Skip to main content
No. of Recommendations: 1
I am trying to reduce my debt and here is the following scenarios. Please inform me or direct me to the best avenue.

Approximately $35,000 in debt.(combination of student loans, credit card, and car note)


1) use consumer credit counseling or any other debt managment program

2) use MS Money 2001 Deluxe, which I currently own, to do it myself.

3) declare bankruptcy and wait 10 years

4) use a law firm... (credit repair)
http://creditrights.safeserver.com/ac/home.html?id=ycm

5) Invest in the market and hope to get a huge return and use that ot offset the payments.


Note: I am also looking to buy a home within the next year, so anything that will help me get good credit rating before the home purchase.


thanks. Alot
Print the post Back To Top
No. of Recommendations: 1
I choose number two. That law firm can't do anything for you that you can't do for yourself. And their big, fat fee can go towards debt repayment and down payment for a house.

Good luck!
t.
Print the post Back To Top
No. of Recommendations: 0
Note: I am also looking to buy a home within the next year, so anything that will help me get good credit rating before the home purchase.

I would get the credit cards paid off before trying to get a home loan; the car loan and student loans probably won't look that bad. Most of us here think you should do it yourself, not use a debt management program that takes your money. your step 5 would be frivolous. Foolishness says not to put money in the market that you will need within 5 years.

ishtar


Print the post Back To Top
No. of Recommendations: 2
I am trying to reduce my debt and here is the following scenarios. Please inform me or direct me to the best avenue.

Two, pay off the debt and don't bother with the other gyrations.

Bret
Print the post Back To Top
No. of Recommendations: 8
I looked at the "Law Firm"'s web site, and laughed out loud! It was most definately written by a lawyer. Note that throughout the entire site they never once mention that they can have accurate negative information removed. Why? Because if you dispute a mountain of correct negative data, the credit reporting agency is (under the FCRA) not even required to send you a form letter telling you go away. In any case, disputing accurate negative information means you are shirking responsibility for screwups on your part, and that isn't what the FCRA was created for.

What happens if you try and pull a fast one on them and dispute accurate information anyway? Their "warranty" dissappears into thin air since you didn't accurately describe the items. They want to know if a particular piece of information is "inaccurate, obsolete, or unverifyable" before beginning the dispute process. But whoops! if it is inaccurate or obsolete, you certianly don't need a law firm to tell the CRA that, you can do that on a CRA's 800 number just as effectively. And if the CRA comes back verifying your info, whoops! turns out you were wrong, and it was verifyable after all!

Their statistics for success were also quite hilarious: At the end of nine months an average of "29.8 deletions" was achieved! You need serious help if you have ten delinquent accounts on each of your three credit reports. Are they trying to tell us that an average customer is such a deadbeat that they have ten dead accounts? *cough* B$ *cough*.

They also neglect to mention that pulling credit reports every three months for a year is going to cost you another $125. Oops. If you want to contact them by phone, that will set you back $50/hr. What else do you do when they ignore your e-mail?

In their FAQ they tell you that other "credit repair" companies are just out to either take your money, or do the same thing that the "law firm" does, only ineptly. But they will do better, because they are such great legal eagles! Really! Trust us! :-) This crap reminds me of the ads for diet pills in Parade magazine (The ads in that publication are consistently hilarious and the only reason it doesn't go straight into the recycle bin. That and the morons that ask Marilyn whats-her-face for manners and relationship advice.) In those ads they invariably mention that "other" diet remedies are scandalous crap, but these pills are guaranteed to work! Really! Trust us!

Notably absent from that web site is useful information as to where the lawyers are actually licensed to practice law, if anywhere.

BTW, to answer your question, try (2), followed by (1). (3) is a last resort, and (4) and (5) are a baaaaaddddd ideas.

SirWired
Print the post Back To Top
No. of Recommendations: 2
LOL!!! Is this guy still pushing those legal-services MLM gigs???

Check him out on "Financial Scams" board

http://leviticus.boards.fool.com/Message.asp?mid=15272832

Kris
(sorry but I had to do it!)
Print the post Back To Top
No. of Recommendations: 0
LOL!!! Is this guy still pushing those legal-services MLM gigs???

Hey,

I'll bet WildGirl could use a prepaid legal service.

She seems to spend a fortune on lawyers. ;-)

Bret
Print the post Back To Top
No. of Recommendations: 0
a) how much of that is CC and how much is car and how much is student loan?
b) what is your credit rating right now?
c) bankruptcy doesn't clear student loans (to my knowledge anyway)
d) if your credit rating stinks now, 1 year isn't going to put you in a house -- filing bankruptcy will prevent a home purchase for 10 years
e) the LBYM mantra: stop using the CC's, start following a budget, ditch unnecessary expenses (like cable and cell phone), pay your debts off (especially the cc and car), pay on time and your credit will improve.
Print the post Back To Top
No. of Recommendations: 0
Oops, sorry, forgot which board I was on...that last line should say "the mantra of the Credit Card Board"......
Print the post Back To Top
No. of Recommendations: 0
Buy a house now, wait a year and take a 175% HEL to pay off the debt.




Just kidding - #2 works well for me.
Print the post Back To Top
No. of Recommendations: 0
Buy a house now, wait a year and take a 175% HEL to pay off the debt.

******
BWAHAHAHAHAHAHAHAHA!

Dang....the Humor/Urban Legends Board isn't the only place where folks need to post "spew alerts"! (As in, make sure you're done taking that sip of soda before reading this.)

- Kilbia
Print the post Back To Top
No. of Recommendations: 1
<<5) Invest in the market and hope to get a huge return and use that ot offset the payments.


Note: I am also looking to buy a home within the next year, so anything that will help me get good credit rating before the home purchase.>>

#5 is the only choice where you actually address PAYING down the debt. Casinos are more fun, though, and they have free drinks.

Seriously, is your debt a spending or income (lack of) issue? Have you tracked down and planned your expenses with budgeting? What number option is that?

If you are planning to buy a house in the next year and have $35K in debt this year, where is the down payment going to come from? And please don't get the house thinking of all the glorious interest you get to write off on your taxes. With no or little down payment that wonderful write-off will be a staple on you tax return for sometime.

I think you need to look at your debt in a different light.

Fred
Print the post Back To Top
No. of Recommendations: 0
a) how much of that is CC and how much is car and how much is student loan?

Yes, this is an important question - along with "are you able to pay all your bills comfortably now"? I wouldn't sweat the car or the SL, unless you have no money to live on, since both of those debts are fixed, and will eventually be paid off. I'd focus on the CCs and stop spending on those. The CCs are your only variable debt.

b) what is your credit rating right now?

Good question.

c) bankruptcy doesn't clear student loans (to my knowledge anyway)

You're right. They are nearly impossible to get included in a BK discharge. If you're having trouble paying the SL, put them under a hardship forbearance immediately or transfer them to Direct Loans to take advantage of the lower interest rate and a general forbearance option.

d) if your credit rating stinks now, 1 year isn't going to put you in a house

This is true.

-- filing bankruptcy will prevent a home purchase for 10 years

This is not true. Two years of perfect payments on the credit report will qualify this person for an FHA loan, BK or not.

e) the LBYM mantra: stop using the CC's, start following a budget, ditch unnecessary expenses (like cable and cell phone), pay
your debts off (especially the cc and car), pay on time and your credit will improve.


Agreed.


Print the post Back To Top
No. of Recommendations: 1
If you have the money to pay your bills, choose option number two and stay with it.

If you are short on money, choose the consumer credit counseling option and begin lbym in earnest.



Print the post Back To Top
No. of Recommendations: 2
"5) Invest in the market and hope to get a huge return and use that ot offset the payments."

If you use that motivation for investing in the market you would be better off going to the casino. At least there you will get free drinks, a nice floor show, and know that they're going to take your money.
Print the post Back To Top