What's "better" debt consoling or consolidation?
We are having trouble making payments. We have reduced what we buy. how often we go out, and even our phones and cable are on the lowest plans. This debt is just to much. The credit score we have is great but I’m afraid to mess it up. I don’t think bankruptcy is for us. I just heard that either of the alternatives can be just as bad… I really need some advice. Never been in a situation like this before!
There is a government non-profit agency out there to help you at no cost.
A lot of people don’t know about it, I wish they would.
Reviews call them angels from above, complaints say it’s embarrassing.
(Embarrassing – are they serious? – they help you at no cost).
NFCC.org
June 15th, 2010 at 9:26 pmGo to the site and call the 800 number – don’t email.
Make an appointment with a local office.
They will tell you what to do and how to handle this.
They may offer to put you in a DMP program.
This is where they take over and contact your creditors and work with them by reducing interest rates, or reducing payments – they do what they can and do it well.
This DMP program may cost you as much as $25 a month depending on your ability to pay.
If you can’t afford it, they don’t charge it.
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Go buy a copy of Dave Ramsey’s book, Total Money Makeover. It’s worth the $15 and will walk you through how to deal with creditors, and how to prioritize what you pay, and how to get out of debt.
If you are motivated and willing to change your lifestyle of living beyond your means, then you can work this out and pay off your debts as a family. You will learn a lot and the future will look a lot brighter if you have a written plan that you create, and don’t think you can borrow your way out of debt with consolidation.
June 15th, 2010 at 9:26 pm