Comments on: Debt Relief & Management Tips : How to Consolidate Business Debt

By: Chuck Z

Chuck Z — Sun, 20 Dec 2009 10:54:21 +0000

Mortgage foreclosure is still considered to be taxable by the IRS.

By: Anthony P

Anthony P — Sat, 19 Dec 2009 08:19:02 +0000

Don't use them, for one most of them are a scam, for two, if you go into consumer credit card counseling it reports on your credit, and some lenders think negatively of it.

First things first, you obviously need a budget, stick to it, pay off as much as you can off, I'm sure you're getting hit with huge interest rates, you can look into consolidation but, alot of credit card companies offer 0% for the first 12 months, but make sure you know what it is after the 12 months!!!

Other than that budget yourself according to your income and stick to it, most of those companies are scams so stay away if at all possible!

By: pham1skee

pham1skee — Fri, 18 Dec 2009 20:34:30 +0000

If you are in a bind try contacting your creditors, many of them have hardship programs they can set you up on. Another option is CCCS, they will contact each of your creditors and submit a proposal which generally lowers your monthly payment and interest rate. I would not go to a Debt Settlement Company or Attorney. I work for a large global bank and we are done dealing with them. We've sent them letters advising them to stop taking on our Customers, and they continue to do so. They brainwash the Customer into thinking they will take care of everything. They tell these people not to answer their phone or open their bills. I know of three global banks that will not deal with them…Citi, GE Money, and Bank of America. Our company has taken a new stance…If we receive documentation from a debt settlement company along with a cease and desist we refer it to our attorney network to file the paperwork in your local court to try to obtain a judgement. So….I wouldn't suggest one of those companies. CCCS or contacting your creditors directly is your best bet.

By: justapiece44

justapiece44 — Fri, 18 Dec 2009 13:52:19 +0000

It depends. Many debt relief companies out there are scam. Even the non profit one. The one I recommend is http://www.loansmarter.com/creditsolution , they are the best in the industry. This year alone they settled $200million in debt and last May they received Ernst & Young awards for their accomplishment.

By: purodreamer

purodreamer — Fri, 18 Dec 2009 01:53:16 +0000

CareOne offers two services: credit counseling and debt settlement. Being enrolled in a debt management program would cause your credit report to state "enrolled in debt management." This does not specifically damage your credit rating but it would make it virtually impossible to qualify for new credit while you are enrolled in the program…but that's the whole point of being enrolled in a debt management program to begin with…to stop using credit.

CareOne also does does debt consolidation/debt settlement. Stay away from any "debt consolidation" company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator's fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
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If you want to enroll in a non profit debt management program then I would advise to use the real one….CCCS. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you're enrolled in the CCCS debt management program…

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy

By: Keith

Keith — Thu, 17 Dec 2009 10:25:50 +0000

It's very simple… they take your money and then you owe more. there is nothing they can do that you can't do by yourself. It's all a scam.

By: ava

ava — Thu, 17 Dec 2009 09:18:30 +0000

Debt relief is a difficult issue many americans are now facing. Every legitamate debt relief service providers will give you advice for free. http://www.debtreliefreview.com Try visiting serveral debt relief services and inquire about your questions and listen to thier answers. You should be able to tell which ones are providing shady advice.

Hope everything works out.

By: WPMixer

WPMixer — Thu, 17 Dec 2009 06:42:21 +0000

Debt consolidation can be a really useful tool for many people, the key is of course to do a little homework and make sure you’re not dealing with a rip off merchant.

consolidationnetwork . com

has many useful links for debt consolidation comapnies

By: thetyrannyofmen

thetyrannyofmen — Thu, 17 Dec 2009 05:48:32 +0000

go to a bankruptcy lawyer……..each state is different

By: honibear35

honibear35 — Thu, 17 Dec 2009 05:14:16 +0000

There should be a non-profit Credit Counseling Services in your area. I can really empathize; mine was as high as $33,000, but thank God, it's gone. I felt like I was fighting all the forces of heaven, hell, and earth all the time.