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debt-free and other companies, do these work ?

Discussion in 'The Lounge' started by R72K5, Nov 26, 2003.

  1. R72K5

    R72K5 Banned

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    these companies that have been advertising that they can combine your debts into one payment a month and take care of late payment fees and such, has anyone tried any of these, are they any good ?

    lets say that a young bachelor who is out of work still- for over a year now- has a debt of 2000 to one place and 1200 to another- both owed to credit services- would one of these debt companies be any help at all?


    thanks
     
  2. Skigirl

    Skigirl 1/2 ton status

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    I have a friend that is a negotiator for one of them. She told me that what those types of companies don't tell you is that the process will damage your credit - apparently pretty severely. $3200 of debt isn't worth the damage in most cases.

    There are always ways to make money as a young guy, even if unemployed.
     
  3. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    [ QUOTE ]
    these companies that have been advertising that they can combine your debts into one payment a month and take care of late payment fees and such, has anyone tried any of these, are they any good ?

    lets say that a young bachelor who is out of work still- for over a year now- has a debt of 2000 to one place and 1200 to another- both owed to credit services- would one of these debt companies be any help at all?


    thanks

    [/ QUOTE ]

    I called Amer-debt about 2 years ago and they told me they wouldn't help me unless I had at least $2000 in debt to start. Next they wanted me to get all of my debt rounded up oneway or another and send it to them. They told me that they would not negotiate anything, but simply add up all of my debt and find out how much I could afford to send them each month. They would take what payment I sent them each month and divide it up between all of my account. i.e. if I paid $100 and had 25 open accts, they would pay each company apprx $4. Also they were/are a free counseling company that excepts donations rather then paymant. Now when I told them I owed a little over $131,000 in debt they told me (off the record) that I should seek an Attorney.

    All in all I was less then pleased with what they had to offer. It took me 14 months to become debt free on my own with no help from anybody except a little studying and alot of typing.

    $3200 is not that bad at all as far as debt is concerned. If you really want to get rid of these debts without having to pay any extra money then need be, well this is what you do. First of all you get your credit report to find out exactally what is on there. Next everything that is a debt you send a "dispute letter" for each and every debt on there to all 3 credit bureaus. Basically stateing that you want proof of these debts and that you demand they be investigated for fear of fraud and that they be removed from your credit. Do this about every 30days for about 4 months. Items will start dropping like flies, its really amazing. After about 4 months of this you can do 2 things. One you can continue with the dispute letters and hope that the debts drop off (there is a good chance they will) or contact the credit companys that reported you to the credit bureaus and see what kind of deal they can do for you. Once you start disputing these debts, the companies are required to send statements of these debts. (You will then have full knowledge of the debt and who to contact.) When they send you these statements you simply reply back to them acknowledging that you recieved their letter and ask that they stop contacting you unless they send you proof that they have registered in your state to conduct business. Also state that if they do not have the proof, that they must notify any and all credit bureaus of this and to have whatever hearsay debt removed from your credit or you will have no other choice but to sue them. (nothing like taking a credit company to small claims court and them not showing up, causeing you to win a $1000 judgement against them in your favor).
    Now if you come to the conclusion that you owe (never ever ever admit that you owe a debt) this debt and just want to get rid of it after fighting for a year, then offer them a dime on the dollar of what you owe. Not many people realize this, but it is as easy as dealing with a car salesman. i.e. I had 2 repo with judgments on my credit adding close to $11,000. I dealt with the creditor to the point that I only had to pay just under $3000 to get them to show that they were both paid off. I then disputed to the credit bureaus and they eventually dropped the judgements off of my credit. If you owe them $1000 then offer them a $100 and go from there.


    Ok.. I'll quit typing now. I just realized I was going on and on. If you need any advice let me know, I'll help you out. I'm working on my brothers credit right know and so far I've knocked off a little more then $10,000 in debt without costing him a dime.(well except stamps and a credit report)
     
  4. LKJR

    LKJR 1/2 ton status

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    wow this is good stuff...who do you recommend to get a credit report from?
     
  5. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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  6. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    Re: debt-free and other companies, do these work ? *DELETED*

    Post deleted by 4GUNZ4X4Z

    I had copies of dispute letters up. If you need any pm me.
     
  7. thatK30guy

    thatK30guy 1 ton status Premium Member

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    [ QUOTE ]
    All in all I was less then pleased with what they had to offer. It took me 14 months to become debt free on my own with no help from anybody except a little studying and alot of typing.

    [/ QUOTE ]

    Hmmmmmm.... /forums/images/graemlins/thinking.gif

    I've got debts of a mortgage, 3 credit cards, 1 car, and pretty soon doctor bills for our newborn coming Dec. 2nd. Everything is under $50K, but what do you recommend to get this paid off faster? I doubt I could do anything about the mortgage and car, but the doctor bills and CC's suck for sure. /forums/images/graemlins/tongue.gif /forums/images/graemlins/thinking.gif
     
  8. mudjunkie 82

    mudjunkie 82 1 ton status GMOTM Winner

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    Most places will work with you if you are having problems paying.I would call them and explain your Situation with them and maybe they will work with you.Good luck and hope all goes well for you
     
  9. big pappa b

    big pappa b 3/4 ton status

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    About 5 years ago my now EX wife ran up credit card bills from the damn casinos ($25,000) Worst part was she got credit cards in my name and I didn't even know about it. She was having statements sent to her work so I couldn't find out about them. Anyway, I called one of the debt consolidation companies to find a way out of this. They knocked all the interest rates to about 6% and I could no longer use the cards. Even with this my minimum payments were still over $600 a month and I would have been paying this for years. Since this was a bad mark on my credit anyway, I spent $500 and filed bankruptcy...NO MORE DEBT.
    My credit has improved since then and I'm a happy camper. In fact, about 6 months after I filed the bankruptcy I got a pre approved CC card with a $5000 limit /forums/images/graemlins/cool.gif
     
  10. Waxer

    Waxer 1/2 ton status Author

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    [ QUOTE ]


    There are always ways to make money as a young guy, even if unemployed.

    [/ QUOTE ]

    That sounds pretty freaky? Are you suggesting that guys like me become a man of the street? /forums/images/graemlins/smile.gif
     
  11. 75-K5

    75-K5 3/4 ton status

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    One thing that bothers me about this "get out of debt free" idea is its dishonesty. If you (no one in particular) know all the debts you owe are legitimate debts for things you bought, how would you think it is right to basically trick the crediting companies into erasing the debt. That is simply not accepting responsibility for your actions and spending habits. If you owe $10,000, find a way to pay that $10,000. Trying to erase that much debt with say $1,000 is ridiculous. Why should the credit card companies and other institutions get the short end of the stick when you have racked up countless bills and failed to pay them? Yes I know you could say oh they're money stealing bastards and they're only out to screw the consumer, but that doesn't make up for the fact that you should be held accountable for spending money that you didn't have.
     
  12. Waxer

    Waxer 1/2 ton status Author

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    What you are saying is true, and I agree with most of it. However, lets use myself as an example here.

    I owed BofA money, years ago, way back in 1994 for the amount of $500. At the time, there was no way I had the money, so it ended up going onto my credit report.

    I was 19, and didn't really care about my credit at the time.

    Well years go by and BofA charges off the account for $500. Which means they took it as a loss and got a tax break for it at the end of the year.

    So collection agency A, purchases the debt from BofA for pennies on the dollar. They tack on their own fee's to it... and keep on adding their fee's, and keep on adding. The bill is now over $1000.00 for something that originally was $500. The reported loss on my credit by BofA was $500.

    Why would I want to pay over a thousand dollars to a company that I signed no contract with? They purchased it for pennies on the dollar and say that they will accept no less than the full amount.

    To me that is pure BS. I have no problem in paying the original debt, but I'm not going to pay the BS fee's added on by this collection agency. They are trying to make money from my situation years and years ago.

    So in this particular situation, I have no problem whatsoever using these tactics to get rid of it. As I can't even pay BofA if I wanted to now, since they already charged it off.

    Now on the other hand, I have a credit cart account that I owe on, and do plan on fully paying that back. I will not use this dispute method to "get rid of it".

    There are definitely ethics involved, and I do believe that it speaks for ones integrity to try and erase valid debt. But it also speaks on the ethics of the collection agency for trying to weasle money out of me that I do not owe them.

    I have sent letters asking for proof that I owe them the money, and they have ignored my letters. Now its time to dispute the thing away.
     
  13. Skigirl

    Skigirl 1/2 ton status

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    Well, maybe not you Steve.... /forums/images/graemlins/rotfl.gif
     
  14. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    [ QUOTE ]
    One thing that bothers me about this "get out of debt free" idea is its dishonesty. If you (no one in particular) know all the debts you owe are legitimate debts for things you bought, how would you think it is right to basically trick the crediting companies into erasing the debt. That is simply not accepting responsibility for your actions and spending habits. If you owe $10,000, find a way to pay that $10,000. Trying to erase that much debt with say $1,000 is ridiculous. Why should the credit card companies and other institutions get the short end of the stick when you have racked up countless bills and failed to pay them? Yes I know you could say oh they're money stealing bastards and they're only out to screw the consumer, but that doesn't make up for the fact that you should be held accountable for spending money that you didn't have.

    [/ QUOTE ]

    I guess I could of filled bankruptcy for a few hundred dollars.

    In general, it just flat out pissed me off when I had 4-5 different credit companys on my credit report saying that I owed all of them for the same acct that was years prior and for double the cost. Why should I pay 5 guys instead of the original debtor (1 guy) and for twice the price? Me personally I just wanted to repair my credit. That "Get out of Debt free" is merely an advertising approach.
     
  15. 75-K5

    75-K5 3/4 ton status

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    Yes, I agree you shouldn't have to pay double what you borrowed after only a year or two, especially for an amount as small as $500. There is such a thing as interest, but that is ridiculous. I'll back you up on that one.
     
  16. R72K5

    R72K5 Banned

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    [ QUOTE ]
    [ QUOTE ]


    There are always ways to make money as a young guy, even if unemployed.

    [/ QUOTE ]

    That sounds pretty freaky? Are you suggesting that guys like me become a man of the street? /forums/images/graemlins/smile.gif





    [/ QUOTE ]

    thats what it sounds like to me,

    not enough population around here fo rthat


    3200 debt is a TON if you are unemployed

    i have no way to get this paid off anytime soon, i probably never will be able to ever with the way things are looking,

    good information posted here, i need to read closely,

    im not sure what im gonna be able to do, sounds like debt free company is not the way to go then hmm

    thanks
     
  17. jjlaughner

    jjlaughner 3/4 ton status

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    [ QUOTE ]
    3200 debt is a TON if you are unemployed


    [/ QUOTE ]


    /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif
    hahahahahahahaha
    did I mention
    /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif

    DROP IN THE BUCKET MY FRIEND! /forums/images/graemlins/deal.gif
    try 30K from school and double you CC amount /forums/images/graemlins/ignore.gif

    We had a house that we hoped would sell at the being of the summer so I used the CC to buy a lift some other parts /forums/images/graemlins/tongue.gif NOPE, didn't sell the house yet so no $$$. Also have not been able to find a job either. And its snowing outside and the plow truck still does not run. /forums/images/graemlins/rolleyes.gif
     
  18. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    To all those that sent me PM's and e-mails, bare with me. I didn't expect so many. Oh and make sure you use your name not mine... lol. Just had to through that in there. /forums/images/graemlins/thumb.gif

    Michael
     
  19. tecton

    tecton 1/2 ton status

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    i thought if you filed bankruptcy it messed up your credit

    Note: FREE credit reports.com charges $34.95
     

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