The Student Loan Ranger's Mailbag Express: Consolidation and Repayment U.S. News & World Report (blog)
Another month, another payment closer to loan forgiveness for the Student Loan Ranger. That's right: We don't just talk the talk; we walk the walk and we pay the debt.
Onto the Mailbag Express: As always, our responses are not meant to provide specific legal or financial advice. Your situation is unique, and we encourage you to reflect carefully on your options and to consult a financial adviser.
Dear Student Loan Ranger: I just observed your student loan webinar, but I wasn't able to access it until 15 minutes after the start time. Did you say that in order to use Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF), you must first consolidate Stafford and Grad PLUS loans into one loan? If they are Federal Direct, isn't it better to keep them separate as they have different interest rates? Great webinar, by the way—I feel a bit better about managing my student loans.
Dear Latecomer: I'm glad you found the webinar useful! You do not need to consolidate as long as your Stafford and Grad PLUS are indeed Federal Direct loans. If they are FFEL loans, however, they are not eligible for PSLF and you will want to consolidate them into a Federal Direct Consolidation Loan. (You have a right to consolidate them for that purpose.) If you don't know which type of loans you have, you can find out by signing into the National Student Loan Data System .
Debt Relief Counseling - Industry Expert Interview
htttp://thedebt-relief.com - Debt Relief Loan interview with Michael Riley, the industry expert and CEO of Debt Management Solutions. Contact this ...
I have about 12000 credit card debt. What's the best debt consolidation, redcution service around? Thanks?
I have built up about 12000 dollars of debt between the period of college graducation til I found my job about 1.5 years later. Right now since I have pretty stable income, I would like to deal with my debts asap. I am looking for a good debt consolidation/reduction service asap. I have been checking around, there are too many options online. Are they all legit? or There are certain ones would fit my need the best? Thank you. If you have the same experience as me, please share the info so I can go debt free asap!
I used consolidated credit counseling service, and I paid my debt with 2 years (I had a $10,000 debt back then). I am using them again now (debt amassed from using credit cards for school). I put in my info online last night, and by 9am this morning one of the counselors called me to get me set up.
here's their website http://www.consolidatedcredit.org
and they are in the better business bureau registry
Dave Ramsey's "Financial Peace University" program teaches skills for managing your finances and reducing/eliminating debt. The classes are taught in churches usually and are quite reasonably priced.
Are Debt Consolidation Agency's a good idea to help lower debt?
Between my husband and i we have about 12 credit cards. I know, i know we shouldn't have gotten ourselves in this mess to begin with.
We are 22 years old, I have a steady well paying job and he is in the military. We do not have creditors calling yet, but we are struggling to pay the minimum payments. 1 of his credit cards did get recently charged off.
I tried shopping for Debt Consolidation Agency's and the one i looked into was going to charge us a $2,750 service fee! Is this normal?
Our total debt in Credit Cards alone is appox. $18,000 (not including car payments, household bills etc.)
HELP!!! If not a Debt Consolidation Agency, then what? And if i go with a Consolidation Agency will it affect my credit?
You don't have to go to a debt consolidation agency. You can try one of the banks or financial service companies too.
There is one company out there that analyzes your debt and see if you qualify to consolidate through them for free. If you qualify with them, the cost to consolidate or refinance is included with the loan. When you consolidate your debt into one monthly payment, usually the monthly payment is lower. This means, you saved some money.
But the company doesn't stop there. They show you how to get smart with the savings. They use some of your saving and apply it to the principal and the rest of your savings is invested in mutual funds. By adding more principal to the payment, this will get you out of debt sooner. The program has a free bi-weekly payment option as well. Paying bi-weekly will get you out of debt even sooner than just paying monthly.
Fees associated with consolidating debt or refinancing usually cost a couple thousand dollars. There is so much fees involved to do it. Its like you buying your first home and there are fees involved in getting that mortgage.
Go to a credit counselor who doesn't want to sell you anything for assistance in dealing with debt.
they are debt CON-solidation agencies for a reason. the can mess up your credit even more. it's better for you and hubby to sit down together and write down a payment plan on how you are going to pay your bills. the 2,700 you spend with an agency can be applied toward your debt.
http://www.too-many-debts.com
It's working wonders for my husband and I.
Credit Card Debt Question?
HI currently have about $30,000 in credit card debt between 7 different cards. I make slightly more than the minimum payments every month, which total around $1,000 a month. This eats up half my income. I have never been late on a payment, ever. Does it make sense for me to seek some kind of debt consolidation or debt counseling service to negotiate with my credit card companies? on the one hand, the payments i make every month is killing half my income.
On the other hand, even though i owe so much, my credit is pretty decent since i have never been late, and i am concerned about my credit being trashed if i try to council my way out of it
any guidance would be helpful
thanks
Si what if you can't buy "stuff" for awhile just throw EVERYTHING you can at the debt. Dave Ramsey is a fool to tell people to pay a lower balance account so you can "Feel Good", attack the one with the highest interest first that way you do not throw away money even if it is only a few dollars a month that you have to tackle the debt.
Next get a second job for 6 months and put every dime you make and have to spare toward the debt.
Get rid of your cell phone and cable for awhile, stop going out do anything to get rid of the debt then you can turne the cable and cellphone back on.
Good luck oh and pay the debt and on time yourself FORGET any kind of consolidation/repair services.
If they lower your rates, more of what you pay would go to reducing the total debt rather than interest. One strategy which may help is to volunteer for automatic withdrawal from your checking account. Set an amount of what you can afford but higher than the minimum. If they know for sure they're getting paid they may be more likely to lower your rate. They like the interest, but they don't want to charge off a large amount if you default.
Some debt programs will ding your credit, it's wise to check.
One strategy I used to clear our credit cards is I signed up for online bill pay through my bank. It was free and there's no limit on the number of transactions so every week I made a payment to each of the cards. Even if it was only a few dollars, every paycheck something went towards the bills (over the minimum) every week. When one card was paid off I added that amount to the next card payment. It added up fast.
Good luck. It takes time but it will be well worth it.
Try a debt snowball paying the minimum on all the cards except the one with the lowest balance. Take the extra and put it into that one card when you are done with that move on to the next one with the lowest balance. Ignore the interest rate if you are going to try this method.
Also build an emergency fund try and have at least one months expenses in it. To be used only in a true emergency. Such as car needs repairs or you are sick and unable to work.
There are some excellent websites out there with good information. getrichslowly.org is one of my favorites. Dave Ramsey is another popular one.
Either deal with it today, or bury your head in the sand till later.
You can't make miracles with that kind of income; and still have decent credit.
First option is to get a more rewarding job, or at least make an effort to qualify for a better one.
Keep in mind that negotiations with card companies won't take place unless you're several months late. Debt consolidation will get you through the honest way. And if you don't care, there's always BK.
BK will put your feet on the ground, afterwards, you won't spend what you can't afford.
debt consolidation?
i am about 2,000 in debt and i also have $300 car payments that make it difficult for me to pay the rest of my bills. my bills have gone to collections and although they are only $200-400 for 3 cards and 1,000 for another...creditors are demanding that i make payments in full or divide it in half and pay between 2 months. i know that i have made poor decisions but i would like to take care of this before it gets any worse. i contacted a debt consolidator and he told me that although they normally require 2500 in debt he would be able to help me with the approval of his supervisor, he also told me that he could probably get my payments back to their minimums. but what i'm not sure of is whats in it for the consolidators? how much am i going to have to pay them for this service? he said it would be about a $40 activation, but i'm sure they must make more than that, is it going to make everything worse in the end?
You could try to negotiate with the creditors on your own, but debt consolidators usually do much better - they can sometimes reduce the debt by up to 75% if your debts have already been turned over to collection agencies.
Some loan consolidators will try to charge you fees to cover their time and expenses. Others negotiate deals with collection agencies so that they take a cut of the agencies' profit on each settlement.
One debt management site I know of that offers free debt analysis and free credit repair consultations is:
http://www.mortgageous.com/debt-consolidation
I would shop around and talk to multiple debt management and consolidation firms. They're competing for your business, so see who can get you the best deal.
.
How do you report unsolicited phone calls even though I have been on the donotcall.gov list for over a year?
This month, April 2008, I started receiving numerous calls from satellite tv vendors and debt consolidators. The calls are recordings requiring you to press "1" to talk to someone. I pressed "1" and immediately asked, "What company is this?"
and the person immediately disconnected the call. This happened twice. I have never signed up for any satellite tv related products nor any debt consolidation services. These calls are obviously scams, but how do you report, when they don't give you a name and hang up before you can ask them anything else?
You can file your complaints here:
https://www.donotcall.gov/complaint/complaintcheck.aspx
Does yahoo watch for them and block them or something?
Are these scams too??
i asked about car title loan places and i get these, whats up for real w/ them?
Hello I am Mark Maxine by name, the (MD) of Mark loans venture i am a Reputable, Legitimate an accredited money Lender.I give out loans to Individual and companies in need of financial assistance.Do you have a bad credit or are you in need of money to pay bills? You can use this medium to solve all your problems as i render reliable beneficiary assistance and will be glad to offer you a loan at 3% interest rate. Services Rendered include: *Refinance *Home Improvement *Inventor Loans *Auto Loans *Debt Consolidation *Horse Loans *Line of Credit *Second Mortgage *Business Loans *Personal Loans *International Loans Please write back if interested. Upon Response, you'll be mailed a Loan application form to fill. (No social security and no credit check, 100% Guaranteed!) I Look forward permitting me to be of service to you. You reach us via e-mail:mark_maxine700@yahoo.com
7 hours ago
Choose as Best Answer
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by Frank Petti Member since:
August 13, 2008
Total points:
137 (Level 1)
Add to My Contacts
Block User
Hello,
I am Frank Petti by name, the C E O of Petti Micro finance, i am a Reputable, Legitimate & an accredited money Lender.I give out loans to individuals and companies in need of financial assistance.Do you have a bad credit or are you in need of money to pay bills?
You can use this medium to solve all your problems as i render reliable beneficiary assistance and will be glad to offer you a loan at 5% interest rate.
Services Rendered include:
*Refinance
*Home Improvement
*Inventor Loans
*Auto Loans
*Debt Consolidation
*House Loans
*Line of Credit
*Second Mortgage
*Business Loans
*Personal Loans
*International Loans
Please write back if interested.
Upon Response, you'll be mailed a Loan application form to fill.
(No social security and no credit check, 100% Guarantee!)
I Look forward permitting me to be of service to you.
You reach us via e-mail:info@pettimicrogroup.co.cc
office number, 00233-28-52-52-676,
(C E O) Tel-+233-24-82-40-801,
Fax-00233-217-134-43,
5 hours ago
17 minutes ago - 3 days left to answer.
Additional Details
1 second ago
thanks guys! i kinda figured but you know, desperate times....how sad they prey on down and out people!
It's called spam. They target you because you made a query about money, and accepted a cookie that identified you. Now you're on their list, and it costs a thousandth of a cent to send you a message, so if they receive .01% responses, they're ahead of the game.
I would never use the services of someone who spammed me.
You can get a free response address to report these messages to at spamcop.net
are these scams too??
i asked about car title loan places and i get these, whats up for real w/ them?
Hello I am Mark Maxine by name, the (MD) of Mark loans venture i am a Reputable, Legitimate an accredited money Lender.I give out loans to Individual and companies in need of financial assistance.Do you have a bad credit or are you in need of money to pay bills? You can use this medium to solve all your problems as i render reliable beneficiary assistance and will be glad to offer you a loan at 3% interest rate. Services Rendered include: *Refinance *Home Improvement *Inventor Loans *Auto Loans *Debt Consolidation *Horse Loans *Line of Credit *Second Mortgage *Business Loans *Personal Loans *International Loans Please write back if interested. Upon Response, you'll be mailed a Loan application form to fill. (No social security and no credit check, 100% Guaranteed!) I Look forward permitting me to be of service to you. You reach us via e-mail:mark_maxine700@yahoo.com
7 hours ago
Choose as Best Answer
0 Rating: Good Answer 0 Rating: Bad Answer Report Abuse
by Frank Petti Member since:
August 13, 2008
Total points:
137 (Level 1)
Add to My Contacts
Block User
Hello,
I am Frank Petti by name, the C E O of Petti Micro finance, i am a Reputable, Legitimate & an accredited money Lender.I give out loans to individuals and companies in need of financial assistance.Do you have a bad credit or are you in need of money to pay bills?
You can use this medium to solve all your problems as i render reliable beneficiary assistance and will be glad to offer you a loan at 5% interest rate.
Services Rendered include:
*Refinance
*Home Improvement
*Inventor Loans
*Auto Loans
*Debt Consolidation
*House Loans
*Line of Credit
*Second Mortgage
*Business Loans
*Personal Loans
*International Loans
Please write back if interested.
Upon Response, you'll be mailed a Loan application form to fill.
(No social security and no credit check, 100% Guarantee!)
I Look forward permitting me to be of service to you.
You reach us via e-mail:info@pettimicrogroup.co.cc
office number, 00233-28-52-52-676,
(C E O) Tel-+233-24-82-40-801,
Fax-00233-217-134-43,
5 hours ago
thanks guys! i kinda figured but you know, desperate times....how sad they prey on down and out people!
Yes...all are scams. Here are some red flags:
1. Lenders do not have private e-mail addresses such as yahoo or msn.
2. Frank Petti's profile states he's been a member since 8/08.
3. All 3 offers are almost carbon copies of each other. These scammers have no imagination, but if it ain't broke don't fix it.
4. Lenders rarely ever lend outside their country.
5. All are offering rates without looking at your credit history.
6. The rates are too good to be true
Cut and paste each one and place on Scamomatic.com. This site will give you a message in less than 1 minute regarding wether e-mail is a scam or not. You will also need to cut and paste e-mail address and the site will also let you know if the party is a known scammer.
Good luck
Considering Filing for Bankruptcy in Virginia?
I have recently lost my job after being in the telecommunications industry for ten years. I have had no luck finding a new 9-5 job with a regular salary. I have been forced to take a job full time at a restaurant.
I have over $29,000 in credit card debt most with APR's in the high 20's. I have done my best over the last 6 months to keep up with my minimum payments but am finding it impossible recently to balance my debt along with my living expenses. By living expense, I do mean the bare minimums. Rent,utilities, gas, food etc.. I have not wasted funds on entertainment or purchases other than does required for work.
I had an hour long conversation today with a debt consolidation company. It is has been in business since 1965 and is non-profit. I actually used their services in the past to consolidate debt that I managed to pay off about 8 years ago. They analyzed all of my assets, income, debt and overall financial situation. They determined that I was running at a 65% deficit between what I am brining in and what I owe. They recommended that, although it may sound harsh, my best option was to file for bankruptcy. They determined that I would not be able to keep up with any type of repayment schedule that they would negotiate with the banks and that a fresh start may be my best option.
I have avoided the thought of filing for bankruptcy in the past for several reasons. But now that my income is at an all time low and my job prospects do not seem to be sorting themselves out in the near future, I do not now what other options I have available to me. Needless to say, the stress of the whole situation has been making life extremely unpleasant.
I am single, have no kids, and will not be purchasing a house in the near future. The only asset I own, is an 8 year old car.
I have five questions:
1) Other than having a bankruptcy ruling on my file for the next ten years and not being able to secure credit, what are the other disadvantages of filing for bankruptcy?
2) I do not have disposable income. I am making enough to pay for essentials. Would my chances of having the entire debt excused be good? Or would I still be responsible for paying a percentage?
3) I know from my corporate experience that my credit file would be reviewed during the job applications process. I am considering a career with the Federal Government. How would a bankruptcy ruling be looked upon by the government during the job application process?
4) How much with a reputable bankruptcy lawyer cost me?
5) I have also read that another option is to do nothing and ignore my creditors. The following excerpt below is from http://bankruptcy.findlaw.com/ . Is this plausible?
Do Nothing
Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you're living simply, with little income and property, and look forward to a similar life in the future, you may be what's known as "judgment proof." This means that anyone who sues you and obtains a court judgment won't be able to collect from you simply because you don't have anything they can legally take. (As a famous song of the 1970s said, "freedom's just another word for nothing left to lose.")
Except in unusual situations (being a tax protester or willfully failing to pay child support) you can't be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits.
So, if you don't anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won't sue you, because it's unlikely they could collect the judgment. Instead, they'll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, the debt will become legally uncollectible. And in seven years, the debt will come off your credit record.
I am planning on contacting a bankruptcy lawyer for further advice but wanted to get an idea as to what I am dealing with before I further the process.
I appreciate any feedback the Yahoo community is able to provide!
Thank you in advance!!
Doing nothing is a really bad idea. If you get sued anyway. Do not ignore court papers if a creditor sues you, that is what will get you in trouble.
1 - the only other disadvantage i can think of is that it can adversely effect your ability to get certain types of jobs. You will be able to secure undesirable credit right away though. (reall high interest rates.
2 - Whether you have to file a chapter 13 and pay a percentage of debt depends on the means test, not real expenses, but I'm guessing you probably won't need a chapter 13.
3 - It depends on the job in the government you're looking into. In some positions I don't think it matters, in others it may make the difference because of security clearances.
4 - I don't know what the going rate for bankruptcies is in your neck of the woods, you have to ask the attorneys that do bankruptcy to find that out.
5 - Like I said, doing nothing is a bad idea. It's one thing if they haven't sued you, but once they do (and they do more often than that article makes you think) ignoring the problem doesn't make it go away.
credit card math help comsumer math?
1: With a credit card you are able to receive money, goods, or services in the present, in exchange for a promise to pay in the future.
True
False
2: Minimum payments are a trap; they are often designed so that it takes months or years to pay off the balance.
True
False
3: The adjusted balance is a measure of the cost of credit, expressed as a yearly rate that must be disclosed before you become obligated on the account and on your account statements.
True
False
4: Federal law prohibits issuers from sending you a renewal or substitute card without your request.
True
False
5: Accurate negative information can generally stay on your credit report for seven years, with certain exceptions.
True
False
6: Realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy are all methods of dealing with debt.
True
False
7: Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. (Exempt items would include items such as work-related tools and basic household furnishings.)
True
False
8: In exchange for an up-front fee, companies which guarantee that applicants will get the credit they want-usually a credit card or a personal loan - are always pre-approved by the FTC.
True
False
9: "Dead Man Walking" was an example of companies scamming citizens out of their social security benefits.
True
False
10: Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year.
True
False
Legal action over late credit card payments?
I have several credit cards, all of which are overdue in payments. I joined a consolidation company, but they were charging me a lot of money for their services, and so I discontinued the plan. I owed 2,900 on one card and managed to settle out over six months for 1,033 dollars. However, the second card company (who has received the same erratic payments as the first) has sent my debt to a lawyer. I owe them 3,300 and made my last payment at the end of April. However, when I called the law firm, it seemed sort of shady (for instance, they thought my last name was Miss, not that Miss was the prefix, and their grammar was horrible). I'm not actually convinced that is an actual law firm and not a scare tactic to force me to pay off my entire sum. Please know that I am trying to work with these companies...I am a full time student with a full time job and I can only do so much. Does anyone know what the odds are that they actually are a law firm or if they will actually take me to court?
The odds they will take you to court are very slim, but possible. I hope you've learned your lesson about consolidation companies, stay away from them. If necessary, just concentrate on paying off the one you've made a deal with. The rest will fall into place..
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