Debt Help
Debt Help questions and answers
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Q: Can the 403b plan help me get out of credit card debt?
I am a new teacher in TX and was told that the 403b plan could help me pay off my credit card debt. I was told that the tax taken out of my income could be used to help me pay off my debt if I invest it in the 403b plan. I am clueless about this. Any help is appreciated, thanks in advance.
A: No. You only 'save' tax at your tax margin rate (Your highest rate) on the toal amount put into the 403. So, if you put a $1,000 in you save $360 in taxes. But you have to put in the entire $1,000 so your cash flow is less.
That being said, a 403B is a great way to save, especially if you are young. Sock as much money away as you can. What will it feel like to be millionaire when you retire because you put away $10k a year while working?
Q: How can a person who has bad credit take out a personal loan to help consolidate debt?
Is there any way to take out a personal loan to help consolidate debt when a person has a bad credit score?
A: See a Credit Counselor who will show you the way to be debt-free
Q: Is there a place that provides help for a debt crisis?
I just found out my mother is in debt for some bad checks she bounced a few years back. She owes $2600 by the end of the month or she goes to jail for two years. I'll help as much as I can but I can't do it all. Her credit is horrible so I doubt she can get a loan, and mine isn't that great either. Is there a place where she can get help for something like this. It's not like she fradualantly did this. She's really poor and was doing anything she could to get by, and just happened to have some checks bounce. Any help would be greatly appreciated. Thanks
A: I have seen churches help with similar situations. It will probably be hard to get one to go that high though, especially if they dont know you.
Q: Will closing ym credit cards help me get approved for a debt consolidation loan?
I have tried to get approved for a debt consolidation loan so I could have my credit cards and school loan under one monthly payment rather than juggling several payments but I get denied because I have too much credit in my name right now. If I close all the credit cards will this help me get a loan approved? It would make life so much easier if I just had 1 steady monthly payment.
A: Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loanold loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
Q: I need help with debt, who will approve a Debt Consolidation Loan?
I'm am not very far in debt but need help getting back on my feet. Everytime I apply for a Debt Consolidation Loan I am denied. Who would approve me? Does anyone know.
A: I have been told that banks look at Debt Consolidation Loans as a bankruptcy. They feel that you can not handle your debt alone so you are a big risk. Pick one debt to concentrate on to pay it off. The two different methods are to either pick the highest interest debt or the lowest debt amount. Once you paid off that debt then concentrate on the next debt until it is paid off.
Q: Does going to a credit counseling service really help when in credit card debt?
Are there better routes to go when in credit card debt rather than debt services?
A: "Debt negotiators," posing as non-profit organizations, can ruin your credit even further, advising you not to pay your credit card bills at all. They also charge upfront fees, maintenance fees, and monthly fees, all of which are supposed to be placed in a "trust" account. Then, after many months have passed, debt negotiators finally convince creditors to settle for less money than was owed, making yours an "uncollectible account."
That tactic not only ruins your credit, due to the many "over 90 days late" remarks and collections notations, but all the money you supposedly saved -- which was actually money you owed -- will be considered as income by the IRS! In other words, if you owed $20,000 and settled for $12,000, you'd be required to list the $8,000 difference as income!
Credit repair companies promise to help clear up your credit problems. They write letters to credit bureaus, stating that various listed information is false, so the agencies will remove that information while they investigate your account. During that time, the credit repair company sends you a clean credit report, thereby giving you the false impression that you now have good credit. But after you've paid off the credit repair company, you'll discover that all the negative items will soon reappear on your report. get more information from: http://www.card-gallery.com/
Q: What is the average amount of debt in america. including the people not in debt and the ones in it?Help please
What is the average amount of debt in america. including the people not in debt and the ones in it?
A: Total American household consumer debt averaged $11,840 in 2005
Q: Does paying off collecion debt help increase my credit score?
I have debt in the amount of $7000 that has been sent to collection agencies about three years ago. Two were credit cards, one a cell phone bill.
I desperately need to improve my credit score. Will it help if I start paying this debt to the collection agaencies? I read somewhere that it does not matter whether you pay collection debt off or not since they stay in your credit file for seven years anyways. Is this true? How important is it?
Also, what are other things I should do in order to improve my credit score at this point? At the moment I don't get approved for any credit due to my low score.
Any suggestions really appreciated!!!
A: A collection is a collection, paid or not.
The only way this will help your credit score is if the collection agencies agree to remove the negative entries from your credit report(s).
What happens is that if you pay with out deletion, the date of last activity is renewed when you make the payment. This drops your credit score and restarts the 7 year clock.
Send an offer in writing to pay if they agree to remove the negative entries. If they agree, pay as agreed. If they do not agree, or say they will but refuse to put it in writing, leave the debts alone. Time will remove the negative affect this has on your credit score. Only offer to pay what you can afford in a lump sum, they will not take payments if you are trying to get the entries removed.
Send all correspondence certified return receipt mail and never deal with collection agencies over the phone.
As of today, they stand to fall off your credit reports in 4 years (according to your estimate). Any payments, even partial will restart the 7 year clock, due to new activity. They will then fall off 7 years from the date the payment is reported. Why prolong the damage.
Try applying for Orchard Bank. They are among the best for rebuilding credit.
Q: Are you going to help Hillary Clinton pay off her debt as Obama would like?
Do you agree with Obama here? Should the middle class or poor person reach into their pockets and make themselves even poorer to help replenish the wealthy person's costs? Did we ask Hillary to run and spend her 10 or 20 million?
A: Do you not get this? This is normal procedure. He pays off the debt, in return he is getting her financial backers, her and Bill campaigning for him, and he hopes, some of her 18 million supporters. Nothing out of the norm for this and it is a win-win for both parties involved. ***
Q: Can someone recommend a debt consolidation agency to help me with my credit?
I have a dept of no more than $3K --- should I go to a debt consolidator? If so, please recommend one...
A: No do not get a debt counselor at this point! In many ways it looks like a bankruptcy on your credit report to many creditors. You have several options:
1. Call the credit cards to have your int rate lowered or let them know you will be transfering your balance. (many times they will lower it)
2. If they won't lower it below 5% look online for a different card to transfer the balance onto with no annual fee or balance transfer fees. When the card comes CUT It UP so you won't use it.
3. Go to your local credit union and talk with a loan officer about their loan options to consolidate and pay off your debt. For your best rate and most likely approval route, have some security like a car you have paid off.
Q: I am in debt and need help is anyone out there willing to give me money to get out of debt?
I work very hard, i have a 4 year old son i have lots of debt and just need to get rid of it all. If you are rich or have the money that you won't miss would you be able to give me some to pay off my debt?
A: Are you latin? cause you're embarrassing me with this question!! I hope you're joking!
Q: I need money to pay back debt urgently. Please help me to find a way to do it?
I am in some debt and need to repay it urgently. Can someone suggest a good and decent way to do so. I require the money within a month from now
A: Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:
http://is.gd/7il
Q: If you use credit card consolidation companies to help pay off debt, does this effect your credit rating?
I understand that no new credit lines can be open until debt is pain off using this service.
A: I echo what P S says above, read The Total Money Makeover by Ramsey.
Consolidation companies (most) look like a bankruptcy on your credit report. Also if you don't fix the problem (over spending) consolidation just leads majority of people to get right back into debt via credit cards or the such.
You can do it yourself, you just need a budget and a game plan. Read the above mentioned book and you will be on your way to being debt free!
Q: Should I pay off my debt or start a business? Please Help?
I just got 10,000 from a lawsuit!!...Should I pay off my DEBT, which is 8,000 dollars, which would enable me to have good credit. OR
should I use the 10,000 to start a small business which I know would bring in lots of money then use that to pay off my DEBT? PLEASE HELP.I have only one chance to make the right decision!!
A: if the debt has gone into collections then you can call the collection company and negotiate a lower pay off. Many times they have bought the debt at pennies on the dollar and a lot of the money "owed" are fees that they have tacked onto your debt. Have them fax you an agreement in writing that they will accept a lower payout in exchange for marking the debt paid in full. DO NOT GIVE THEM YOUR ACCOUNT NUMBERS TO PAY OFF THE DEBT. Unscrupulous collection agencies will clean out your account if you do that. Instead negotiate that you will pay them a cashier's check and fedex or overnight express the check to them. Keep copies of any receipts for cashier's checks you send them (photocopy the check before you send it) and then have them send you a letter or receipt stating that the debt has been paid off and you no longer owe them or anyone else money for that account.
if the debt is current then pay half of it if possible and then keep your payments current as you use the remainder of your windfall to start your business. (I would recommend paying 20% of your take home pay monthly to pay off the debt until the debt is gone)
If the debt is several accounts, then pay the smaller ones off completely and the remainder of the debt until you only have 3000 or 4000 left to pay. Then pay 20% of your take home pay to pay off the remaining debt. Use the remaining money to start your business.
Q: Has anyone used CCCS to help them with their debt?
I'm seriously considering it as i cannot survive at all right now and need to sort out my finances. These people sound brilliant and i've already submitted my details and they have devised a budget for me which is great. Wondered if anyone has any experience with them?
A: I haven't had personal experience of CCCS but professionally we refer quite a few people to them for debt help and money advice.
I work for a citizens advice bureau and there are only a few other agencies we refer to when our debt waiting lists are full, they are the CCCS http://www.cccs.co.uk/ and also payplan, a genuine debt management company who provide free help and advice, http://www.payplan.com/
PS. cuffyn is quite right about many companies making money from people in these situations but be assured that CCCS, The Consumer Credit Counselling Service, is a registered charity whose purpose is to assist people who are in financial difficulty by providing FREE, independent, impartial and realistic advice.