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Posts: 1
Credits: 63.95

I'm new and was very hesitant to sign up for this site, but I know it's something that needed to be done.

My husband and I have some debt. Some good, some bad. They're pretty equal in the good versus bad debt department.

I'm very interested in getting the collection agencies (whom I've never spoken to, even though they've all attached my name to debt that was previously solely in my husbands name) off our back. They're almost like a black cloud over me...

Basically, I'm wondering what kind of debt solution is right for me.

We have four collections accounts, all with different agencies. Total debt is around $7500. Most of these have SOL coming up in the next two years or so (I'm in WV). We do have the money to pay these debts in payments. There's no way we could pay these in one lump sum. We live on a very strict budget.

We also have a personal loan we took out through another company. It's current, but I'd love to get rid of it. The amount on it is around $8500.

We could probably put somewhere near $200 (perhaps a little less) towards paying these debts off. However, I've heard that debt management plans take upwards of five years and I don't really want to be in this situation longer than I have to.

I don't believe we have the credit to take out a consolidation loan (husband's credit is low 500's, mine is low 600's, husband is the breadwinner).

Thanks in advance for any advice you can give me.

Well since you signed up on this site you are entitled to a free debt consult. They will either call you if that how you indicated contact you or you can all the 1-800-601-1579 and they can give you some ideas or click on chat button to talk to someone immediately during their operating hours.

Hold on others will be along shortly to advise you futher and welcome to the site.

Sub: #1 posted on Sun, 07/20/2008 - 09:21

ladybug ladybug

(Posts: 2757 | Credits: 282.45)

Hey smish,

Hopefully I can shed a little light on some of your debt relief options...

1) debt management Plans -- Debt Management Plans are offered through credit counseling Agencies. Sometimes they can be useful for people who cannot continue to afford their monthly payments, need lower interest rates, and need help organizing their finances. dmp's will often have a preset repayment plan with your creditors to help you budget and distribute a monthly payment according to highest priority accounts. A drawback to DMP, is that some of them receive their funds from the very creditors you are trying to settle with, so the repayment plan may not have your best interest in mind.

2) debt settlement -- Debt Settlement programs can be very helpful to lower the amount you pay back to your creditors usually by half and can do so in typically 12-36 months. Unfortunately, many debt settlement companies require their clients to have at least $10,000 in unsecured debt, so you may not qualify. While debt settlement companies cannot stop all collection calls, some companies offer Client Advocacy programs and will deal with your collection agencies directly so you do not have to. Also, if you feel like the collection agencies are becoming threatening or over the line, they will provide you with the tools necessary to deal with them. Debt Settlement can have a negative affect on your credit because you stop making payments to your creditors, but since you have bad credit already, a debt settlement plan can get you out of debt so you can start rebuilding a good credit score. I urge you to check this option out to see if you could possibly qualify.

3) Consolidation loans -- Consolidation loans, such as Home equity loans, can help you pay off bills and debts very quickly, but you are putting your home up as collateral, so if you default on the loan your house could be seized. You also said that you have bad credit which may make it difficult finding a loan with a low interest rate.

As ladybug advised you; you should have a consultation with a professional debt consultant to see which option may be right for you. I hope this insight helped a little. Good luck with everything.


Sub: #2 posted on Mon, 07/21/2008 - 20:59

amcshane amcshane

(Posts: 7 | Credits: 1.8)

I can't give you any debt consolidation advice, but I can say that this forum has a really great group of informed and helpful people as moderators and posters. They have all been so helpful to me and so many others, so you have definitely come to the right place to get on the path to solving your problems.

Are there any quick, cheap and easy fixes? Probably not. But there ARE fixes, you won't regret joining this forum!

Good Luck!

Sub: #3 posted on Mon, 07/21/2008 - 21:23

smo65d11 smo65d11

(Posts: 1468 | Credits: 133.12)

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