Credit card debt

[biobook]

Here are two more pages from that site that might be helpful
https://www.consumerfinance.gov/ask-cfpb/what-do-i-need-to-know-if-im-thinking-about-consolidating-my-credit-card-debt-en-1861/
https://www.consumerfinance.gov/ask-cfpb/what-is-credit-counseling-en-1451/

[dm123]

Kol Hakoavod for reaching out.

Depending on how much debt you're in, is there a close friend or family member that can help you (loan?) before you potentially hurt your credit more? Alos, there are organizations out there, like RSK (/rsk.org/) who may be able to help guide you and help fix other issues that may be hurting you now.

Good luck!

RSK.org

ETA: @YBER01 to echo biobook & JMHO kol hakavod for reaching out and sorry you're going through this.

Someone recently told me about Gemach Chasdei Yosef which may be helpful to you, I have not used it but perhaps someone here knows more about it?

[theblakdavid]

RSK.org

Someone recently told me about Gemach Chasdei Yosef which may be helpful to you, I have not used it but perhaps someone here knows more about it?

I know of them well. They don’t offer much you can’t do yourself , and their fees are quite high.
IMO they shouldn’t call themselves gemach.
Don’t want to publicly post more about a Jewish business

[YitzyS]

I think this topic should be discussed more on DDF. Most are hesitant to discuss this subject openly, but I'm sure there is a lot of information from DDFers that can help others.

Maybe there should be some sort of way to post anonymously. I remember in one thread (I think it was the frum finances thread) where CV volunteered to post any info that was DMed to him. Maybe someone can do that here? (Sorry but I'm too busy to volunteer to do it now.)

[dm123]

I know of them well. They don’t offer much you can’t do yourself , and their fees are quite high.
IMO they shouldn’t call themselves gemach.
Don’t want to publicly post more about a Jewish business

Thanks for responding.

Yes OP can probably call in himself and ask/push the CC's to give him much better rates and a payment plan instead of having to go through an agency who will charge him for it, that's definitely an option he should consider.

I imagine you would also recommend against other debt modification companies?

[dm123]

I think this topic should be discussed more on DDF. Most are hesitant to discuss this subject openly, but I'm sure there is a lot of information from DDFers that can help others.

Maybe there should be some sort of way to post unanimously. I remember in one thread (I think it was the frum finances thread) where CV volunteered to post any info that was DMed to him. Maybe someone can do that here? (Sorry but I'm too busy to volunteer to do it now.)

Great idea

If anyone wants to DM me I can repost here

[Euclid]

CV

new accounts are free too

[dm123]

new accounts are free too

Which new account is he? 

[dm123]

DM me I can repost here

re: cc debt
my experiece: stopped paying all accounts for a few months, missed one payment and next month when payments were double i wan't able to afford paying. after a few months i got offers from the cc company. none of them were good so i kept ignoring, paying only a few accounts. eventually after about 4 or 5 months they sent some accounts to collection. I was able to negotiate with collection and got some pretty good deals. some needed to call a few times but i eventually got all the loans set on 5 year autopayment plans with an apr of 6 percent. those were the accounts with only a few thousand dollars on them. one account with about 10,000 and one account with 13,000 were sent to law firm, not collection. Those i was able to set on a 3 year plan with zero interest. if i can keep up these payments i will have saved tons of money, without using any outside company.
So interest on my biggest accounts went down to zero and on my smaller accounts to 6 percent.

[gozalim]

re: cc debt
my experiece: stopped paying all accounts for a few months, missed one payment and next month when payments were double i wan't able to afford paying. after a few months i got offers from the cc company. none of them were good so i kept ignoring, paying only a few accounts. eventually after about 4 or 5 months they sent some accounts to collection. I was able to negotiate with collection and got some pretty good deals. some needed to call a few times but i eventually got all the loans set on 5 year autopayment plans with an apr of 6 percent. those were the accounts with only a few thousand dollars on them. one account with about 10,000 and one account with 13,000 were sent to law firm, not collection. Those i was able to set on a 3 year plan with zero interest. if i can keep up these payments i will have saved tons of money, without using any outside company.
So interest on my biggest accounts went down to zero and on my smaller accounts to 6 percent.

@ExGingi has told other stories about where negotiation becomes available only once default has begun

[YitzyS]

I have some thoughts on this topic, hopefully I'll have some time later to post. For now, I just want to stress something that I've heard from Rabbi Yisroel Reisman: debt doesn't define you. It's a nisayon, just like every other nisayon. Yes, it can sometimes be daunting and crushing, but it's important to always remember that life will continue, and in a few years you will be able to look back on this era from the outside.

[theblakdavid]

@ExGingi has told other stories about where negotiation becomes available only once default has begun

I personally know of cases that they negotiated without, firsthand. ime most people would rather miss then call up, then the creditors get nervous so they start offering. Noone will offer unless you miss that is true

[zh cohen]

Can anyone help me with the above?

I'm under lots of stress, and would love to get this taken care of before Yom tov.

Thanks.

Please know that many (including myself) have been exactly where you are now. I hope that knowing that others have made it through this makes it that much easier to face.

A few bits of advice;
1 - Avoid making decisions out of panic/stress (as much as possible. I know that this is easier said than done...)

2 - There are a lot of people out there who will try to take advantage of your panic. I don't know anything about the service you mentioned, but many of them make big promises and don't do anything that you can't do yourself. It will take work, but you can learn to do this.

3 - Many people in your situation don't have a clear picture of where their money is going. Just sitting down and making a list of income and expenses will take a major load off of your shoulders. (You can use last month as a starting point). It seems like RSK is one place that might be able to help you with this.

I don't have any major insights into debt relief, but am happy to help in any way I can.

[BCL]

mesila.org

[theyankel]

try starting with paying down the highest rate card as much as possible more than the min. dont use that card for more purchases etc. make sure to at least make min payments monthly on all cards if possible to avoid more cards going into higher/default apr
also call the creditors direct and see what they can offer in terms of lowering apr (for sure on accounts that are in good standing). i have had success with lowering apr just by calling and asking

[cozmohoot]

How about a real gemach that will loan you money if you have cosigners etc..

[jye]

Depending on the amount of debt and other factors bankruptcy can be the option that makes the most sense financially.

[Yakov15]

Sounds to me like the Dave Ramsey mehalech would work with this.

[ExGingi]

There have been various ideas brought up here, but that's all they are, ideas. It is impossible to suggest an adequate or workable course of action without knowing specifics (which I don't expect anyone to post online). Depending on specifics, there could be several routes available, each with their own pros and cons.

[YitzyS]

There have been various ideas brought up here, but that's all they are, ideas. It is impossible to suggest an adequate or workable course of action without knowing specifics (which I don't expect anyone to post online). Depending on specifics, there could be several routes available, each with their own pros and cons.

+1. I think the solutions could vary significantly based on how much someone needs to protect their credit score. If you don't need a good credit score, you have a lot more flexibility than if you need a good credit score for something.