FC Community
Discussion Boards => Off-Topic => Topic started by: melodylogan45 on November 04, 2015, 05:16:08 am
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Have you ever purchased a debt elimination program or attended a debt elimination
seminar?
I have been listening to a cd alot within the last few days on my mp3 player so I
Can stay focused on the first debt that I need to eliminate.
I have attended a free seminar in my local area some years ago,
But I have not purchased a program.
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Somewhat agree...there's a lot of tips out there to "get rich" and "pay off debt" but it's really pretty simple...you just have to have the discipline and hard work to do it.
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My brother used one a few years back and it was a long process but it did work for him, the company consolidated his debt, worked with the companies he owed and settled with them, all he had to do was send them a check every month but eventually it worked.
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I agree 100% with countrygirl. Why would you pay a debt consolation to help eliminate your bills? That's just another bill. Pay your rent/mortgage every month. Call your credit cards and talk to customer service. Explain your situation and I know they can make arrangements to lower your payments and/or lower your APR.
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Do NOT purchase a program. Do NOT do a consolidation program. From experience, I can tell you that is more detrimental to your credit than if you were to file bankruptcy.
DO look at your balances and interest rates. Some people like the snowball effect - start with paying as much as you can towards your smaller balance, all while paying the minimums on your other debts. Continue to pay the same amount (or more) towards debt, even as you eliminate ones.
Some people pay off those with the higher interest rate first. Always send extra money and do NOT continue to use the cards!
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Somewhat agree...there's a lot of tips out there to "get rich" and "pay off debt" but it's really pretty simple...you just have to have the discipline and hard work to do it.
There are no get rich quick techniques. There just aren't. Kind of like the ad on this page where some idiot claims you can make $15,000 a month from home. Yeah, that simply is not true. And I am surprised FC has that ad on their site. Paying off debt is a slow hard process. And not everyone who has credit card debt was careless. Or frivolous spending. I know people who had to pay electric bills, house payments, insurance, medical bills, all that on a credit card because they simply could not make enough working on their job. And it also is not as easy as get a second job. Most employers want you to be available to THEM all hours they are open and won't work with a second job.
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no there is such a thing, also debt consolidation, it stratigically or supposed to be, helps you find ways on how you can pay off your debt; but nonetheless the best solution to debt is "do not spend more than you can afford" period
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I do not agree with those that said not to buy a program. You need to do what works for you. I had some debts coming out of college and I paid them off. I began with the credit card that had the smallest balance (and smallest payment/highest interest rate) and concentrated on paying it off the quickest. I made minimum payments on all the rest of my debt. I paid it off in two months and cut the card up. I then took the money that would normally go to the first card and applied it to the 2nd card and concentrated on paying that card off. Card number two took five months to pay off. The money that would normally go to the first two cards was then applied to card number three and so on until I paid off my car. Then I concentrated on my house and paid the first one off in fourteen years. That system worked for me.
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Paying down debt is admittedly very difficult, especially when interest rates are so high. But my rule of thumb is to pay off the biggest chunk you can on your highest paying credit card. Then pay at least the minimum on your other credit cards. When your first, highest, credit card is paid off, then start on the next highest charging card. I have never used a debt paying program but I believe they are pretty good. I think they are a good mental move because it's like you're handing over your debt worries and then agreeing to pay a set amount every month until it is paid off. It's good to know that it is under control, even if you haven't yet paid it off.
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More often than not, debt elimination programs are scams. If not scams, they make very little sense financially. You're always going to be better off if you can solve financially problems yourself.
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Considering that the ultimate end state is to eliminate debt, the last thing that I would do is purchase a debt elimination program. I nearly fell into that trap a few years ago. Thankfully, friends and family talked me out of it. As many of the posters on this thread have pointed out, the majority of those programs are nothing but scams. Your best bet is to seek the advice of a certified financial advisor/planner.
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I would never purchase such a program. It's fairly easy to understand debt elimination. The most important factor might be the interest rate. Most people can't afford to pay off debt because of interest.
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I was in debt a few years back before I bought my house and I set a goal to pay off my debt within 2 years and I accomplished this goal! Yay me! lol ... The trick is to call ALL your debtors and make a deal with them. Most of them will cut your debt in half just to have it paid off. I signed up for credit monitoring while in the process of cleaning up my credit. I had to do this if I ever wanted to buy a home. In 2008, I made this dream a reality for me and I never felt so proud of myself for doing it on my own! Anyone can do this! It just takes time and patience! Don't pay anyone to consolidate your debt for you! good luck to everyone! :)
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i find no reason to buy when you can find so many free sources. years ago i went to credit consumer counseling and they offered free classes.
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Purchasing information on debt consolidation seems counterproductive. I always look at the debt with the smallest amount and focus on that first. It's a slow process especially when you know exactly how much you bring in each month but it will dwindle down to nothing if you stick with a plan.
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used to be in a small amount jof debt problem,,,,, but i'm proud to say I got myself out of it. Started with the lowest bills first,,,, then worked my way to the largest one. took me 3 years but I did it on my own,
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Debt problems are not always your fault, sometimes it can be circumstances beyond your control. We had some legal problems, which we finally won in court, but had tons of lawyer fees. We had my husband in an accident at work, which he is now on permanent disability, again a lot of legal and medical fees. Then the pay cut on disability from his check. The company we worked for went out of business taking out retirement accounts down with them. We are still kicking, but a lot of the credit companies DO NOT want to work with us, they want the money or they make threats of court, etc. I cannot pay minimums, but I send everyone money monthly. We have paid several off (I pay off the smallest first to feel like I am getting somewhere). As I tell them, going to small claims court will not get them money any quicker. However, one that did take us to court, the court knocked off a lot of the credit card fees saying they were excessive and borderline illegal. When they knocked off 3/4 of the bill we paid them off. Anyway, my point is sometimes it is almost out of your control. It is not as easy, as some of you have suggested, to get the money issues cleared up. You just decided to take care of it and it happened. We have cut up all of our credit cards and use only a debit card. We pay what we can every month and every one gets something. But each creditor thinks they should be the priority. I also wonder why on hospital visits/surgeries each person bills separately and think they are the priority.
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The hospital / doctors / etc bill separate because they are separate. And it's not that they think they are priority over any one else they just want paid for services they provided and want the money they are owed. It's not their fault you have more debt than you can pay. I am not being smart just pointing out if you owe the bill then they are going to call you. I understand that you can't pay it if you don't have it. I know people who cry because they can't pay their bills but yet they still smoke, eat out, have cable, internet, cell phones, and on and on. I can also tell you that paying less than the min payment is the same as not paying. The old saying you can pay $1 a month and they can't do anything is foolish. And not true. They can take you to court and have your wages garnished.
We have a huge problem with free loader bums standing all over town holding signs begging for money. It is a real problem in the area right now and getting worse. But the one thing they all have in common...they tend to all have a 20oz soda or a drink from a fast food place, are smoking a cigarette, are talking on a cell phone, dressed in pretty nice clothes (jeans - new tee or sweat shirt), Point is - if you have money for cokes, cigarettes, and cell phones then you don't need to be standing on the street corner begging for money. Besides that fact that it also has been proven that the majority of them are just trying to get money for pills. Several have been offered a job - to which they said NO. And also were offered to be taken into a restaurant and get them something to eat and they also turned that down. Smh.
I know all about hard times and also how hard it is to find a good job. But sometimes you have to take what you can get. The biggest problem is so many people lie and cheat and it makes it harder on everyone. The companies who aren't getting paid are so use to be lied to they pretty much assume at this point everyone is lying. That or they don't care. They just want their money that is owed to them.
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I listen to Dave Ramsey on the radio and he has a website. He has a sensible process to getting out of debt. If you don't want to buy his book, you can check it out at your local library.
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Unfortunately, there are a lot of scammers trying to collect unrealistic debts.
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I am actually enrolled through a company called Consolidated Credit, and I am very pleased with them. While they only were able to save me about $80 extra a month, it adds up in the long run, and on top of it, they worked with my credit card companies to reduce my interest so that all my debt will be paid off in 4 years. They charge a one-time enrollment fee of $40, and only take $25 out every month for themselves, which I completely understand as they are a business and need to make a profit. I would recommend them to anyone struggling with debt!
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I wouldn't waste the money on the program. I would pay extra on all credit cards and eliminate all things that aren't needed for a year and see how much can be saved or paid down on bills.
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A lot of great answers. I think a lot of people including me are in the same boat. I l ooked at many programs but there are free ones also. Search for budget programs etc. There are a lot of people who can help you for free. I think even at some point S.O. had a free program out there . Good luck to you and to everyone else having these issues.
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Good information, trying to pay some things off before I retire.
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Those debt elimination programs are expensive and a lot of them are really scams. I would never buy one of those because some of them never pay the debt and just keep the money for themselves.
When I lost my job, i had no idea what to do about my debt. I owed almost $25K in just credit card debt on 4 cards, which was no problem to pay when I was working. I started to watch Suze Orman. i followed her advice and was debt-free within 4 years and I didn't use any debt elimination program. i still have 1 card that I didn't pay off because I keep it for emergencies.
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I have never attended a debt elimination seminar, but after my divorce I contacted a company that specialized in debt consolidation. They worked with my creditors to accept payments until everything was paid for.
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Our church put on a financial workshop one time.