Jane wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

My husband & I have been married 6 years and have two children. One of us has been in school the entire time until he graduated a few months ago. He has a well-paying job now and I’m self-employed. We have a decent income for where we live, but now with the school loans needing to be payed back and having a lot of credit card debt to make it through those school years, we’re having a very hard time making all of our payments. We have a federal school loan payment, a private loan payment, and credit card payments.

Is there any safe way to combine these payments (federal school loans, private school loans, and credit cards) so we’re not making so many large payments each month?

Jane”

Dear Jane,

Oh would if it could be true. No.

On the federal loans, check out the IBR repayment plan. IBR stands for Income Based Repayment and that might give you some room.

For the credit card debt you can check out a debt management program. While interest rates may be lowered, your monthly payment will remain the same.

For private student loans, yep, you’re screwed on those.

Depending on how much you owe, you could always check out something like LendingClub.com and see if a group of small investors would be willing to fund a loan to consolidate your debt.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I’d Like to Consolidate My Federal Student Loan, Private Student Loan and Credit Card Debt Into One Debt Consolidation Loan. – Jane

Other Related Articles to Read

• Diana Is Struggling to Make Credit Card Payments And Afraid
• Bad Credit Debt Consolidation – Brutally Honest Advice
• Robert Wrote “I Do Not Know Where To Start Other Than I Am in Debt”
• Teresa Writes In And Asks “What Should I Do Next?”
• How You Can Get Out of Debt Fast Without Filing Bankruptcy

A Final Consent Judgment has been entered against the defendants sued by the Office of the Attorney General in New Jersey and its Division of Consumer Affairs for allegedly offering credit repair and credit counseling services that consumers paid for but did not receive.

Defendants United Credit Adjusters, Bankruptcy Masters Corp., United Counseling Association, Inc., and Credit Bureau Controls Corp. were ordered to pay $500,000 in civil penalties and $86,918 in reimbursement to the state, under the Final Consent Judgment issued on July 28 by Superior Court Judge Thomas W. Cavanagh, Jr.

Defendants Ezra Rishty and Ahron E. Henoch, both of whom were officers of the defendant companies, are personally responsible for paying $15,022 in restitution to 17 consumers. Both men, along with their firms, are permanently banned from doing credit counseling, credit repair, debt adjuster and bankruptcy work in New Jersey, under the Final Consent Judgment.

“This settlement sends a clear message to those who think they can profit from the misfortune of others during these difficult economic times – you are wrong. We will find you, hold you accountable and help the consumers that you have harmed,” Attorney General Anne Milgram said.

The state alleged in its lawsuit that the defendants required payment in advance during initial consultations and then, after receiving payment, failed to provide consumers with credit counseling, credit repair and/or bankruptcy services. Contrary to defendants’ representations and advertisements, consumers’ credit scores were not raised nor was negative information eliminated from credit reports. There was no admission of liability or wrongdoing by the defendants in settling this matter.

“Consumers in financial trouble are vulnerable to frauds as they seek help and they need to be cautious before paying money to hire anyone who offers assistance,” said David Szuchman, Consumer Affairs Director. “If the result promised sounds to go to be true, it probably is and the consumer may end up in a worse situation.”

The companies had maintained offices in Lakewood, Howell and North Manasquan.

Steve
@GetOutOfDebtGuy

Source: Credit Repair and Credit Counseling Firms Banned From New Jersey

Other Related Articles to Read

• New Jersey Goes After Loan Modification and Debt Settlement Companies. Suits Filed.
• Judgments Tossed Out Against Debtors in New York. Law Firms and Debt Collectors Sued.
• California Sues Individuals, Lawyers and Companies That Offered Loan Modification Services
• Missouri Attorney General Testifies Before U.S. Senate About Debt Settlement and Mortgage Rescue Scams
• Debt Settlement Attorney Keith Nelms with Allegro Law Gets Sued in Alabama

OK, so you know you need help with your debts, you have been struggling with them for years and now the time has come, you are going to do something to resolve this situation.

You have researched all the options and know what it is will work best for you; so whom do you choose to assist you?

Source: Whom To Choose

Paul wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

3 yrs. ago, I bought the house that I had rented for 14 yrs. It was a real fixer-uper. I borrowed aprox. 20k extra with my original motgage and also ran up another 10k on credit cards to remodel the inlaw aprt. downstairs. I then refinanced, paid off the credit cards, and took out aprox. 30k extra to remodel the upstairs while I lived in the inlaw apt. downstairs. I ran up aprox. 35k in c.c. debt and although I was able to move upstairs, it is not finished.

Although I am renting out the inlaw apt. I still had trouble paying the c.c.bills. Although I am current with the mortgage, I’m living in an unfinished home(needs aprox.20k to finish) and I haven’t paid the c.c. bills in aprox.9 mos. and now my credit is bad and I’m not sure what to do. I don’t think I can refinance with bad credit and an unfinished home, and I’m being hounded by the collection companies.

Paul”

Dear Paul,

If you want to stop the hounding, your choice is bankruptcy. If you want to keep the home, then you are probably looking at a Chapter 13 bankruptcy.

Outside of that you have no other legal rights to stop the collectors except to send a cease and desist letter but that is just begging to be sued and does not solve the underlying problem.

I doubt you can lower your expenses any further or increase your income so that’s it. One more option, hand back the house, discharge all your debt in a Chapter 7 bankruptcy and start over.

I think you should contact a couple of local bankruptcy lawyers, find one you like, and setup a free bankruptcy consultation appointment to go in and talk about your situation and how can bankruptcy can assist you.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I Live in an Unfinished Home and Chased by Creditors. – Paul

Other Related Articles to Read

• No Related Post

Source: Cars

Cassandra wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

My boyfriend has signed up with a BBB Accredited debt management company and only receives a statement showing how much they have deducted from his account at the end of the month. His creditors are upset that he is not communicating with them and the reason for that is because the debt management service (CareOne) told him not too.

Can he legally demand an itemized statement from CareOne to prove how much is being sent to each creditor and when and how (electronically vs. check number)?

Cassandra”

Dear Cassandra,

CareOne provides account servicing for underlying credit counseling groups. My understanding is that they are more of a marketing group to underlying service providers than a debt management company themselves. But a review of their site only lists two service providers.

Corporate Information
CareOne Credit Counseling c/o 3C Incorporated
8930 Stanford Boulevard
Columbia, MD 21045
Phone: 410-910-1735
Toll-free: 1-800-284-1596

Here is the corporate description of Care One Services.

CareOne Services Inc., formerly The Freedom Point, was formed in 2002 to provide consumers with multiple solutions to complex money problems. CareOne Services Inc. boasts a unique Financial Fitness Center that examines each consumer’s individual financial situation and develops a personalized solution to help the consumer get out of debt and strengthen his or her financial footing. CareOne Services Inc. identifies, develops and markets products for highly leveraged consumers. Source

Here is the corporate description of 3C Incorporated.

3C Incorporated is a company that owns the CareOne Credit Counseling service mark. Credit counseling agencies and financial fitness agencies that bear the CareOne Credit Counseling service mark are industry leaders committed to providing consumers with superior service. Organizations offering the CareOne brand of customer service and financial education adhere to strict standards designed to ensure that every consumer is treated with compassion and understanding. These agencies provide patient, personalized financial counseling and education to every client who seeks assistance, including an individualized assessment of the client’s financial situation in order to identify and help implement the best alternative to address his or her needs. Source

So I’m not all that certain who might be servicing his account.

What I do know for certain is that he deserves to have real time and online access to check on the status of his account and payments made. The CareOne site has a page that might provide this information. Click here to register.

Transparency and communication are keys to a smooth relationship with your debt management or credit counseling group. If your boyfriend is not getting monthly statements still from his creditor he might want to use the automated phone systems with the creditors to check on payments.

His creditors are still his creditors. If the creditors are unhappy about something with his plan or a lack of communication, this may not work out well.

My suggestion, have him pick up the phone, call all his creditors, ask them if everything looks setup correctly on his account. If he hears that there are problems, he should immediately contact his CareOne coach or whatever and ask for help, answers and clarification.

A good counseling agency wants to help people resolve problems, not prolong them.

When I ran a debt management company I made certain that clients could login, check the status of each payment, see date and time it had been sent electronically or track the package if a check was sent. What you are asking for is easily possible to provide.

Let me know how this goes and give me some feedback on the CareOne response.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I Have Questions About the CareOne Credit Counseling Program. – Cassandra

Other Related Articles to Read

• No Related Post

Charlotte wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

I want to know how to find a credible loan modification company. Is there a list of fraudulent companies as to the consumer will know who not to do business with? I am having the hardest time trying to find anything on the internet which will inform me of fraudulent companies.

I have a sell date on my home for the end of September and I am running out of time. Please help Thank you

Charlotte”

Dear Charlotte,

Your best bet is to contact a free HUD mortgage counselor to discuss your options. I’m afraid most of the loan modification companies charging fees are make sales but not making a difference. Read the following stories on loan modification companies.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I Need The Name of a Credible Loan Modification Company. – Charlotte

Other Related Articles to Read

• I’m Holding On to Our House By Draining the College Fund. – Dave
• Foreclosure Rescue and Mortgage Modification Help Just Bad Actors in New Clothes
• Just Because Your Bank Modified Your Mortgage Doesn’t Mean It Will Stick
• I Received a Mailer From Payment Reduction Service and Core Pac Solutions to Modify My Mortgage. – Charles
• We Have Three Mortgages Against Our House, Started Our Own Business, and Finding it Hard to Pay the Bills. – Arthur

Patricia wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

For 10 years I was self employeed making very good money on the inernet. Over the past 6 months the sites I got work from began to close, or remain open with little to no clients. My income dropped 80% (seriously) I am 3 months behind in my mortgage and currently working with them. I owe the IRS 2 years of taxes and my accountant is working with them. I am barely surviviing. American Express called me today and got me so upset I am sitting here shaking. I am having a major anxiety attack and am already on Zanex for anxiety. If had money I would have paid my mortgage and IRS. Im not claiming bankrupcy as my accountant told me to wiat a few years so I can bankrupt my IRS money owed. (You have to wait 3 years before you can bankrupt an account with them. Of everyone I am working with American Express was the most unhelpful and the most scary. I owe them about $50,000 between two cards, a business card and a pesonal card. I explained my situation to them and they think I can pull money out of the air. I have always paid them on time, I would pay them if I could, I seriously would.

What will AMEX eventually do? Can they take money from any of my checking accounts they have on file, when I made payments to them in the past over the phone? Do they usualy take you to court? Will they honour a cease comm letter to stop calling me?

Patricia”

Dear Patricia,

I am not a bankruptcy attorney and I can’t give you legal advice. What I do know about IRS and bankruptcy I’m not sold on the accountants advice. If the IRS files a lien on your property it survives any discharge in Chapter 7 bankruptcy and if you file a Chapter 13 bankruptcy the amount of the claim can be reduced. So there are some advantages to filing for bankruptcy to deal with the total situation.

But rather than trust the accountant, or me, contact a local bankruptcy attorney and go in and talk to them about your situation. Generally bankruptcy lawyers off a free bankruptcy consultation to answer questions. And what you need here are facts, not assumptions.

American Express is doing their best to scare money out of you. A cease and desist letter does not apply to the original creditor, only third party collectors.

So in order to address all of your situations and get you on a payment solution that you can make, a Chapter 13 bankruptcy sounds like the best approach. If the lender comes up with a payment you can make and you can afford that, you can keep your house in bankruptcy. The AMEX and IRS debts will receive what you can afford to pay them at the end of your bankruptcy, any remaining debt due them will be wiped off.

The final benefit of the bankruptcy protection is that once you are represented by a bankruptcy attorney then American Express can no longer contact you.

As an aside, I believe that once you take action to address your situation that you will find that your income will start to go back up. Nothing kills creativity and enthusiasm than overwhelming and scary debt.

Big hug.

Steve
@GetOutOfDebtGuy

Source: American Express is the Least Helpful and Scariest Creditor I Have. – Patricia

Other Related Articles to Read

• I’m in Debt Because of Too Much Fish. – Michael
• My Ex-Husband Was an Authorized User on My Credit Cards and Ran Them Up. I Went Bankrupt. – Lauren
• Diana Is Struggling to Make Credit Card Payments And Afraid
• My Mother Was Told by a Lawyer to Stop Paying Her Bills. – Keith
• I Need to Lower My Mortgage Payment. – Josten

Jaimie wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

I have been a Chase customer for 3 or 4 years now. I started with the 0% introduction APR, and then went to 12%. My limit is $5800, and I put my tuition on the card so I have a balance of $5,000. I have ALWAYS paid on time, and most of the time pay up to $1,000 a month. However I lost my job in April, and now have a new one but am still catching up and can’t afford to pay more than the minimum which used to be $150. I had the protection program, and called in April asking to activate it and called the other number and was supposed to have papers mailed to me to fill out. They said it would take 90 days to process.

Well it’s been 3 months and still I have no papers, and they increased my APR to 29.99%!!!!! Now I have to pay $600 a month just so that I don’t go over the limit. Needless to say I cannot afford that, and am not going to waste the $150 I can pay just for it to go to nothing and continue getting fees and other charges. They won’t work with me at all, and called to say that my account was cancelled and that they were not going to help me even though I have the protection program.

Jaimie”

Dear Jaimie,

Well let’s look at what could have been different. If you did not have a savings account or emergency fund to fall back on then sending Chase $1,000 a month but leaving yourself dry is not the best approach. If you had made the minimum payment, built up your savings and then when you were out of work you could have covered the payment.

If you call a creditor in the future for a similar situation and the papers don’t arrive in a few days, call them back and nag them till they arrive. Don’t just wait for them. Time is not your friend in times like this.

I doubt that Chase is going to go back and process your claim. While you were out of work, you are not now. Additionally, many of those credit protection plans have holding periods where you need to be out of work for X number of days before they begin coverage.

It sounds like you might also have been nabbed by the recent Chase policy of raising interest rates and minimum payments to 5% of the outstanding balance.

The best thing to try at this point is to call Chase customer service and ask if they have a special payment program you can get on to help you get caught up. But since your account was cancelled, they just don’t give a damn anymore.

I think your only shot, to avoid bankruptcy is going to be to enter a debt management program to see if your interest rate can be reduced. Click on the link and contact a debt management company to you can see if you can afford the payment the debt management group states.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I Had a Chase Credit Protection Plan But They Didn’t Cover Me. – Jaimie

Other Related Articles to Read

• Chase Bank Lowers My Credit Limit As I Make Payments Each Month. – Josh
• Holy Crap. Chase Minimum Credit Card Payment Goes to 5% of Balance for Mary.
• I Fired My Debt Management Company And Now I’m Going to Settle My Own Debt. Should I Hire a Lawyer? – Jannelle
• How Can I Get a Credit Card Company to Accept a Repayment Plan I Can Afford? – Scott
• I’m a Hard Working Blue Collar Worker And I Can’t Pay My Bills. – Steven

Cynthia wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.

“Dear Steve,

I asked my boyfriend to co-sign on a home equity line of credit for my sister’s boyfriend at the time. He bought a condo and he needed extra money to pay off his car because he couldn’t make ends meet.

We did it as a favor because his credit wasn’t enough to get the heloc. My boyfriend agreed to do it and he was added to the title of the house in order to be able to apply. The heloc was approved and for a couple of years the actual owner of the house was making the payments on time, but now we just found out that he hasn’t paid the mortgage and will let it go to foreclosure.

He said that once the house goes on foreclosure the bank will take the house and the heloc will be closed and won’t affect my boyfriend’s credit in anyway. I know that isn’t true, since the heloc is under my boyfriend’s name only and i know that is a lien against the house and if the house is foreclosed his credit will be ruined because of the unpaid heloc. The condo is in california, please let me know if there is anything that can be done to prevent his credit from being ruined, in case the heloc can’t be paid in full.

Cynthia”

Dear Cynthia,

Yep, this isn’t going to end well. The house will be foreclosed on and the lender will come after your boyfriend for the full home equity line of credit due.

He must have really loved you to do such a horrible thing by cosigning.

When someone cosigns it means they are accepting full responsibility for the loan. The reason the lender gets a cosigner is because the applicant has crappy credit and is at a high risk of default. The lender realizes that the bad credit applicant has a greater chance of defaulting so that’s why they get some sucker to put their credit on the line. It reduces the risk of the lender, they get to sell another loan product and some unsuspecting person gets to foot the bill for the whole mess.

I hope I didn’t sugar coat that too much for you.

Big hug.

Steve
@GetOutOfDebtGuy

Source: I Asked My Boyfriend to Cosign for My Sister’s Boyfriend, And He Did. – Cynthia

Other Related Articles to Read

• My Husband Bought a Truck Two Years Ago. He Can’t Pay For It Anymore. his Father Cosigned. – Brandy
• My Husband Cosigned for His Mothers Jeep. Guess What? She Defaulted. – Erin
• I’m Willing to Co-Sign a Loan to Help Out My Guy. – Lou
• I Cosigned for a Car Loan and that Person Went to Jail. Now I Have to Pay it. – Noname
• My Sister-In-Law is a Paranoid Schizophrenic With Student Loans We Cosigned For. – Sara