Credit card debt

[gozalim]

Why not do a bt for the first 12/18 months and then from there take out a loan

1. can you get 40K+ done with 18/21mo BT?
2. he doesn't see coming up with it in that timeframe

[chbochur]

1. can you get 40K+ done with 18/21mo BT?
2. he doesn't see coming up with it in that timeframe

1. You can get it if done right.
2. So then once the 18 (or even 12 months) are over then apply for a loan

Unless he wants it to be organized and make one payment per month but pay a little more for that...

[gozalim]

1. You can get it if done right.
2. So then once the 18 (or even 12 months) are over then apply for a loan

Unless he wants it to be organized and make one payment per month but pay a little more for that...

1. what would be 'done right'? apply all at once for 3? 5? different cards?
any other suggestions? more detail?

[chbochur]

1. what would be 'done right'? apply all at once for 3? 5? different cards?
any other suggestions? more detail?

You can pm me for details

[Mordyk]

would credit cards agree to a payment plan or settlement if all cards are still current but maxed out and paying minimum?

[ludmila]

would credit cards agree to a payment plan or settlement if all cards are still current but maxed out and paying minimum?

What kind of balances?

[Mordyk]

What kind of balances?

high. $20k range

[LoLo]

20k total or per card?

[ExGingi]

would credit cards agree to a payment plan or settlement if all cards are still current but maxed out and paying minimum?

If they agree, it would probably involve closing the accounts.

[Mordyk]

20k total or per card?

per card on three different cards and banks

[jose34]

personal loan will cost more than balance transfer - assuming the bill is paid in full by the end of the interest-free period.
Balance transfer shouldn't do too much to your credit, compared to your current situation.

This is not financial advice. Make sure you do your due diligience.

Found this  ; instead of opening up a new thread will ask here.
Wouldn't a personal loan be better since consolidates everything and make a person pay one solid amount while a balance transfer just involves opening up more credit cards which can get a person in trouble?

[TheDroid]

Found this  ; instead of opening up a new thread will ask here.
Wouldn't a personal loan be better since consolidates everything and make a person pay one solid amount while a balance transfer just involves opening up more credit cards which can get a person in trouble?

It depends, but the simplest thing to look for in whatever (loan or credit card) is the goal of having THE LOWEST APR. And if needed to consolidate into one, your goal is to pay the LEAST FEES to transfer or consolidate it.
If it cost too much fees to consolidate, pay the one with the highest APR first.
Also if the lowest APR is still too much to pay, consider compensating it by a little higher APR with longer term.

Having a simple one solid amount is not necessary the best or cost effective way to pay down debt.
But the most important thing is make sure you can pay. Having high debt is one thing, defaulting on debt is a whole different world.

[gozalim]

Having a simple one solid amount is not necessary the best or cost effective way to pay down debt.
But the most important thing is make sure you can pay. Having high debt is one thing, defaulting on debt is a whole different world.

0% APR CC is the mathematical better solution for someone with the self control to make it work.
personal loan is the behaviourally safer way to break bad habits for good ones

[YBER01]

Hi guys,

With all of you knowledgeable people, I hope to gain some clarity.

Sadly, I have accumulated a significant amount of credit card debt that I am currently unable to pay off. I have been making minimum payments and dealing with high interest rates for months now.

I have decided to apply for a personal loan in order to pay off the debt and then repay the loan at a lower interest rate. I applied with Silverlake Funding, but unfortunately, I was declined due to a low credit score and other red flags.

However, they did offer me something called "Debt Modification," which they claim is not bankruptcy or credit counseling.

Essentially, they would consolidate all of my credit card debt into one account, and I would make payments to pay it off over a period of 3-5 years.

I would only need to pay the amount owed without any interest payments, and they would also reduce the total amount owed by a few thousand dollars. The payment would go into a FDIC insured escrow account, to which I would make monthly payments.
Additionally, all of my credit cards would be frozen until the debt is fully paid off.

So, my question to you all is: Is this a common solution for someone who has no other means of paying off their debt? Will this cause the banks to close my accounts (both credit and checking)? Is there anything else I should be aware of?

I would greatly appreciate your input!

[YBER01]

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.

[emmes]

https://www.consumerfinance.gov/ask-cfpb/what-are-debt-settlementdebt-relief-services-and-should-i-use-them-en-1457/

[biobook]

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.

YBER01, I'm sorry that you're going through this now. 

You say that this program is not credit counseling. Have you gone for credit counseling somewhere else?

[JMHO]

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! 

[gozalim]

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! 

are you saying that the program he's being offered, while may or may not be his best/only option, will do some credit damage?

[tov hashem]

are you saying that the program he's being offered, while may or may not be his best/only option, will do some credit damage?

Those programs will hurt your credit, check the link above