Comments for Free Debt Management Program

Comment on AKPK Debt Management Program Blogger Says No To Chinese New Year by AKPK Debt Management Program Blogger’s Trip In Kuala Lumpur | Free Debt Management Program

Thu, 04 Mar 2010 01:07:10 +0000

[...] flies, right? Christmas and Chinese New Year was like yesterday only and now it’s March the [...]

Comment on Use A Personal Loan Or Debt Management Program To Pay Credit Card Debt? by Drum Wiz

Drum Wiz — Sat, 27 Feb 2010 10:43:30 +0000

I have been in the collections/credit industry for 19 years. My suggestion to you would be to try to get a loan instead of credit counseling agency. The difference is with a loan you can pay of all your debts at once. If you go thru a credit counseling agency they will still make payments and depending on the creditor interest will still accumulate.

Comment on Use A Personal Loan Or Debt Management Program To Pay Credit Card Debt? by wrkey

wrkey — Sat, 27 Feb 2010 10:12:20 +0000

Most credit counseling agencies do the same thing:

1. Tell you to cut up your credit cards to prevent farther use.
2. Negotiate settlement amounts with each CC lender. This is a ‘write off’ and will be reflected as such on your credit record.
3. Establish a set monthly payment amount that you would send to them and that they then forward to the various CC companies.

While your credit report would reflect the debt management program it would also reflect the settlement of your debts for less that amount owed. Thus, this will have a negative impact on your credit score albeit a less of an impact than if you got way behind and the accounts went to collections.

Here’s my recommendation.

1. Create a list of all your debts and put them in a table that list who, current balance, monthly payment, interest rate, due date and credit limit.
2. Create a list of all your assets and put them in a similar table that list Who, current balance, interest rate and penalty amount for early withdrawal.
3. Sort your debt list by Interest rate listing the highest interest rate first. You will want to ‘pay off’ from this list starting from the top and working down.
4. Sort your asset list by interest rate starting with the lowest. You will want to use the first listed funds to pay on your debt as these are the ones returning the least amount on your investment.
5. With these two list it will be obvious that retaining a large amount of cash that is drawing a small amount of interest is not good when compared to the high interest rate you are paying out.
6. Set a minimal amount of your investment asset that you want to keep for emergency.
7. Using your calculated available cash, begin to pay off or pay down your debt.

While paying down the debt with the biggest interest rate will save you the most over the long run, you may be better off paying down or paying off those where the monthly payment will be reduced the most and/or removed altogether. Thus, you might be able to use $4,000 of your investment to drop your monthly payments by over $150 and then you can use that ‘extra’ to compensate for the short fall in cash you have and/or pay down the other bills quicker.

All in all, you need to organize your assets and liablities in a manner that works for you and the go through a few scenarios to determine the best method for you.

Hope this helps and good luck!

Comment on Use A Personal Loan Or Debt Management Program To Pay Credit Card Debt? by MiKeNeSs

MiKeNeSs — Sat, 27 Feb 2010 09:23:17 +0000

Hey debt rules my life as well, you are not alone. A quick, well dumb question. Are you a student? If you are you can get student loans, at a low-low fixed interest rate to pay off credit cards, my old roommate did it. maybe you can do something. If not, yeah i would get a lendingtree-style loan b/c to creditors, you establish credit by paying it off in a timely fashion. Your score isn’t too bad as of right now, you’ll get something-if you go to debt management-I would think creditors see that as a reason to charge you higher rates, you already had to go to debt management-why would you pay this one timely?

Comment on Use A Personal Loan Or Debt Management Program To Pay Credit Card Debt? by Amanda H

Amanda H — Sat, 27 Feb 2010 09:16:20 +0000

Fixing things on your own is ALWAYS best– those credit counseling places might be non profit but they ask for donations– AND They hurt your score while you are in them.

If you are able to make your payments on time, you may not even qualify for their help.

Have you tried calling your CC’s directly and discussing payment plans/ideas that would get you out of debt sooner? Perhaps if you add just $10 a month they will cut your APR or lower fees. They really do try to help if you talk to them.

Also, 25K is an extreme amount of money for an unsecured loan. Unless you have a newer car you can put up as collateral, it would be VERY hard to get a loan that large.

Comment on A Credit Card Debt Woman Is Under AKPK Debt Management Program Malaysia by A $60,000 Credit Card Debt Woman’s Blog » Fork Out Another Amount To Pay March’s Payments

Wed, 24 Feb 2010 01:43:29 +0000

[...] made the February debt repayments to AKPK a few days ago. Now I am thinking if I should fork out another amount to pay March’s payments [...]

Comment on Any Advice On Entering A Debt Management Program? by Entering Into Credit Counseling With A Debt Management Program? | Free Debt Management Program

Tue, 23 Feb 2010 06:49:16 +0000

[...] Entering into credit counseling with a debt management program or … ? I am entering into a debt management program with a credit counseling company. I have [...]

Comment on Entering Into Credit Counseling With A Debt Management Program? by Virginia J

Virginia J — Fri, 19 Feb 2010 10:02:02 +0000

Dave Ramsey says when you use companies like these you get “better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don’t do it.”

I would say call your credit card companies and explain your problem and your suggestion for dealing with the problem. They will probably be happy to see that you are planning on paying anything. Remember though that if you pay half your credit card payment that you will probably be paying the interest only and you will not be getting to the root of the problem, the debt (the principle) itself. Look at the website I mentioned below. He has a lot of great ideas!

Comment on Entering Into Credit Counseling With A Debt Management Program? by CHRIS V

CHRIS V — Fri, 19 Feb 2010 09:15:19 +0000

I work for a pretty large global bank. I would stick with the CCCS program if I were you. I have worked in several areas such as auto loans, corporate/business credit cards, private label cards, co-branded cards, unsecured lines of credit, etc. There are hardship programs out there for banks to offer you, but I don’t know if it would cut your payment in half, if it did…It wouldn’t be a very long term plan. Many hardship programs are not for the life of loan/balance. The revenue comes from finance charges and late fees, which many banks do not want to part with, but all banks are different. Keep in mind, these CCCS companies have working relationships with these banks and usually get you a decent deal. Just make sure you are not signed up with a debt settlement company….Chances are, you’ll get sued.

Comment on Entering Into Credit Counseling With A Debt Management Program? by heybulldog

heybulldog — Fri, 19 Feb 2010 08:57:49 +0000

You really should be working with your creditors yourself. If you deal with it yourself you know whats going on. If you leave it up to someone else then you only know what you are told by the company you hired.
What they will do is not pay your creditors for months and then try and settle for less. You really need to do it yourself. Save the fees they charge and use it on the debt.
Remember, if they dont pay your creditors. You, and you alone are still responsible for the debt. Your creditors will come after you and not the company you hired to handle it.
They will settle for less than the amount owed but they want it asap so you need to start saving now.