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I AM IN NJ HAVE ABOUT 10,000 IN credit card debt CAN YOU TELL ME WHAT ARE MY CHOICES




debt management Plan or dmp

This plan is administered by a consumer credit counseling agency.Credit counseling is for people who are not overextended and thus can afford their minimum payments and just need one payment with a lower interest rate. Credit Counseling agencies will be able to negotiate with all creditors to accept a lower interest rate " usually around 6%-10%, waive late fees and over limit fees and spread your payments out over 5 to 7 years. You will repay 100% of your current balance with a payment that typically runs about 3% to 4% of your total debt. If you have the ability to repay the full debt you borrowed you should do a Debt Management Plan. This program doesn`t hurt your FICO score but will show on your credit report you are in a program to keep you from getting more credit until you complete the program. Once you complete the program it comes off your report as if you were never in the program.

debt settlement

Debt Settlement is a hardship program for people who can`t afford the payments for a debt management plan, can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy. If and only if you are overextended or if your debt are already severely delinquent should you consider debt settlement.It will get you a monthly payment around half of what you would pay in a DMP and you will be out of debt usually around 24-36 months. This program does hurt your fico score because creditors won`t settlement until the account is 120 days + past due. However if you are a good candidate for this program your bills are most likely past due anyways or about to be so the fact it hurts your score would be irrelevant. This program is designed to get you out of debt fast so you will be in a prime position to start reestablishing your credit and avoid bankruptcy.

Due to the many bad settlement companies that ruined it for the few legit ones Debt Settlement is banned in NJ. If a settlement company got caught doing business in that state it is an automatic 50k fine to that company. The only type of settlement company that can operate in that state would be a law firm with an attorney licensed to practice law in NJ.You will have a hard time finding a settlement company that handles that state legally. I am sure they are not the only company but the only one company that I know that can legally operate in New Jersey is The Johnson Law Group located in Nevada. They are a network of attorneys and thus have a lawyer in NJ that can help you. I looked them up and they have a good reputation on the BBB. I am not endorsing them but just trying to help point you in the right direction. I hope this helps answer you question :D

Sub: #1 posted on Thu, 07/03/2008 - 04:46

mobile0311 mobile0311
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(Posts: 1817 | Credits: 104.57)

Great article. i wish I had read it before I did anything. I went with debtwave to consolodate my debts and thy ripped me off. I'm going to try the links you've provided.
google for debtwave and you'll see the debtwaveisascam site. I wish I'd done this first.

Sub: #2 posted on Fri, 07/04/2008 - 03:00

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I would have to disagree with you . Debt Wave happens to be one of the best credit counseling agencies out there. They are members of the BBB and have only five complains ever with the BBB. Can you be more specific on how they supposedly ripped you off.

http://sandiego.bbb.org/WWWRoot/Report.aspx?site=26&am p;bbb=1186&firm=20004374

Sub: #3 posted on Fri, 07/04/2008 - 04:11

mobile0311 mobile0311
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(Posts: 1817 | Credits: 104.57)

Awesome info mobile!!

Sub: #4 posted on Fri, 07/04/2008 - 04:33

jenoliver33 jenoliver33

(Posts: 56 | Credits: 4.35)

In NJ seek the help of a local law firm, or before signing on with a dmp make sure they are non profit and registered to do business in the state of NJ, New Jersey does not allow for profit payment adjusters to operate in their state!

Sub: #5 posted on Fri, 07/04/2008 - 07:46

pemperandgartle pemperandgartle

(Posts: 57 | Credits: 9.16)

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