What is the best way to pay off large, 5 yr old credit debt?

Question

I spoke to the debt collector and they gave me 2 options at taking care of this debt. I can either settle for a lump sum, which I cannot afford, or make monthly payments of an amount that I cannot afford. I told them I could do lower monthly payments, but they did not accept that offer. What can I do? Any advice or personal experiences is greatly appreciated! I want to pay my debt but I don't know how to do that if they aren't working with me at this point. Thank You!

Answer 1

One of the better ways of clearing debts is to consolidate debts. If you own a home then the best finance you can get is by way of mortgage. This usually has a lower interest rate on borrowed funds. You refinance your existing mortgage and borrow sufficient to pay out all your other debts.

Then tear up the credit cards or don't use them again unless you intend immediately paying for what you buy using the card.

If you do not own a home, you could call their bluff. Write to them and stipulate the amount you are prepared to pay off the debt each week or month. Make sure that this amount is more than the interest and fees being charged on the account, otherwise you are in serious difficulty. Tell them that if this is not acceptable then they can see you in court. Any reasonable magistrate, will tend to be on your side if you have made an offer to repay the debt with an amount appropriate to your current level of income. If after making this offer to pay, it does go to court, and the magistrate is on your side, court costs may have to be paid by them.

Answer 2

pay the payments that they set.  you had your chance to pay the debt according to your terms.  now you need to do whatever you can to pay it by their standards.  Creditors aren't the "work with you" type of people.

Answer 3

negotiate with them. Try to talk to them on amount you are able to pay. or you can try online debt consolidation. it will also help you in fixing your loans. Some of the features are as follows

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 4

Consolidation is the best and efficient way that can solve your problem. Its better that you consolidate you loan and transfer it to some lower interest rates, otherwise you will be at loss at the end of five year. My younger bro was also in the same problems but he had done this and now he is at least not paying off higher interest rates and their installments is also less. Well this is only an advice, choice is yours after all....And yeah if you wish to go for this just go to : http://www.debtreduction123.net