Noticed and have read some of the ideas for debt consolidation, management services and those who are teetering on bankruptcy itself. Contingent on the amounts, lateness, and overall projection of income, it can behoove a person to educate and gain counsel for which avenue is best.
To do so, read read read these forums for advisal and see if it applies to your circumstance.
Here is what happened in my worse case (real) situation.
In September of 2010 I wrote my creditors to explain my current financial hardships. Out of the five creditors, One responded via phone. BOFA immediately required $200 upfront to be paid that day so I wasn't put into a collection category. I paid and was told someone would be in touch. Two months of more payments to them and NO phone call or phone returns. Finally I get a nasty letter saying I am to call this 800#. I do . With no idea what company or who I cam conversing with. Turns out I am NOT talking to BOFA but get transfer to a Debt Management company. They were ever soooo "nice" on the phone....and said they would send me the program details and how they could bring all my debts under one management plan. Bam! I get the contract and review it. I send it over to my lawyer because there seemed to be loop holes I was not going to fall into. Firstly they make no guarantee that they can get the APR down, secondly they want $40 per month processing fee for a 60 month program...(you do the math)....I'm trying to get out of debt NOT add to it!. Upon advisal from my lawyer I opt for plan B. PLan B was: Write letters again this time offering them a payment plan that was suitable to my budget. I turned over my monthly budget and gave them the option to take it or turn my account over...I was tired of negotiating . Immediately I got three responses. Each one for even lower then the 6% APR that I was targetting along with the 5 year payback program. BOFA went down to 5% on each of my cards and closed account. Chase wouldnt budge under 6% but then again I got my payments lowered to where I could make feasible payments. CITI out and out refused to deal with me so they are keeping the account open and late pay...so be it. Household (yeah the least favorite of mine thu out the years) actually did a two month freeze ( no charges allowed) and I made two healthy payments that brought me up to current, so they at least worked with me til I got my footing. So my advise to folks is: Be persistent and pesky if you must. At some point someone will listen to you and then the negotiating must be a win win for both sides. They win by getting your monthly commitment, you win by keeping it within the budget that doesnt break your bank or cause you to go without the basics, food, clothing, shelter. BTW a NON profit Debt Counseling management can make up to 8% off your account, now that is 8% of your hard earned money that you are trying to avoid losing...is it really in your favor to pay someone else to do what you can do?
Research if you are a do it yourselfer
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