I have two huge credit card debts and don't want to get scammed by debt collectors.?
I have two huge credit card debts that I’m trying to settle. My debt has been sold to a company called CPC-Central Portfolio Control. I don’t want to get scammed, as I’ve read that this company has a history of messing up your credit more than it already is. Not only that, but I’ve also read that they make it extremely difficult to pay off your debt. Making you actually owe more than you do. I don’t have money for an attorney to help me through my options. What can I do??
If you owe the debt then they are not "scamming" you, they are trying any means necessary to collect on the debt.
You need to have knowledge of how to deal with debt collectors. Take the time to do research on your rights.
http://www.fair-debt-collection.com/rules/fair-debt-collection-act.html
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
http://www.privacyrights.org/fs/fs27-debtcoll.htm#1
The first thing you should do when contacted by a debt collector is to send them this letter.
http://credit.about.com/od/debtcollection/qt/validationltr.htm
August 29th, 2010 at 9:58 amContact Consumer Credit Counseling Services. It is theoldest and most reliable service.
August 29th, 2010 at 9:58 amThe sevice saved my friend from foreclosure and bankruptcy.
Are you saying your debt has been sold to a collection agency, or that you are thinking about paying for "credit repair" service?
Either way, your best option is probably to file Chapter 7 bankruptcy if your expenses exceed your income.
August 29th, 2010 at 9:58 amMake sure you communicate with them in writing only!! No phone conversations….
August 29th, 2010 at 9:58 amWith credit card balances that high, I would recommend debt settlement as opposed to bankruptcy. Bankruptcy laws have changed and erasing credit card debt is no longer an option. Typically you would be required to go into a repayment bankruptcy which would require repayment of the debt. (100% in many cases.) Not to mention out of pocket fees.
With debt settlement your debts are settled with your creditors. Typically debts are settled for between 50-75% of what you owe and the monthly payment is usually ½ of what your normal monthly minimum payments are. There should not be any out of pocket costs to enroll in a good debt settlement program.
August 29th, 2010 at 9:58 amAll you can know about credit card from this site. You can get some affordable good links from that site. It will help you a lot as it helped me.
http://creditcard-guide.freehostia.com/
All the best.
August 29th, 2010 at 9:58 amHere is an article that might help you.
August 29th, 2010 at 9:58 amPlease do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan.
August 29th, 2010 at 9:58 am