(Crystal from California) My husband and I are trying to pull ourselves out of debt; we even overpay on credit cards and cut spending where and when we can, all the little tricks we can. But because of the interest rates, to make any real headway we would have to pay double the payments due. I am so desperate to get away from this cyclical debt that I am willing to accept a loan from family (which we are REALLY uncomfortable with). When all the tips and trick wear out, how can you reduce credit card debt and still have enough left in the bank for gas and food? And what are the monitary/tax pitfalls of accepting a loan from family? (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Archive for the ‘Eliminate Debt’ Category
I Just Signed With Debt Settlement Company–Was it a Mistake?
(Claudia from Nevada) We already sign a contract with a Debt Settlement Company they will start this Friday, July31 the first withdraw. After reading all this articles I dont know what to do? Our debt is 80,000 in credit cards and personal loans…Any advice, PLEASE????? (more…)
Will Paying Cards in Full Raise Score More than Settling?
(Terrie from Ohio) I have 4 credit cards that I settled with this past year and I did a short sale on my house. I am trying to bring up my credit score. If I pay on the credit cards so they will say paid in full instead of settled on will this improve my score at all? I know the negative part will be on there for 7 years. (more…)
How Does Debt Settlement Affect Credit?
Settling on an account may slightly improve your credit score, but it will be far below where it should be had you paid the account off in full. Furthermore, if you used a debt settlement company, then the impact of any settlement will be greatly offset by the legal action that you will likely face from your other creditors. (more…)
Worse Credit Score Impact: Debt Settlement or Bankruptcy?
(Dee from Colorado) I was told that a settlement I made on my credit card debt will reflect more negatively on my credit report than filing for bankrupsy. Is that true? (more…)
Cuomo: Debt Settlement a Rogue Industry
On Thursday May 7, 2009 New York Attorney General Andrew Cuomo issued subpoenas to 14 debt settlement companies and a law firm. Cuomo is part of a multistate effort to regulate debt settlement companies, which Cuomo says are “offering consumers false hope, charging tremendous fees and leaving them in a worse financial situation.” (more…)
What is Debt Forgiveness?
When examining debt relief options, clearly forgiveness of debt can be an appealing idea. Imagine getting all or a portion of your debt forgiven rather than having to deal with debt collectors and legal action! If it sounds too good to be true, understand that there are many consequences of debt forgiveness that could leave you in worse shape. (more…)
Ask Ken Your Financial Questions
When you are looking for an answer to a very specific question, it may sometimes be difficult to find exactly what you are looking for. That is because your situation is unique, and most other situations that you read about are just not the same as yours. Now you can ask your questions directly. (more…)
Proposed Limits on Debt Settlement Companies Too Lenient
Debt settlement companies have thrived on rising defaults on all sorts of consumer debt, especially credit cards and unsecured personal loans. Their profits have been through the roof even though the vast majority of their clients never successfully settle their debts. Newly proposed legislative limits still allow sky-high fees and almost no accountability. (more…)
