How to get out of debt?

Question

I heard from a friend of mine, that you could talk to some company and they put all your bills into one ( i guess they pay them off ) and you just pay one low monthly payment? Has anybody have an idea how and who I need to talk to?

Answer 1

Try using: http://DebtAnswersNow.com

I used their service a couple months back and they consolidated all my debt and lowered my total debt 40%.

Answer 2

What you're talking about is a debt consolidation loan. Before this sub-prime mess they were very popular. The sub-prime mess has led many of the people who needed them most no longer eligible for such loans. Problem with such loans for many was that with their credit cards free and clear again people felt free to run them up again. And now they have two debts, the consolidation loan and the new credit card debt.

Best solution to get out of debt is to cut your expenses, see what you can do to increase your income (part time job, better job, etc.) and use the difference to pay down your debt. Good luck.  

Answer 3

Freeze all but one of your credit cards in a block of ice, so you really have to think and plan if you want to purchase something.

Answer 4

Try reading Dave Ramsey's book and then start snowballing on the debt.

Answer 5

1.Pay off all those debts at once and if stil having trouble sell your computer, phone, furniture and the like at resonable prices online like free at http://www.sellit-right.com or http://www.classifieds.com

2.Buy only what you need! Buy from cheaper shops.

3.Use more cash than credit cards.

Answer 6

You need to talk to a Credit Consumer Couseling Service (CCCS). I recommend a Non for profit one if you want to do that. Although they do require a monthly "donation" for their services and sometimes you can save more money paying the accounts on your own.

What you'll need to do is compare and contrast the amount you'll save each month on late fees and interest, to the amount of the monthly "donation."

I've worked for 3 different banks doing debt collections and a word of advice...most of these places are scams. They won't send the proposals out (which will increase your balances and s***w your credit) and some will even file bankruptcy and keep your first payment and you'll be out all that money and right back where you started (maybe even further in debt than when you started).

I'd recommend just trying to work out arrangements with the companies themselves first.

PS This affects your credit negatively. Each account will show closed by the granter.

Answer 7

Please be aware that anything short of paying your debts in full on time according to the terms of your contracts (which keep changing if you read those notes that most people just throw away) is going to mess with your credit scores. The most practical solutions to getting out of debt faster (and I did not say FAST) is by asking your credit card companies, cable service, phone service, etc. into helping you lower your rates and/or suggest promotions. Ask them to waive annual fees if appropriate or to work with you. Most will. It's alot of work but it can help you get more for your money by using your reputation as a valuable customer to help you. Steer clear of debt settlement companies. They sound great in theory to "help" you lower payments but they make you out to be a deadbeat and your credit report and score will show that. They offer creditors something compared to nothing (bankruptcy) and its those places that end up making money off you. I'd suggest a legitimate debt management company like Consumer Credit Counseling (link below to their governing agency) to help you negotiate debt management terms with creditors legally and ethically. You WILL cut up every credit card you have... and you should. If you're that far in debt you don't need credit...you need a plan and to have your life back. It's not easy to live on less but you can. Others have. Check out books by Dave Ramsey, available at your library.

Answer 8

its a scam.

Think no business exists, but to make money!  Where do you think the money for all those commercials, their buildings, employees and utlities? RIPPING PEOPLE OFF.  

Even the non-profit corporations.  Just because you are a non-profit, doesn't mean you exist to NOT MAKE MONEY.

Many health insurance companies and medical providers are "non-profit".  A "non-profit" can simply divide all its revenue between its employees.  

Answer 9

It isn't that simple. There are places like debt consolidation companies that will sit down with you and look at your credit report and all your debt. Then they will contact the companies that you owe money to and try and work out some type of agreement. Then they will talk to you about a monthly payment. I don't for sure know how this will effect your credit but that is something you will definitely want to ask them.

Look in the phone book or on the internet for these types of places and in the future try to be more careful with spending and purchases. I too am learning that I didn't really need all the stuff I have and it just took money I might have needed for something more important. Good Luck!

Answer 10

Online debt consolidation can be a better answer for your question.

If the borrower wants to take a loan the credit history of borrower matters a lot for lender. The credit history can be spoiled by any debt or neglected payments which borrower has been casual about and directly have an effect on the interest rate which is going to be charged by lender. You can free yourself from these debts without difficulty through online debt consolidation.



Sometimes, borrower creates debts intentionally or unintentionally. If borrower pays the debts regularly then he/she may avoid the outstanding debts which directly have an impact on credit score. There are many ways where the credit scores are known likewise on FICO scale if score are lowered than 600 it means a bad credit score for the borrower. Online debt consolidation can help the borrower in getting free from all there debts which may cause obstruction in the future monetary assurance.



In the course of consolidation, all multiple debts that the borrower be indebted the lenders are clubbed jointly as one and then a resolution is looked after. The finest way to deal with debts is to take up a fresh debt consolidation loan which is also available online. These loans are available at very low rate of interest, it helps the borrower to pay off several debts at once and help to repay in single monthly installments.  



Moreover, borrower can take a help of financial consultant or financial agency is clearing old debts. Reduces the expenditures, additional savings some tips have been provided to borrowers so that they can avoid debts in the future too. Online study helps the borrowers in getting the finest services sitting in home or an office.



Online debt consolidation helps borrowers to find easy solutions to there financial problems. Online debt consolidation loans help borrower to cope up the future problems.

Answer 11

Yes thats true. They are know as debt consolidation or credit counseling or debt counseling companies. These companies provide you with an debt counselor who talks with your creditor and negotiate with them to reduce either the interest rate or some amount of debt and then provide you with an affordable debt repayment plan by combining all your bills into one single payment each month.

You can refer to this source of a debt consolidation company named http://ezconsolidation.com for more details on debt consolidation.

Answer 12

Google "Consumer Credit Counseling Service."  I went through the one in Ventura County, California many years ago.  They do what you said, sort of -- they work with your creditors and are usually able to get them to lower the monthly payments (sometimes they knock off the interest as well) and the end result is one lower payment that you make directly to them.  They then pay your bills, and once one bill is paid in full they take the extra money and put it toward another bill.  They keep doing that until all your bills are paid off.

The catches are:  (1) You have to pay CCCS every month in the form of a money order -- personal checks are not accepted because they won't take the risk that a check will bounce, (2) Your payment doesn't go down as the bills get paid off, (3) You can't open any new lines of credit while they're helping you, and (4) If you miss a payment your creditors can demand payment in full immediately.

To give you an idea:  I was almost $10,000.00 in debt with credit cards and furniture loans when they started helping me.  They knocked my bills down from about $500.00 a month to $225.00 a month (at the time they charged $10.00 a month for their services) and in about three years I was debt-free.