Are people in the US starting to realize that credit cards aren’t all they are cracked up to be?
I have recently paid off and cut up all credit cards. Do you think that all Americans should do the same?
It is such a relief to not have all that debt hanging over my head. I also pay cash for EVERYTHING now…if I don’t have the cash…I don’t have what it is that I wanted.
If everyone in the US was to do this, how would it effect the banking institutions as well as our society as a whole?
In addition:
I also seem to have MORE money now…not paying the credit care company is actually quite nice!!
No more fees no more APRs to worry about…
If everyone did this, the banking institutions would crap themselves. They would have to find new ways to make money.
They would also have to compete more, driving down rates.
The problem is that not everyone can pay off their debts.
How badly does debt relief (not consolidation) hurt your credit?
I’ve heard that debt relief is almost as bad as a bankrupcy- is this true?
No, it’s not as bad as a bankruptcy, but it will definitely ding your score. After 7 years, you can have debt relief notations removed from your record. Bankruptcy stays for 10 years. Please make sure you are dealing with a reputable company.
You probably are wondering what these government debt relief programs are all about. In order for the US capitalist system to be effective and to aid the country’s economic recovery it is essential that the general population not succumb to financial loan failures. The US government estimates that in the bigger recovery picture, coming to the aid of many ordinary Americans who are in over their heads in credit card and loan debts with government debt consolidation programs will benefit the country’s recovery.
If you are one of the many who has spent more than you’ve made and gotten to the point where making your minimum monthly balance payments on loans and credit cards are a challenge then you will want to continue to learn more. No doubt you are also concerned about protecting your credit rating – this may be the path to help you out of your financial challenges. Headlines tell the tales of job losses, falling home prices and rising consumer debts along with increasing living costs.
Money issues are a source of stress and worry during these trying times for almost all of us. If you are reading this then you are likely looking for some assistance and rightly so doing your homework to look at options. One option might be to look into the services to help take the load off so you can breathe a little more freely. The benefit of government programs is that they are often based on your income so repayments will not over whelm an already struggling family or individual’s situation.
The FTC (Federal Trade Commission) website offers helpful information and free publications on credit and finances such as Fiscal Fitness, Choosing a Credit Counselor and Knee Deep in Debt to name a few. Although these debt consolidation programs may offer you relief for now, it is highly recommended that each individual also begin to learn new money management techniques so these patterns are not repeated. If they don’t teach it to your children in school then take the time to share what you’ve learned with them.
How do I use the Mortgage Forgiveness Debt Relief Act of 2007 to negotiate a fix loan on my 1st and 2nd mtg?
My first mortgage is with Aurora Loan services for $355,200 @ 6.875 5 year fixed 2nd mortgage at $88,800 with Washington mutual @ 13% 30 year due in 15 Balloon. I cannot refinance since my value has dropped around $20,000 is there any law that would allow me to renegotiate this with my lenders? I still have 3 years left but I rather do this now and take advantage of the relief act. I am not in default and want to avoid being in default when negotiating any tips you guys could give me? Thanks!
Unless congress/senate change the law, the bank doesn’t owe you anything and isn’t required to change the terms of your loan.
The debt act merely states that if the bank does change the terms or forecloses that you may be able to avoid having cancellation of debt income on the amount you fail to pay back to the bank.
can my creditor sue me even know I have company to relief my debt?
can my creditor sue me even know I have company to relief my debt?
Are you saying that you are going through one of those credit consolidation companies? If they are not paying your bills like they said, then yes, the credit card can sue you. We need a little more info to help you, but it sounds like that is what you did, and in the process, signed a document that told the credit card companies to contact them and not you, so they are not calling you to let you know that your bill is not getting paid, but you will know when they knock on your door and serve you the documents that say you are being sued. If this has happened, you need to contact all your other credit cards ASAP and try your hardest to get yourself out of the hole they created for you.
