I owe 60K in credit cards, etc. If I consolidate how much of that will I have to pay? Should I just BK? ?

Question

I'm a full time worker and going to school part time making around 30-35K.

Answer 1

Consolidating...is just having to owe one person...you still owe 60K.  

You will be on a fixed payment plan...nothing more.  On top of this you are paying the agency a few.  

If you have been late with your payments or have just completely stopped paying your debt for months now...you can call up and settle your debts...often paying about half of what you owe.  The other side to this is you pay taxes on the settled portion of the debt because the IRS considers this income...$30,000 to payoff.  about another $10,000 to uncle sam...and pretty much all your cards closed.  

Sounds like with only making $30,000 a year, you do not have $30,000 right now to settle.  Thats the BIG catch...you settle and you pay then and there...you don't get to make payments.  MUST HAVE MONEY TO SETTLE.

Another option is to file for bankruptcy but with stiffer laws now...you are still going to have to pay most of it.  The banks will cease what ever you have of value ie property to offset there loss to you.

Advice for the future...you make $30,000 a year why the h**l are you charging up $60,000 worth of STUFF any way??  Live within your means.  If you don't need it...don't buy it...learn what need is vs wanting.  BIG difference.  

OK off my soap box now.  

Answer 2

all of it. But if you can get a loan for the credit card balances that is a fixed rate you will be better off. Most people don't understand that a card with just $2000 balance @18% interest and making minimum payments monthly takes 33 years to get to 0

Answer 3

What do you mean by debt consolidation?

1.  A big loan to pay off all the credit cards:  bad idea to shift debt to a new loan.  Most folks tend to run the credit cards back up and then you have the big loan, plus the credit cards.  In your case, it is unlikely you will find a $60K unsecured loan to cover those credit cards.

2.  Settlement company:  they take monthly fees from you and let all your accounts go 90 days past due.  Then they offer lowball settlements under threat you will file bankruptcy.  Not only will this completely trash your credit, many credit cards refuse to play and will just sue.

3.  Credit counseling/debt management program:  Check here for one near your:  http://www.nfcc.org/.  These are legit, non-profit credit counseling services. They can look at your finances and advise you how to proceed.  They have debt management programs available if you qualify for nominal fees.  They negotiate lower interest rates to make it easier to pay off credit cards.

Answer 4

go to www.freeyourdebt.net