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Where do I get money advice?
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I have lots of debt and not sure who I owe or really how much I owe. I have considered all those groups you see and hear about but am not sure what they want. Is there any way to figure who makes a living stricitly off of charging people to help straighten things out and who is funded by credit agencies?

customerjon @gmail.com is where information happens.
Last edited by: Mr. Tibbs: Oct 30, 05 18:55
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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From what I gather, most of them are funded by credit card companies. The CC companies have a vested interest in making sure you don't file for bankruptcy, so they would much rather try and work out some sort of plan to get you to pay in full, albeit over a long period of time, rather than have charge-offs or serious discounts. That's why these agencies are "non-profit", because they make a profit just by making sure you don't file. I don't think you can assume they are working for your best interests.


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Re: Where do I get money advice? [trio_jeepy] [ In reply to ]
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So would a private money guy do buisness with a poor guy?

customerjon @gmail.com is where information happens.
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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Have you gotten a credit report yet? You are entitled one for free each year by law. You can get a more complete report from myfico.com.

I can't remember if the free report lists outstanding debt but I'm pretty sure the complete report does. It's a good idea to check your report anyways because you might have your identity stolen and the report is the only way you will find out before it is too late.
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Re: Where do I get money advice? [Wolfwood] [ In reply to ]
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I got one but I can't read the damned thing.

customerjon @gmail.com is where information happens.
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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www.daveramsey.com


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Yes, I too now have a Blog. Don't laugh.
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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Not a direct answer to your question, but here is the biggest thing that helped me get out of debt a ton quicker than I would have had I not done it.

Pay minimum on all of your payments but one. The one you send your extra money to (even if only an extra 20 bucks a month) is the one with the highest interest. Then, when that one is payed off, you rollover your entire payment to your next highest interest debt.

So, for example you have these debts:
$1000 at 18% (60 dollar minimum)
$1200 at 14% (50 dollar minimum)
$800 at 10% (30 dollar minimum)
You also have an extra $100 a month to spend on them.

Here, you would pay the $60 minimum (because it is on the loan with the highest % interest rate) along with your $100 extra until it is payed off. Then, you would roll the entire $160 into the 14% loan, making your payment for that now $210. After that, you roll it into the 10% loan, making that payment $240.

One other thing that helped was that while the credit card companies were going nuts with 0% credit cards for a full year, I transfered a ton of my debt onto these cards. But I only transfered what I knew I could pay off a few months early as to avoid the huge fees if at the end of the year you still had some debt on the card. After I paid them off, I called in the next day and had them canceled.

Good luck, and take all of the extra coin you can to get out of debt. It is a big relief when it goes away for good. I still have a house and car payment, but those are acceptable debts to me (for now).



---Politics = Poli (many) Ticks (blood sucking ectoparasites)
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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Tibbs, stay away from the credit counseling "services". PM me if you want more info.
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Re: Where do I get money advice? [Matt Boutte] [ In reply to ]
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In Reply To:
Tibbs, stay away from the credit counseling "services".




Ditto (time ten)!

A) Paying a company to sort out personal finance matters is not the answer as there is not one single thing they can do that you can not do yourself. In fact, many of the programs you hear or see advertised are in fact not far ahead of the FTC or other creditors themselves. Do a google search for Ameridebt or take a look at this link from the FTC website for what was formerly one of the biggest credit counselors - http://www.ftc.gov/...003/11/ameridebt.htm to read about some problems these companies can cause.

B) Entering into one of the credit counseling services (like Consumer Credit Counseling Service - CCCS) will not help as these programs are viewed in the same light as a bankruptcy in terms of credit.

C) Do you really want to pay (or more appropriately can you afford to pay) someone a 15-20% commision simply for managing your debts?


If you want to settle your debts, here is a link for an inexpensive e-book that covers everything the debt counselors charge 15-20% for: http://www.creditinfocenter.com/...s/eBookOrderDS.shtml

¯\_(ツ)_/¯
Last edited by: ms6073: Oct 31, 05 15:34
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Re: Where do I get money advice? [Mr. Tibbs] [ In reply to ]
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I used to run finance companies & my wife is a studdette in the mortg finance biz so here is the reality 2 cents:

If your credit sucks, paying back your debts will not help you. Period, end of story. Once you have charged off (not paid for some time) credit cards, had a car repo'd, or gone into foreclosure, it is a black mark on your credit file & nothing you do will remove it.....except one.

What is important credit? In this order:

1. Morgtage--don't ever, ever, ever be late. Nothing will cost you more $$ come re-finance time than being late on your mortg.

2. Car loan/installment debt--want to get a good mortg rate if you don't have one? Pay your car loans & installment debt on time. Car leases don't count (except when it comes to scores).

3. Credit card debt--either you pay them or you don't. If you pay them, and are rarely if ever late, your score will reflect that, but it is part of a matrix that also comprises # of cards, available balance, etc. Want to raise your credit score? Get a bunch of credit cards, max them to about 75% of avail balance, pay them off right away, and then carry $100-200 for 6 months to a year b4 paying off. Bingo, instant 20 pts for each card. Don't pay them, or pay them late, and you've screwed yourself over. Credit cards are the WORST type of debt to have.

4. Cable, phone, electric, mobile phone & doctor bills: if you paid them you get no credit. If you didn't, you get dinged slightly for collection items. If you want a cell phone, pay your cell phone bill. If you want cable, pay the bill. If you can't make the payments, you can't afford them & they are luxuries anyway.

5. Taxes. Takes the gov't some time to catch up with you, but getting a morgt with a tax lien is a PITA. Do a deal with the gov't b4 back taxes hit your credit report. They are happy to get small payments, and may make you do a budget with them, but you'll earn some grace period + not have your bank accounts seized.

6. This doesn't affect your credit score, but DO NOT bounce checks to the point that a bank closes your checking account. You will be fucked for at LEAST 5 years & there is absolutely NOTHING you can do about it. They all use the same reporting service, and if any bank closes your account due to NSF activity of any kind, almost no other bank will touch you.



Ok, so you didn't pay your bills, you have shitty credit, but want to become a good citizen again. Now what?

1. Find out what your credit score is. Basically, if your score is above 580 you are probably salvageable. The rest of this list is if you are salvageable. If not (<580), see Starting Over down below.

2. If you have collection items on your bureau (#4 above) don't pay them unless you want to use that service again. It won't help your score. Whether to pay any of these debts that haven't hit your bureau depends on #3. This includes Student Loans. Nobody cares, so why pay it (though they are getting a bit more agressive in collecting).

3. Did you default on a mortgage or auto loan (foreclosure &/or auto loan) or get more than 60-90 days past due? If yes, see Starting Over. If not continue.

4. Credit cards. Ditto advice on #2--if they are current, and you have always been in good standing, keep them happy. If not, if you have gone over 90 days past due & the rest of your credit is crap, might as well stop paying them--your score is screwed anyway, and it will take 3 years to repair the damage + you are paying 18%.


Starting Over. They just changed the BK laws, but it won't affect the people who really, really need it--i.e. those with no real income or resources. Tibbs, sounds like you are starting over in all aspects of life, so here is my advice: File BK (assuming you have <580 score & enough debt that it will take you 3 years to pay it off including the interest)---Chapter 7 is what you need. Completely wipes the slate clean + the day you get your BK discharge you can get better rates on a car (about 11-12%), credit cards (15-20%), or even a house (usually after 1 year, but <9% w/zero down shouldn't be a problem) than before you filed. Then again, if you DO have a decent score, and your debt problem isn't too out of hand, go see Consumer Credit Counseling service--it is the original, and still the best, and is non-profit. However, you are facing a 3 year climb out of debt, and there are no assurances that your score will be any better at the end of the 3 years. Something like 50-60% of CCC's customers end up in BK anyway.

So your options are 3 years of slaving to pay the Man @ 18%+ (assuming credit card debt), or a BK filing which you can do yourself and the slate is clean.

I'm sure some with throw the morality of personal responsibility into the arena--fine, but they aren't wearing your shoes or facing your problems. Do what is right for you.



As to your question of $$--almost nobody is going to touch you unless you have resources (cash or equity in a biz) or a good name (credit score).

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"There are two novels that can change a bookish fourteen-year old's life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs." John Rogers
Last edited by: mopdahl: Nov 1, 05 10:33
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Re: Where do I get money advice? [mopdahl] [ In reply to ]
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it is a black mark on your credit file & nothing you do will remove it.....except one.


Interesting read.. did I miss the one thing that will remove the black mark?

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Re: Where do I get money advice? [jhc] [ In reply to ]
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BK won't remove it but negate it.

You can try the letter writing campaign, but for the most part the CC companies will simply continue to validate the account + you'll get a flag on your bureau warning of possible fraudulent activity--resulting in an automatic TD from most CC companies.

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"There are two novels that can change a bookish fourteen-year old's life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs." John Rogers
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