MY MEANS!!!


lol, seriously though...PAY THOSE OFF!! i have a $2700 CC balance and $7500 left in student loans....i cant wait to be debt free!!

[DieselNuts]

yeah....if i knew then what I know now....

[AirMax95]

yeah....if i knew then what I know now....

I heard that sh*T! It seemed so easy while I was in college, lol. Run it up, pay it off, run it up, pay it off. Then, some catastrophe occurs and they revolve, lol.

I have learned my lesson!

[ironchef]

Personally, I wouldn't use those services. I'm in sort of the same situation now, but its getting better. Should be completely debt free by i'd say November, aside from student loans.

Basically, just sit down and take a real hard look at how much you're bringing in vs how much you're spending. Cut back anywhere you can that you know is a waste of money ex: $5 coffee @ Starbucks. And then essentially allocate the left into paying off the debt.

Always try to pay more than the minimum, and try to pay the maximum you can without starving yourself lol. Cut back as much on discretionary spending as possible. Don't go out to eat, don't go to the movies, and definitely don't make it rain at the club .

[DieselNuts]

Personally, I wouldn't use those services. I'm in sort of the same situation now, but its getting better. Should be completely debt free by i'd say November, aside from student loans.

Basically, just sit down and take a real hard look at how much you're bringing in vs how much you're spending. Cut back anywhere you can that you know is a waste of money ex: $5 coffee @ Starbucks. And then essentially allocate the left into paying off the debt.

Always try to pay more than the minimum, and try to pay the maximum you can without starving yourself lol. Cut back as much on discretionary spending as possible. Don't go out to eat, don't go to the movies, and definitely don't make it rain at the club .

LOL, but precipitation is the shiit! Seriously though, I hear what you are saying. I have sat down and listed all my bills and what it takes to run me each week. I have cut out the fast food and some of my weekly pleasures. Things are getting a little better, & I can still cut back in other areas, but I was hoping these guys could help me pay off my shiit quicker w/o fuking up my credit.

[ironchef]

LOL, but precipitation is the shiit! Seriously though, I hear what you are saying. I have sat down and listed all my bills and what it takes to run me each week. I have cut out the fast food and some of my weekly pleasures. Things are getting a little better, & I can still cut back in other areas, but I was hoping these guys could help me pay off my shiit quicker w/o fuking up my credit.

From what I read you're in debt less than $10k or so, really I wouldn't run the risk of messing with those idiots. You never know what could happen. If you had a huge amount like $50k, I'd say maybe talk to one of those debt lawyers, who would be able to get it done for like 60 cents on the dollar. But for your amount I'd only recommend maybe getting a second job, and just staying on the grind these next couple of months/years however long you think it might take.

Best piece of advice I've ever heard, is that no matter how rich you are, always live below your means, that way you'll typically never be in debt.

[DieselNuts]

From what I read you're in debt less than $10k or so, really I wouldn't run the risk of messing with those idiots. You never know what could happen. If you had a huge amount like $50k, I'd say maybe talk to one of those debt lawyers, who would be able to get it done for like 60 cents on the dollar. But for your amount I'd only recommend maybe getting a second job, and just staying on the grind these next couple of months/years however long you think it might take.

Best piece of advice I've ever heard, is that no matter how rich you are, always live below your means, that way you'll typically never be in debt.

yeah, I hear that. Mo money mo problems lol. I'm gonna stop by AT&T on my way home today to get my plan dropped to one of a lesser value. As of now, I work mon-fri 8am-5pm but sometimes later. What kind of job do you think I could get that wont interfere with those hours....serving is out of the question. I HATE serving tables.

[AirMax95]

^^^Good advice!

2nd is the way to go. Get a cheesy job that pays upwards $8/hr, 5 hours a day or more....

$200 extra per week will get em gone! I get discounts on clothes, lol.

[ironchef]

If you've got a beater of some sort, I'd say pizza delivery @ a busy Papa Johns or Dominos. I made great money when I was doing it, and you'll be making the majority of your income in cash, no taxes . Its a really easy night job, that should make you some decent bank fairly quickly, accelerate your debt consolidation. True you kind of have to serve people. but all it is is just giving people their pizza, grabbing the money, and going on towards the next one. You don't have to wait hand and foot on them.

[AirMax95]

I landed a part time at a clothing store. Look also for customer service desk jobs in the afternoon; they exist.

My availability is 5:30-9:30 weekdays and open-close weekends. Just be honest and tell them you have a FULL TIME job and need the extra income.

[DieselNuts]

If you've got a beater of some sort, I'd say pizza delivery @ a busy Papa Johns or Dominos. I made great money when I was doing it, and you'll be making the majority of your income in cash, no taxes . Its a really easy night job, that should make you some decent bank fairly quickly, accelerate your debt consolidation. True you kind of have to serve people. but all it is is just giving people their pizza, grabbing the money, and going on towards the next one. You don't have to wait hand and foot on them.

yeah, that wouldnt be bad, but I dont think my tips would be too great if I showed up in a G35 lol. And the cobra only gets like 15ish mpg in the city

I landed a part time at a clothing store. Look also for customer service desk jobs in the afternoon; they exist.

My availability is 5:30-9:30 weekdays and open-close weekends. Just be honest and tell them you have a FULL TIME job and need the extra income.

I'll start looking around for something like that. maybe even a porter at a car dealership or something.

[ironchef]

yeah, that wouldnt be bad, but I dont think my tips would be too great if I showed up in a G35 lol. And the cobra only gets like 15ish mpg in the city


I'll start looking around for something like that. maybe even a porter at a car dealership or something.

Depends really, I used to deliever in my B7 A4, no one ever really noticed. I used to get more comments delivering with a Honda Accord lol.

Theres another options for consolidation though. Do you really need two cars? Sell something, pay off more debt .

[DieselNuts]

Depends really, I used to deliever in my B7 A4, no one ever really noticed. I used to get more comments delivering with a Honda Accord lol.

Theres another options for consolidation though. Do you really need two cars? Sell something, pay off more debt .

The G is for sale and has been for about 2 months. I've had some prospect buyers, but mostly tire kickers so far. I'll look into the pizza delivery thing though. I've just always heard that the crappier your car, the better your tips lol

[Sammich]

Depends really, I used to deliever in my B7 A4, no one ever really noticed. I used to get more comments delivering with a Honda Accord lol.

Theres another options for consolidation though. Do you really need two cars? Sell something, pay off more debt .

or just crush the mustang and say it slide off a cliff

[DieselNuts]

or just crush the mustang and say it slide off a cliff

i'd rather do that to the G. the cobra is my baby.

[Sammich]

I landed a part time at a clothing store. Look also for customer service desk jobs in the afternoon; they exist.

My availability is 5:30-9:30 weekdays and open-close weekends. Just be honest and tell them you have a FULL TIME job and need the extra income.

same thing i was about to say...try a place that closes fairly early so u can at least get some sleep and go back to the 8-5

[AirMax95]

Send my subie with it!

[ironchef]

Is the G paid off?

[DieselNuts]

Is the G paid off?

[ironchef]

Are you selling for more than what you owe?

[DieselNuts]

slightly. I def. wont go upside down in it. I cant afford to do that. Carmax offered me $13k and I told them to suck a dik

[ironchef]

Well if you still have your stock parts, I'd say put those back on, and get some quick cash from the aftermarket parts if you could.

[DieselNuts]

Well if you still have your stock parts, I'd say put those back on, and get some quick cash from the aftermarket parts if you could.

yeah, already done that. The only thing left on the car that isnt aftermarket is the springs. If I replace those with stock parts, I will have to get it re-aligned...

[AirMax95]

If I decide to sell my car, I am going to match the buyers offer just to get rid of it. I want something else, and I pay too freaking much a month for the "car".

[DieselNuts]

If I decide to sell my car, I am going to match the buyers offer just to get rid of it. I want something else, and I pay too freaking much a month for the "car".

yeah, an extra $500/mo would make getting out of debt A LOT easier

[ironchef]

Not only that, but cheaper insurance too and various other maintenance costs.

[DieselNuts]

exactly a guy wants to come buy it from NC next week. I hope he follows through