WASHINGTON – Democratic leaders secured the last votes needed to move ahead on historic health care reform legislation, clearing the way for a Saturday night showdown on President Barack Obama’s top domestic policy initiative. In long-awaited …

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“Dear Steve,

I was unemployed for 7 months in 2007 and moved to Texas for employment, The company shut down the project in Novemeber of 2007 then fired 35 people in January of 08. During this time My wife lived in New Jersey and never came to Houston and filed for divorce. I never thought that New Jersey would award her alimony in the amount of 3k a month when I was unemployed. I soon gained employment and bring home 3K a month after alimony and taxes. The problem is that while with my first company in Texas I had to buy a new car,had expenses that were never paid by the first company for mandatory travel and had major expenses left over from my 7 months of unemployment.

Now comes the even worst part. I met a very special woman after the divorce with 4 children. She understands my dilema however we are in risk of losing our home (rented) due to the inability to pay rent. My bills from being unemployed are in the range of 90K and haven’t been able to come close to catching up.

I have had thought the same as yours, suicidal, bankruptcy. I need some type of help, I’ve even looked into grants to help my fiance out for housing and starting up a business but it is very frustrating going through the government web site.

Are there ways to get out of debt for free? I mean all debt. Can the government help?

What ever you can do to help we would be forever grateful.

Steven”

I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.

Big hug.

Steve

Dear Steve,

Though grants for start up do occur, I have found they are most generally for a very specific purpose and have very selective criteria to receive them. I am not saying don’t continue to research grants, but I am saying, do not count on finding one. But even a grant has a price tag of finding it and then following all the needed steps to get it. Similarly you should make contact with local churches, utility companies, etc to seek temporary assistance.

You asked if the government can help and yes they can but not usually in the form of a grant. I find it interesting that you put suicide and bankruptcy so close together as I would say suicide is about the most negative thing I could think of. Bankruptcy on the other hand could be a very positive thing if you look at it as a new beginning… a new fresh start. But I do understand your overwhelming feeling of issues being out of control. And you would not be the first to feel this way. At the same time combating such feeling with positive actions such as attempts to rectify the situation are a very power positive force allowing you to work towards regaining control. One such action is looking into bankruptcy.

Bankruptcy will not cure alimony, child support, fines, etc but it could very well take care of that 90K and may even allow you to keep the car. My recommendation is to run (don’t walk) to a bankruptcy attorney in your locale. The worse that will happen is you will find out bankruptcy is not an option for you… but I think it may be.

But to answer your questions, “is there a way to get out of debt free?” The answer is simply no… unless you discover a buried treasure in your yard. Oooohps! Forgot you needed a shovel to dig it up.

Sincerely,

Mike

If you have a credit or debt question you’d like to ask just use the online form. We are happy to help you totally for free.

Source

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Toronto, November 20, 2009 – Hawk Uranium Inc. (TSX-V:HUI, FRANKFURT:HPM) (“Hawk”) announces that following TSX Venture Exchange (“Exchange”) approval of a shares-for-debt settlement with service providers (see Hawk’s press release of …

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Every household with outstanding consumer debt sees an immediate reduction in their monthly debt-service which is the same as sending … 2) It would help ordinary people, which seems to be the current definition of “socialism.” (Many people, even …

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“Dear Steve,

I have about $45K worth of debt. I have four credit cards with balances of $500 each. I have IRS debt of $1600 and $3000 balance on Best buy card. And a $38K auto loan. Truthfully, its the auto loan that is killing me. I pay 13% interest. SO now my loan is upside down. its higher then worth of car. My monthly payment is $953.

Don’t know exactly what I can do, I’d like to either refinance car or consolidate all debt and pay one payment rahter than 6 difference plus normal monthly expenses.

Can I either refinance my car or consolidate all debt.

Rose”

I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.

Big hug.

Steve

Rose, I am certain you are painfully aware of the woes of today’s economy. One of the end results of this plight is exceptionally tight credit. Of course attempting to refinance the car is a great option and I think you should try but tight credit means limited loans being issued and rarely without a good credit score.

You also did not mention your income. That and a decent credit score will be key. A ball park figure to work with (and what a lending institution will be looking at) is your monthly debt should not exceed 36%. That percent should include not only all monthly debt obligations but also your rent/mortgage and your tax obligation.

The first thing I would try to do is contact your auto finance company and see if they can do anything about lowering the interest rate. Explain the situation to them. Don’t “cry” to them about your plight but suggest to them that without there assistance you may have to consider bankruptcy. If they are unwilling, then consider refinancing possibly through a credit union. Your credit score and income will be paramount.

It is very possible you may find your only recourse is allowing the car to be repossessed. This will free you of the payment but leave you a balance owing on the difference between what you owe and the amount the car was sold for on the auction block. At that point you may want to consider bankruptcy. On the good side of things, you will be free of the car and you can get something far more affordable.

You had referenced an interest in consolidation, which is another very good option assuming you have the credit score and the total monthly payback lowers your total payment of all debt included. At a minimum look into a consolidation loan through a credit union or other low interest loan group such as LendingClub.com. At the same time please realize it is rare that you can borrow your way of debt.

The key to your questions and the guide to your answer revolves around your income and your credit score.

Sincerely,

Mike

If you have a credit or debt question you’d like to ask just use the online form. We are happy to help you totally for free.

Source

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“Dear Steve,

Well i really dont know where to start.recently married around 6 months ago..it was a forced marriage..now i have put myself in such heavy debt that i am left with nothing at all each month and still bills to pay..i have 2 credit cards over limit..totaling up to $ 11,444

And a car loan $46 000..im currently earnin only $2400 a month..- am stuck and have no idea what to do..still staying with parents cos im not settled yet..,i live in UAE…help me please…

How can i progress in life with all these debts..? And im married…need to find a solution to

Get my life in track..should i sell the car,where do i start.heeeelp!!!

What should i do to get myself back in track

Abdulrazak”

Dear Abdulrazak,

Wow. The forced marriage aside, the path out of debt is both basic, and hard.

I would suspect in reading between the lines of your message that the relationship isn’t the most desired situation. I am sure it brings you some emotional stress and I’m worried about that.

It is not unusual for stress and worry to result in growing debt. People around the world unconsciously seek soothing comfort through shopping and the distraction of spending money. I’m not saying that’s what what you’ve done, but you need to be aware and watch out for such new debt.

The way out for you, as long as you can meet your monthly minimum obligations is going to be to not incur any new debt and slowly dig yourself out. The good news is you are working and you do have income coming in.

The debt snowball method to reduce debt works in any currency, including in the UAE. By tackling the smallest debt first and freeing up additional money you can then apply it towards the next largest debt, accelerating your payoff.

If you could sell the car and pay off the car loan from the sale, that is certainly an option to strongly consider. If you need a car, find a less expensive one. After all, it is just transportation and does not need to be more than reliable.

I’m curious, who knows about your situation, your parents, your husband? What advice have they offered?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I’m in a Forced Marriage in the United Arab Emirates and Deep in Debt. – Abdulrazak

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On the negative side before I know it the day is gone and I have not stepped foot outside. Or from time to time I look up and realize it is 1 PM and I haven’t taken my shower yet. If you are a work at home person you know exactly what I’m talking about.

To help stretch my legs a bit we try to go and do something special each month. This month we are going on a 2,000 motorcycle trip on the Honda Gold Wing. I can’t wait to hit the road and just enjoy what the country has to offer. For me riding a motorcycle is my church. I meet so many great people, I witness loads of human kindness and I get to see more of the world and appreciate its beauty and miracles.

The route this time will take us down to warmer weather and we’ll cruise all of Florida before heading to the Varsity in Atlanta for a greasy hotdog. Since I’m thinking of food I’m also looking forward to dinner at Paula Dean’s restaurant in Savannah, GA. I bet there is going to be a lot of butter involved in that meal. I can only hope.

But getting away also has a painfully stressful irritant intermixed in it for me. Being away means I get backed up answering questions and boy do I hate to let you down.

Even though I’ll have a laptop with me and my trusty MiFi card for sweet internet access, I tend not to have the mental energy after eight hours on the motorcycle. I find that my ability to efficiently answer questions is directly proportional how much my ass hurts.

This trip I also hope to do some more debt interviews so I’ll take my recording gear with me on the bike and get some more people to speak to you about what debt is like for them.

I’ve also enlisted the help of a couple of people in the debt field to help me answer questions during my down time. Soon you will get a chance to meet Mike and Susan on the site. They’ve done a great job in answering questions for me to approve.

Getting some help to keep the answers coming is not something I’ve done before. But in the interest of striking a more comfortable work-life balance it seemed to make sense. After my last trip where we toured the Northeast U.S. all I was doing was either driving or working. I’m not doing that again. I should know better that that, after all relaxing means not working every time we stop. Silly me.

Be sure to follow me on Twitter because I’m going to be sending pics from the road and you’ll get to see them that way. I can’t wait to share with you what I find.

Steve
@GetOutOfDebtGuy

Source: Soon Off On Another Big Motorcycle Adventure

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“Dear Steve,

I owe more than $16,000 to credit card companies — Capital One, BoA, Chase — got behind and further behind — and am now trying to figure out what to do.

I want to pay what I owe but some of this is late fees, higher interest, etc. My biggest problem is at this point I simply can’t afford to pay each of them what they want in minimum payments.I have not contacted any of the companies at this point because I don’t know what to say. I did work out a payment plan with Chase at one point, but it istoo high.

I talked with a Coastal Credit Solutions advisor who recommended debt settlement,. I am considering whether to use their service …. but everything I read on the internet makes me leery of any of these groups. The appeal is they say they can consolidate it into one monthly payment.

Is there a way to negotiate a debt settlement and a payment schedule myself through letters to the card companies (I can’t afford a lump sum payment at this point). I would prefer to deal with this in writing if possible since I feel I’m less likely to get talked into something I really can’t afford.

Jeff”

Dear Jeff,

Thank you for contacting me.

I’d never visited the Coastal Credit Solutions site before so I took a look around. It certainly is an attractive site and I’m happy they publish their business address.

I’m concerned the advisor recommended debt settlement for you. Since you can’t afford the minimum payments now, and you probably don’t have $8,000 at hand to begin to settle these debts now, starting a debt settlement plan is going to toss you into turmoil. It will land you in collections and hurt your credit report and credit score. You may even be sued during the process and it could result in a big tax bill for you from the forgiven debt.

But don’t take my word for that, even Coastal Credit Solutions says so on their site.

While the little video spokesmodel on the site says most debt solutions are a low or no cost, I find it very hard to believe there would be no cost for debt settlement services. So how much did they tell you they would cost?

I was very surprised to see that they apparently are not the actual service provider but a referral agency. Their graphic on their process page actually says “Our Credit Advisor will help you prepare and package all the paperwork required by the financial service provider.”

Since they may not be the actual company that would provide you with debt settlement services, companies in this position have a vested interest selling you into the program and will most likely get a commission from making that sale.

I did have to chuckle when I saw their client login went to another related company I wrote about just this morning. It must be my GNUSA day. See my post “Have You Heard of the National Debt Crisis Center? – Eric“.

So, if you are going to review all of your options then you need to find a local bankruptcy attorney and make an appointment for a free consultation. A Chapter 13 bankruptcy would allow you to pay what you can afford, would prevent you from being sued, would not result in any tax liability, and would instantly stop all collections efforts.

Seriously, Jeff, even though you might be afraid of bankruptcy or talked out of considering it, it certainly seems like the pros address your needs and it is worth serious consideration.

If you have any documents from Coastal like a client agreement I’d love to see it. You can upload it here.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: The Coastal Credit Solutions Advisor Recommended Debt Settlement. – Jeff

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“Dear Steve,

Miltary active duty. Married with a child. Bought my home in 2006 at the hieght of the real estate “boom” and now stuck with a property that is worth 80,000 dollars less than what I owe on it.

I am currently 80,000 dollars upside down on my mortgage. I own the home in Arizona but currently stationed in Hawaii due to military orders. I currently rent the home out and I can afford the mortgage just wondering if there was anything I can do to resolve this situation?

Kenneth”

Dear Kenneth,

Interesting question. Generally relief is available for people on active duty to reduce their interest rates or prevent their home from foreclosure. See below.

But if I read your question correctly you are looking for help in reducing the amount you owe because you are on active duty. Since you are current on your mortgage a loan modification is not an option. This also looks like it is your primary mortgage so a bankruptcy loan cram down isn’t an option either.

I’m afraid I’m stuck then.

Questions & Answers for Reservists, Guardsmen and Other Military Personnel

Regarding mortgage payment relief and protection from foreclosure provided by the Servicemembers Civil Relief Act (formerly known as The Soldiers’ and Sailors’ Civil Relief Act of 1940).

Who Is Eligible?

The provisions of the Act apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard; commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration who are engaged in active service; reservists ordered to report for military service; persons ordered to report for induction under the Military Selective Service Act; and guardsmen called to active service for more than 30 consecutive days. In limited situations, dependents of servicemembers are also entitled to protections.

Am I Entitled To Debt Payment Relief?

The Act limits the interest that may be charged on mortgages incurred by a service member (including debts incurred jointly with a spouse) before he or she entered into active military service. Mortgage lenders must, at your request, reduce the interest rate to no more than six percent per year during the period of active military service and recalculate your payments to reflect the lower rate. This provision applies to both conventional and government-insured mortgages.

Is The Interest Rate Limitation Automatic?

No. To request this temporary interest rate reduction, you must submit a written request to your mortgage lender and include a copy of your military orders. The request may be submitted as soon as the orders are issued but must be provided to a mortgage lender no later than 180 days after the date of your release from active duty military service.

Am I Eligible Even if I Can Afford To Pay My Mortgage At A Higher Interest Rate?

If a mortgage lender believes that military service has not affected your ability to repay your mortgage, they have the right to ask a court to grant relief from the interest rate reduction. This is not very common.

What If I Can’t Afford to Pay My Mortgage Even At the Lower Rate?

Your mortgage lender may allow you to stop paying the principal amount due on your loan during the period of active duty service. Lenders are not required to do this but they generally try to work with service members to keep them in their homes. You will still owe this amount but will not have to repay it until after your complete your active duty service.

Additionally, most lenders have other programs to assist borrowers who cannot make their mortgage payments. If you or your spouse find yourself in this position at any time before or after active duty service, contact your lender immediately and ask about loss mitigation options. Borrowers with FHA insured loans who are having difficulty making mortgage payments may also be eligible for special forbearance and other loss mitigation options. More information about help for homeowners who are unable to make payments on a mortgage is available on the HUD website at http://www.hud.gov/foreclosure/index.cfm.

Am I Protected against Foreclosure?

Mortgage lenders may not foreclose, or seize property for a failure to pay a mortgage debt, while a service member is on active duty or within 90 days after the period of military service unless they have the approval of a court. In a court proceeding, the lender would be required to show that the service member’s ability to repay the debt was not affected by his or her military service.

What Information Do I Need To Provide To My Lender?

When you or your representative contact your mortgage lender, you should provide the following information:

• Notice that you have been called to active duty;
• A copy of the orders from the military notifying you of your activation;
• Your FHA case number; and
• Evidence that the debt precedes your activation date.

HUD has reminded FHA lenders of their obligation to follow the Act. If notified that a borrower is on active military duty, the lender must advise the borrower or representative of the adjusted amount due, provide adjusted coupons or billings, and ensure that the adjusted payments are not returned as insufficient payments.

Will My Payments Change Later? Will I Need To Pay Back The Interest Rate “Subsidy” At A Later Date?

The change in interest rate is not a subsidy. Interest in excess of 6 percent per year that would otherwise have been charged is forgiven. However, the reduction in the interest rate and monthly payment amount only applies during the period of active duty. Once the period of active military service ends, the interest rate will revert back to the original interest rate, and the payment will be recalculated accordingly.

How Long Does The Benefit Last? Does The Period Begin And End With My Tour Of Duty?

Interest rate reductions are only for the period of active military service. Other benefits, such as postponement of monthly principal payments on the loan and restrictions on foreclosure may begin immediately upon assignment to active military service and end on the third month following the term of active duty assignment.

How Can I Learn More About Relief Available To Active Duty Military Personnel?

Read more information about the Servicemembers Civil Relief Act, sponsored by the Legal Assistance Policy Division, Office of The Judge Advocate General, U.S. Army.

Servicemembers who have questions about the SCRA or the protections that they may be entitled to may contact their unit judge advocate or installation legal assistance officer. Dependents of servicemembers can also contact or visit local military legal assistance offices where they reside. A military legal assistance office locator for each branch of the armed forces is available at http://legalassistance.law.af.mil/content/locator.php

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I’m Active Duty Military. Is There Any Relief I Can Get From My Mortgage? – Kenneth

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• I’m on Active Duty in San Diego But Deep in Debt. What Can We Do? – Andrew
• I’m Active Duty Army in Iraq and Need to Deal With My Debt Back Home. – Howard
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“Dear Steve,

HELP! I AM DROWNING IN DEBT!

I am divorced with a daughter that is a sophmore in college. I was getting $520.00/month child support until this past July. I have 5-credit cards with debt totaling approx $24,000.00. While getting child support, I was making the minimum payments and then turning around and using what little balance they had to make ends meet (grocries, gas, etc). The way I am going I will never pay off these debts.

Now that I am no longer receiveing child support, I do not have enough money to pay my credit card bills and provide the essentials for my daughter and myself. I had to may a choice and I chose not to pay the credit cards and use the little money left over after rent, utilities and car payment to buy food, gas, etc for the month.

I get paid once a month and I really have to stretch it. My daughter has been looking for a part-time job and I have too but we haven’t been able to find one. I have always paid all my bills on time. I am receiveing calls from the card companies for payment. They tell me that I have aways paid on time and have been a good customer. They want to work a plan with me but I don’t know how to go about negoiating with them.

They want to make automatic withdrawals from my checking account. I don’t want to commit to something I’m not sure that I can honor because then I would have no money for everyday living expenses, i.e. food, gas, etc. I don’t own a home and have used all my savings. I don’t have anyone to borrow money from and if I did I don’t know how I would repay them,

HELP! It appears to me that bankruptcy is my only option. If not what other options do I have? I appreicate any advice you have to offer

Barb”

Dear Barb,

Living on the financial edge is scary. Actually it is terrifying. You never know when the next financial emergency is going to land in your lap. And it will.

Without any savings or an emergency fund you are putting everyone else first. You send what little you can afford off but you leave yourself totally exposed and living month-to-month. That’s not smart and I need you to stop it right now.

The reality is that you probably just don’t have enough left after paying the basics to meet your commitments. And entering into a payment plan isn’t going to change that fact.

You were very wise not to give your creditors access to your checking account. They would take their payment out each month and on your threadbare budget you’d soon be unable to meet some other payment and bank charges would start to buildup from bounced checks.

I don’t think you have any logical solution other than bankruptcy at this point. You’ve been unable to find a second job and increase income and your expenses are to the bone already so dealing with the debts is the next step.

Find a local bankruptcy attorney you like, make an appointment for a free consultation, and go in and see them. Bankruptcy is not something to be afraid of. In your situation it will provide you with relief from debts you can’t afford nor possibly meet. Rather than be punished by bankruptcy you will finally be able to get some peace of mind and a fresh start.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: HELP! I am Drowning in Debt. – Barb

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• I Am Married to a Former Marine And Have Money Problems Indirectly Related to His Service. – Angela
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“Dear Steve,

Husband owns a LLc company with him being the only employee. I work part time thur a employer. I have tried unsuccessfully to find a full time job. Need help with personal credit situations without hurting our business.

My husband owns a llc company that is the main income in our house. The company is in fine shape credit wise, but our personal credit is behide due to most of our main income going back into the business. We have credit card debt and also we are behind on our morgtage. Can we file for bankruptcy to help with our personal situation and not touch our llc? We do run the llc out of our home.

Brandi”

Dear Brandi,

The limited liability company (LLC) is a separate legal entity from you so you could go personally bankrupt. The only issues are going to be if you personally guaranteed any of the business debt or business equipment the company currently uses. Additionally the value of the LLC may have to be factored into your assets.

All of these things can easily be addressed by a bankruptcy attorney. I think you should find a local bankruptcy attorney you like and go in and see them. The both of you should go so you can be sure to ask all the LLC questions and leave that appointment feeling confident in what you learned.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: Can We File Bankruptcy on Our Personal Debt and Not Include My Husband’s LLC? – Brandi

Other Related Articles to Read

• Will I Be Responsible for My LLC Debt When it Folds? – Lisa
• My Husband Has an LLC That Might Be Going Under. – Katie
• My Part Time Computer Repair Business is Going Down the Tubes. – Eric
• Are the S Corp and LLC Debts Debts Going to Cause Us to Lose Our Home? – Sally

“Dear Steve,

Okay. My Mother In Law has severe Alzheimer’s. Her estate was swallowed up by the first institution she lived in, but when that ran out we had to get her on Medicaid and put her in a different institution. She is now technically destitute; her social security goes directly to the institution, her stocks and IRAs are depleted to nothing.

My husband has Power of Attorney, both financial and medical. He’s been paying off her credit card — over $20,000 balance — but we can’t do it anymore. We’ve heard a lot of conflicting information about our liability to the card. He’s an authorized signer (but not a co-owner as far as we know), and has the financial POA.

We’ve been told to let it default, but we don’t want my husband’s credit pinged. We know this can happen because he went bankrupt 15 years ago (before we were married) and they tried to make me pay his credit off because I was an authorized signer on his card.

Anyway, I’ve also heard that we should get Medicaid to write a letter with a statement about her financial situation and send that to the card to get them to go away. In this economy, we just can’t afford her card with its 23% interest and massive monthly payments.

Are we liable? Can we get out from under her debt?

Cecily”

Dear Cecily,

You have no obligation to pay off the debt of your mother-in-law. It’s nice that you tried to help out but that’s it, just nice.

A better investment of funds at this point would be for her to go bankrupt and end these debts once and for all. Otherwise you can just stop paying those debts and then deal with the collections stuff they will throw at her, not you. Even if they sue your mother-in-law there is no downside in a suit since she has no assets in her estate to go after.

I know it feels wrong and hard to not pay but the fact is you are repaying a debt that is not your responsibility or liability. You are doing it because you want to, not because you have to.

The good news is that the debt stops with her. It is not inherited. I would suggest that you immediately take your husband off as an authorized user. There are no advantages for him to be on the card at this point. You have that option since he is not a co-signer.

As far as a creditor going after an authorized user, nice try, but unless the authorized user has actually used the card knowing the person could not pay or after their death, there is little the creditor can actually do.

You can write letters if you want but it does not absolve the debt. It is only informational.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: My Mother-In-Law Has Alzheimer’s and a Lot of Debt. Are We Liable? – Cecily

Other Related Articles to Read

• BRIEF: Johnson County officials warn seniors about phone scam – TMCnet
• Medicaid scam brings five-year sentence for New Orleans woman – New Orleans Times-Picayune
• Johnson County officials warn seniors about phone scam – Kansas City Star
• Meet Paul: LendingClub.com Borrower Taking Control of Debt Influenced by His Bipolar Condition

“Dear Steve,

Have you heard of the National Debt Crisis Center? Who should I use to consildate my credit cards and pay the lowest amount?

Eric”

Dear Eric,

I had not heard of the National Debt Crisis Center before I got your question. I assume you are talking about the folks at this site.

Maybe this is just an oversight on their part but the services page says:

Through our Personal Financial Analysis we can help you determine which program is best suited for your particular needs. We can then match you with an organization best suited to help you with your specific needs. The solutions that we can recommend

• Debt Consolidation
• Debt Settlement
• Mortgage/Foreclosure Assistance
• Budgeting Assistance
• Credit Counseling
• Financial Education

We recommend the best solution for your individual situation.

What struck me is that bankruptcy is not on that list. So does that mean they steer people away from bankruptcy and only into one of the listed solutions? If so, that’s a red flag for me.

I also used their online calculator and plugged in $25,000 in unsecured debt and below you can see the result of their online ‘Debt Analyzer’.

The results indicate the person would get out of debt in three years and save $44,000 interest and debt on a smaller payment with their program. That tells me the recommended solution is a debt settlement program and that’s another red flag for me.

Another concern is that the NDCC says it is a “national referral service” and “Debt repayment solutions are provided by licensed third party organizations.” So the NDCC is not who you’d actually work with.

Finally, I have an issue when a company does not publish where they are located. So I do have to give them a thumbs up for publishing their address on the site. Good for them. Thank you.

in my research they also appear to be a part of a company called CardEX America, Inc. They share the same address and the BBB report lists them with the same owner.

I followed the client login link and it led me to a company called GNUSA Marketing at the very same address as NDCC. GNUSA stands for Global Networking USA Marketing and they appear to be a backend servicer for the debt management industry.

I especially enjoyed the statement on their site: “The average retention rate is twenty four months, our retention rate is thirty nine months. Longer retention means more revenue for you.” It just supports my previous article on the success rates of credit counseling programs.

So I’m utterly confused about this company at this point. The calculator on the NDDC site indicates the solution they promote is a debt settlement program but their roots seem to be in managing debt management plans and they say they are a national referral service. Huh?

Hopefully someone from NDCC can post a comment helping to clarify all this for both of us.

So what is your situation? Are you barely getting by or just want to reduce your interest rate? Have you had a reduction in income, what’s pressing you to seek help right now?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: Have You Heard of the National Debt Crisis Center? – Eric

Other Related Articles to Read

• The Coastal Credit Solutions Advisor Recommended Debt Settlement. – Jeff
• Love Irony? You’ll Love This. Debt Settlement Industry Upset About Greed and Quality of…Itself.
• I Signed Up With a Debt Settlement Company But I’m Afraid to Quit. – Frank
• The Selling of Debt Settlement Services. It’s Easy to Sucker You In.
• Debt Settlement Lies & Inside How Debt Settlement Services Are Sold

“Dear Steve,

Have capitol one credit card for about 7 years now never late. In Dec 2008 the business where I am working cut my hours and now I am with reduced pay. Wife wasn’t working but now she is only a little more than minimum wage. Was able before to pay bills but now more difficult. Behind on credit cards but making payments on time but not enough. Behind on mortgage too and asked company HFC to refi before I was late they said no. So now in pre foreclosure in new jersey.

I have to go to court next month for capitol one they are sueing me for $6400.00. I called there lawyer and he said pay up 2500.00 or see you in court. I tried to explain but he said see you. I wanted to make $100.00 a month with no fees he said no.

Should I get lawyer or go in with explanation and tell judge I have payed only $55.00 to 75.00 a month since Dec 2008 and they took my money but would not work out plan with me. I cannot afford more. I’m stuck. Is there anyone to call that can help talk to lawyer before I go I can’t get pay garnished or more bad credit.

Please help.

Jake”

Dear Jake,

With a $6,400 balance the minimum payments would have been around $130. You said you have been making payments of $50 to $75 a month. Yeah, that’s not going to cut it. If you send any payment less than the minimum amount due your account will become more and more delinquent as the months pass. Eventually your account may land on a lawyers desk and you will be sued. Jake, it’s just a flowchart process, not individual consideration.

Of course you always deserve to be heard in court but I’m confused on what your argument would be. It sounds like you hope to rest your position on the fact you sent some but less than the minimum payment required. All the judge has to do is be presented with your contractual agreement from Capital One and it will be evident you have not been able to meet your contractual promise.

The lawyer you need to speak to is a bankruptcy lawyer. Bankruptcy is the ONLY option you have that will provide you with legal protection and relief from this situation. Bankruptcy will end this court case and prevent any judgment or garnishment. And it will also address the rest of your debt at the same time.

So find a local bankruptcy attorney you like and make an appointment to go talk to them about your situation.

Lastly, an attorney summed up these default lawsuits for me very well once when I made the argument the person was doing the best they could under the circumstances. He said, “Steve the judge will decide this as a matter of law. If the person failed to honor the contractual agreement, they will lose. It is out of the hands of the judge.”

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: Capital One Doesn’t Care I’ve Been a Good Customer for Seven Years and They Are Coming After Me. – Jake

Other Related Articles to Read

• I’m Being Sued By Capital One. Should I Go Bankrupt? – Laura
• New UK Debt Relief Trickery Now Labeled a Scam
• Capital One is Suing Me and I Have 30 Days to Respond. – Sue
• Capital One is Suing Me and I’m Really Depressed. – Genie
• I Filed Bankruptcy and Debt Collectors Are Violating My FDCPA Rights – Maria

“Dear Steve,

I was hospitalized in 2004 and paid out-of-pocket the balance that my insurance did not cover. I payed off and settled all debts at the beginning of 2005 with the hospital. They told me that I was clear and owed nothing else. This was almost 5 yrs ago and have not heard or received anything from them at all since.

I get a call today from a collection agency trying to collect on the $914 balanced that I payed off. I got layed off shortly after my hospitalizatiionn and had to use part of my severance pay to pay the $914. I told the woman from the agency that I had already payed it. She said, “Okay, just send us a copy of the cancelled check and we’ll drop it.” I said that I didn’t know if I still had the copy of the cancelled check from almost 5 yrs age. She then told me if I couldn’t come up with proof of payment that I would have to pay the debt and they would be happy to set me up on a payment plan.

I’ve heard recently that many patients from this hospital have been recently contacted about paying old debts they had already payed. They were being told the same thing-to come up with proof of payment or else pay the debt. What’s going on here? What are my rights and what can I do? The hospital is in very bad financial shape right now so I don’t know if that has anything to do with it.

Stacey”

Dear Stacey,

Without proof that the debt was paid, either by a statement you received after you made the original $914 payment or some other proof of payment, they’ve got you in a bind with this zombie debt (old debt that comes back to life).

But my first step would be to contact the hospital for a statement on your account. They certainly have the records from back then. Since you say you paid the hospital directly then the payment should show there and that would end this matter.

I would also send a letter by traceable means to the collection company stating that you dispute the validity of this debt and ask them for proof that you owe this debt seine you paid it off previously.

You could also contact your bank from back then and ask them to research the matter for you. While they may charge you a small research fee for doing so, a copy of the $914 check would be invaluable in resolving this quickly.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I’m Being Asked to Pay On a Debt I Paid But Can’t Find the Proof. – Stacey

Other Related Articles to Read

• I Just Got a Call From a Debt Collector On a Eight Year Old Debt. – Destiny
• They Say I Owe Magnolia Hospital a Debt From Twelve Years Ago. – Shelley
• I Have a Zombie Debt. I Paid a Debt Off That They Want to Collect On Again. – Dawne
• Beware Of Zombie Debt Collectors

“Dear Mr Steve-

I am a Sri lankan by nationality, i have a total debt of 250,000 with one huge loan amounting 120,000 with one bank alone.

I had lost my job almost 6 months back and i am back in my home country.

I have even received calls from local recovery agents here in Sri Lanka. Will they be able to file a police case on my name here in Sri lanka or would those banks in Dubai be able to take any legal action against me in Sri Lanka.

Please help

Your advise is much appreciated

Thanks a million & Regards

Ahmed”

Dear Ahmed,

The bottom line is ultimately I am not that familiar with Sri Lankan debt regulations so I have to give you some more generalized advice.

It is unlikely you will be arrested in Sri Lanka for debt problems in Dubai. While Dubai does toss people in jail for debt problems it only happens to people physically in Dubai, not their home countries, unless potentially they live in the Gulf GCC countries.

In matters such as this you can never go wrong with finding a local legal representative or attorney to discuss this situation with. An attorney is a legal professional who’s job it is to know and understand the local law.

An attorney is not going to turn you in or arrest you. The attorney will advise you. And while that advice might cost a small amount, it will provide you with a large benefit, knowledge and comfort.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: Will I Be Arrested in Sri Lanka for My Debts? – Ahmed

Other Related Articles to Read

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“Dear Steve,

I have $83K in credit card debt and I am current with payments and have not had a late payment in many years. Regardless of my payment history, my card issuers have all significantly raised the interest rates which is making it difficult to make my payment.

I have been communicating with Jesse Neisen (debtgotoguy.com) regarding entering a debt settlement program, but I have not yet committed. I hesitant to go this route, but the debt management companies have been unable to significantly lower my average rate to make my situation any better than I already have.

I am virtually moments away from submitting my paperwork for the settlement program, but scared witless. I also went through a bankruptcy in 1999 and have been so proud to keep my debts in check for the past 20 years. Unfortunately, my husband expe rienced a $22k/year drop in pay in July 2006, and this is the mitigating circumstance that has led us to this point.

In your opinion, should I go the settement route? My credit rating has dropped from 720 to 615 in the last 2 years. I’ve already closed several card accounts to try and keep my rates low, but doing this is screwing up my credit rating as well. HELP! I’m so afraid of doing something that will make me worse off than I already am!

Mary”

Dear Mary,

I don’t know Jesse except for visiting his website and seeing him on Twitter @DebtGoToGuy.

From what you have said and a look at the site it does appear he is focused towards debt settlement.

In my humble opinion only people that have cash on hand and are fully aware of the tax and credit implications of debt settlement are good candidates to embark on that route.

If you would have to enroll in a debt settlement program and then save money each month over years before debts can be settled that path is problematic at best.

But I think Jesse and others would agree with me that the only way to make a fully informed decision about what is right for you is for you not to latch on to any one solution before researching all of them. You’ve already checked out credit counseling, good for you.

If you have not met with a bankruptcy attorney, you should. You don’t need to meet with them to go bankrupt, but to understand what bankruptcy would offer and mean for you in your situation. Most bankruptcy attorneys offer a free consultation so it’s not going to cost you anything.

Just find a local bankruptcy attorney you like, make an appointment, and go in and meet face-to-face. Do that before you sign on with any program from anybody.

Once you meet with the bankruptcy attorney you can then make an educated decision about what is best for you based on the facts and multiple options. Right now it sounds like you are simply trying to decide if the debtgotoguy.com route is the best for you but that’s a bit like saying is a car tall, compared to what?

I know you went through bankruptcy before but times have changed. Also, I want you to avoid making this decision based on fear, but on knowledge.

While it sounds like you want to avoid bankruptcy for fear of how it will impact your credit, your current situation is already lowering your score and debt settlement will also.

It’s time for an informed and organized plan of action and not a knee-jerk reactionary solution. Do you agree?

So does my suggestion make sense to you? Does it sound like a prudent course to follow before you leap at any particular solution?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: So What About Jesse Neisen and DebtGoToGuy.com, Should I Go With Him? – Mary

Other Related Articles to Read

• Global Client Solutions & Rocky Mountain Bank & Trust, Good People Tangled in Some Bad Debt Settlement Business
• I’m So Embarrassed About My Money Situation. Can You Tell Me The Truth About Debt Settlement?- Gloria
• New York Attorney General Announces Nationwide Investigation Into Debt Settlement Industry
• Should We Use Freedom Debt Relief or an Attorney to Help Us With Debt Settlement? – Debbie

An article out today, full of data, and experts I respect supports my observations and has observed the same phenomenon I have. The need for bankruptcy protection is spreading up the economic food chain.

Bankruptcy rates are skyrocketing again after the misguided and foolish bankruptcy reform of 2005. A reform I remind you that was allegedly aimed at stopping bankruptcy filings by people taking advantage of the ’system’. There never were any such people. In the reform of 2005 banks and creditors simply bought themselves a new bankruptcy law they felt treated them more favorably. The end result, more consumers punished by making bankruptcy more expensive and cumbersome but the filings are right back to where they were.

“Carrying debt is like carrying a backpack full of bricks,” says James Doan, a bankruptcy attorney in San Clemente, Calif. “It weighs people down. They feel like failures. The are embarrassed and ashamed.”

Those words of James Doan from the story have always rung true, before and after the bankruptcy reform. They are emotions experienced by people facing money troubles today. There are just more of them.

A new study by Elizabeth Warren, Harvard Law School Leo Gottlieb professor of law, and Deborah Thorne, Ohio University associate professor of sociology, finds that personal bankruptcy has become a largely middle-class phenomenon led by filers who are college-educated and owners of homes. According to the study, “The Vulnerable Middle Class: Bankruptcy and Class Status,” the shift occurred even before the Great Recession.

“The bankruptcy filings are a warning about the risks now facing middle-class Americans,” says Warren, chair of the Congressional Oversight Panel on the Troubled Asset Relief Program (TARP). No longer can they count on a college education, a good job and homeownership to protect them from financial collapse.

“It’s horrifying for people who are not used to anything but an upward trajectory,” says Bob Anderson, a bankruptcy lawyer in Wilmington, N.C. “They are used to calling the shots.

Middle-class families were encouraged to spend. But that often turned into a disaster when their bills increased and wages dwindled.

“My wife and I were great at lubricating the economy,” says Rock Macke, who lives with his wife and two children in Rancho Santa Margarita, Calif. “We loved to spend money, as is the middle-class thing to do.” Source“

And for the record, I have never suggested bankruptcy when a need did not exist for the protection and relief it offers. I am by nature a compassionate soul and always believe people deserve a second chance when faced with traumatic events.

Steve
@GetOutOfDebtGuy

Source: Bankruptcy Becoming More Common Among Upper Middle Class Out of Necessity

Other Related Articles to Read

• Elizabeth Warren Fights for New Consumer Financial Protection Agency
• Consumer Bankruptcy Attorneys Stand Behind Government Plan to Allow Bankruptcy Judges to Modify Mortgages
• Bankruptcy Judges Should Have the Power to Modify Mortgages
• Tithing, Saving and Getting Out Of Debt – The Personal Finance Bloggers Brain Trust

“Dear Steve,

My husband and I are currently about 40,000 in debt. This is not including our mortgage or car payment only credit cards, ect. We only make the monthly minimum payments each month but all of the cards/loans have different interest rates so our payment range from 20 – 362 a month. We are struggling to make ends meet due to my job loss at the beginning of the year. I have recently found a new job but took a pay cut. I have even taken a second job to help pay down this debt.

My question is what is our best option to get out of debt and free up some money each month? I don’t want to file bankruptcy if possible and debt managment plans worry me because I don’t know which one are legit. We can’t refinance our morgage because of our debt. I am really worried and stressed.

Rachel”

Dear Rachel,

Whew, that is a lot of stress to carry around with you.

Money problems are best first tackled by increasing income, reducing expenses or a combination of both. It sounds like you’ve tried to increase the income with the second job. Good for you.

If you’ve already tried to get better control over your spending but can’t or you are struggling with a budget then a solution like the web based tool Mvelopes might come in handy. It is an automated way to see where you money is going so you can make some informed decisions about where you might want to make some changes.

If you can only afford the minimum payments on your debt even with all the efforts above, it will take you decades to get out of debt. The key to any debt reduction tool is to apply some extra funds each month using the debt snowball method to reduce your debt.

You could also look at the debt consolidation loan site funded by peer-to-peer lenders at LendingClub.com. LendingClub is one of the few places people can still get a consolidation loan. And if the interest rate on the loan is lower than what you are collectively paying, that might give you the monthly payment breathing room you are looking for.

If after all of that you are still just scraping along, you and I will have to look at some other options. But we can do that once you give me some updates or feedback in the comments.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: We Are $40,000 in Credit Card Debt and Make Only the Monthly Minimum Payment. – Rachel

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“Dear Steve,

My wife and I have been unemployed for a year….we own(buying) a home in which we would like to keep along with 1 vehicle.We are working with the mortgage co. and auto co. but there is also a line of credit loan on our house in collections.We are at wits end now with other collections depts. calling every day.These include,repoed vehicle,medical,credit card,and of course the HELOC on our home. We worked so hard to build our credit back up from the past poor credit history we had and now it is nose diving again. We have 2 kids in their teens that I can tell they are feeling the effects of our situation and it hurts.

Is there anything out there that can help us as we are flat broke?

David”

Dear David,

You are wise to tackle this situation since it is impacting your kids.

I am sure your children are observing the collection efforts and the stress you and your wife are feeling. It is natural for them to worry and get stressed themselves. The worst part os the kids only see the effects of the debt problems but have no control to deal with it, that is, unless you let them.

In your situation bankruptcy seems like the logical and only sensible approach. You have all this debt cascading down on you but no means to repay the debt. The only legal way to get a fresh start will be to seek bankruptcy protection through the court.

Depending on the value of your home, the home equity line of credit may be able to be reduced or eliminated in a Chapter 13 bankruptcy so there are some good benefits of looking closely at bankruptcy.

I would suggest that you find a local bankruptcy attorney you like. Make an appointment with them and go in and meet the person face-to-face. The attorney will review your situation. Be sure to ask all the questions you can think of.

Next, it might not be a bad idea, if you agree, to go home and discuss the bankruptcy approach as a family. Let everyone participate in understanding the path you may embark on and understand what bankruptcy means for you.

The kids will find some comfort in knowing under bankruptcy you will now have legal protection and the chance to start over. Rather than watching events unfold they can be knowing observers and that will minimize their fear from uncertainty.

When it comes to kids and teenagers and financial problems at home, my approach is they are small or young people, not stupid.

As far as working hard to build the credit back up, you know it can be done again.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I Can Tell Our Kids Are Feeling the Stress of Our Debt. – David

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“Dear Steve,

I was a student in Chicago, IL on a F-1 visa. During my almost four years of stay I had a perfect record of paying off all my bills on time (credit card, phone, cell, internet, rent). However, I had to leave in a rush, since I had family issues back home in Serbia. Now, I am studying an American college in Serbia and I plan on looking for a job in Chicago in due time. However, before I left, I didn’t have the chance to pay for my last months rent, or bills at ATT. I realize this will affect my credit score, but my worry is that it will prevent me from getting a visa in the future. I realize this is more of an emigration question, but still, I had to try.

The money I owe isn’t a lot, it probably doesn’t exceed $2000. I would want to pay it off, I just don’t know where to start. Should I contact my leasing company and ATT directly and settle the debt with them? Will this be sufficient? Being denied a visa is pretty much a one time thing here and I don’t want to take that risk.

Thanks!!!

Danica”

Dear Danica,

You are smart for dealing with this situation now.

I’m a bit out of my element on the immigration technicalities but if you let the old debt go without intervention and it becomes a court case, that might create an issue to deal with.

But the debt by itself it not a problem in my experience.

It is easy to find the debt now, as least what its reported to the credit bureaus. Get a copy of your consolidated credit report, the link is the same one I use when I order my credit report.

The consolidated credit report will show you exactly what is being reported and give you contact information for the people listed on the credit report.

Alternatively, you could contact AT&T and the leasing company directly and make arrangements directly with them if they still have the debt and have not sold it to another entity. The advantage of getting the consolidated credit report is it is the best way to look at what is being reported about you at one time.

If you start working on this right now you’ll easily get it all taken care of before it becomes an issue. And by the way, welcome back.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: Will My Old Debt Stop Me from Getting a U.S. Visa? – Danica

Other Related Articles to Read

• Top 10 breakfast foods – WHNT-TV
• Guyanese pair faces joint immigration charges – Stabroek News
• Nigeria : Nigerian Marriage Sparks Visa Row in UK – AllAfrica.com
• Overseas students buy their way in with illegal kickbacks – News.com.au
• Feds Plan Increased H-1B Site Inspections – eWeek

“Dear Steve,

I came here to Dubai from 5 years , like all the people i was working normally, i had loans ( hsbc, standard ) (personal loans ) and some credit , in January the work closed and i went out my country , i came back in last sep on a visit visa, and now i wanna renew my visa the right on the visa paper that i had a police case , i have only a 10 days till my current visa to finish , and i dont have this big amount of mony to pay all the banks so what shall i do ?

Mike”

Dear Mike,

If I read your question correctly, there is already a police case against you for not paying debt. If that is correct then you have two logical options. The first is to leave the country, the second is to deal with the debt. Depending on the amount of the debt one of the easiest ways to deal with it is to go to jail for three weeks and leave with the debt cleared.

However, if you do have a case filed against you it seems wise that you should visit with a lawyer or immigration attorney to get some specific legal advice in Dubai.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I’m Trying to Get a Visa in Dubai But I Owe Money. – Mike

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“Dear Steve,

I am in debt and need help. I have 6300 debt with 10 companies. I am on benefit with two kids and not much money. The debt manager wants 40 of my 100 each month and says it will take me 8 years to pay it off. But is that the best way. I offered everybody 5 to 10 per month and wanted to do snowball theorie but they want much more money. I am moving now and dont know if i should tell them where to and if i should pay off say 2 companies in 3 month and then pay other ones. Please answer me.

Thanks.

Alicia”

Dear Alicia,

My primary concern is the $5 a month strategy really doesn’t resolve anything. Paying that taken payment will neither reduce your debt nor prevent a creditor from taking legal action.

Honestly, in your situation the best course of action is to talk to a local bankruptcy attorney and find out about discharging your debt and getting a fresh start, or using the debt snowball approach to repaying your debt.

I just think that making payments with the few dollars you have left is not a wise idea. I’d rather see you put those dollars into a savings account or emergency fund to give you a little financial protection when the next surprise happens. And it will.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big hug.

Steve
@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

Source: I’m in Debt, on Benefits, Have Kids, and Not Much Money. – Alicia

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