I am going to use this as a sort of forum right now. I have one question.
What are your opinions on "Debt Management Programs?"
Angel Note
"If Music be the food of Love, Play on!" -- Wm. Shakespeare, Twelfth Night
"If Music be the food of Love, Play on!" -- Wm. Shakespeare, Twelfth Night
7 comments:
I really like the program that the church suggests. You take your highest interest debt and put extra to it until it is paid off. Then you take the next one. etc..
I personally don't think it's right to just bail on owed money.
Let me say this: The program we're looking at right now does NOT suggest defaulting. In fact, they suggest that even filing bankruptcy should be the absolute LAST choice.
What they do is negotiate a lower interest rate with the lenders, then (for a small fee) work one payment with the customer, from which they pay all the lenders, guaranteeing that all debts will be paid off in five years.
It is not easy, but it even reduces the monthly payments, while still allowing everyone to get paid the full amount owed (minus the back-breaking interest rates).
It SOUNDS good, but I am wary of anything that deals with our credit. This would, for good or bad, also freeze those accounts so we could not even be tempted to charge more while paying them off. We would simply be done with them.
What do you think?
Do you know any lawyers?
I can't even remember the last time I was in the SAME ROOM as a lawyer!
I read in the paper to NOT do them, they just charge you more money and you are worse off. Some are even scams. I would be very, very careful.
Well it IS a way to avoid bankruptcy, but you have to remember that they ARE going to be making money off of you. I guess if there is no other choice than bankruptcy then your options are them, bankruptcy, or being super strict with yourself, your budget and living expenses till you pay them off.
If I remember hearing correctly, you can actually contact your creditors and work out a deal with them yourself. You will most likely have to cancel any cards and not be able to get any cards with them in the future but if you are able to show that you are able to make payments but not the full interest payment they may be willing to work a lower interest rate with you rather than pay someone else to do that for you. Just an option.
I have also know a lot of people to use Dave Ramsey's way of paying off debt. He has a book, Total Money Makeover (I think) (he also has a web page) that has a lot of useful tips for eliminating debt. Some of his ideas are way out there, but it gives a starting point and he has some good suggestions.
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