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#26 2006-07-05 11:50 am
Re: In Need of Debt Counseling
bedstuy wrote:
Doesn't the Bible say that debtors should be relieved of debt every 7 years?
Dunno. It may also say that a debtor will be sold as a slave to the person who loaned them the money...
"I'd rather be told, 'Have a nice day.' by someone who doesn't mean it, than 'F*** you!' by someone who does." - Lewis Black
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#28 2006-07-05 12:16 pm
- user
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- From: I'm not getting you down, am I
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Re: In Need of Debt Counseling
They're real good for jimmying door locks, for example.
Aw, he's no fun, he fell right over.
Unless you become as little children, there's no way you will believe this crap.
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#29 2006-07-05 1:33 pm
- DevoDoc
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Re: In Need of Debt Counseling
I use my credit card for everything: bills, groceries, gas, eating out. I even put the down payment on my car on my credit card.
But, I always pay the full balance every month. I haven't paid a penny in interest in 8 years.
I've piled up tons of free airline miles this way; probably 8 or 10 free round-trip flights over the past few years.
We also know how cruel the truth often is, and we wonder whether delusion is not more consoling. - Henri Poincaré
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#30 2006-07-05 2:18 pm
Re: In Need of Debt Counseling
Anyone who thinks credit counselors will necessarilly destroy your credit are dead wrong. Its all about who you use.
Check out state sponsored counselors. Years ago when my debt was worked through using an agency sponsored by the regional local govt, my credit improved and was golden. Even while paying off debt, I qualified for a number of loans.
EDIT:
One of the biggest plusses about a good credit counselor is that they will negotiate with the banks and cards to get the percentage rates dramatically lowered or even dropped all together.
The company we used asked for a donation/fee which was optional.
Last edited by StaticAge (2006-07-05 2:25 pm)
"Live with your head in the lion's mouth. I want you to overcome 'em with yeses, undermine 'em with grins, agree 'em to death and destruction, let 'em swoller you till they vomit or bust wide open." -Ralph Ellison
"Overpower, overcome" -Cro-Mags
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#31 2006-07-05 3:13 pm
- bratboy
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- Royal Wombat
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Re: In Need of Debt Counseling
TheConfuzed1 wrote:
First of all, some background--I am the internet sales and finance manager of a car dealership.
I am very much aware of credit and what is a good way or a bad way to handle debt.
You're not going to like my answer, but it's as straight an answer as you're going to get:
Don't do credit counseling. It will smurf you.
Many credit counseling companies will result in late payments being posted, and that is no help.
Also, 95% of lenders won't touch you if you're in credit counseling. The reason for this is because about 90% of the people going through it end up filing for bankruptcy anyway, so you're a huge financial risk.
It is cheaper, and less detrimental to your credit to simply throw in the towel and file for bankruptcy. Lenders are comfortable with a BK because you have already dealt with the situation, and you are now on your way up, as opposed to still being in the situation, and on your way down. Also, someone that has recently filed for bankruptcy is more likely to pay on time, as opposed to someone going through credit counseling, because the worst thing that you can do after a bankruptcy is not pay, and the point of filing bankruptcy is to fix your credit, not worsen it.
You will have people tell you to accept your responsibility and pay the debt that you have accumulated, etc, but this is the straight truth.
Wow....okay, I totally disagree with this.
I can't see how $15,000 in debt would make bankruptcy worth it. I was in about that much credit card debt at one point.
I used a credit counseling company. All my accounts were closed, they were able to get lower rates on many of my accounts, and I pay just one bill a month. I've heard that it is possible to get all of these things yourself, but at the time I was young and wasn't sure what to do. They were a little iffy at the beginning, but they haven't screwed anything up in years.
I've now had years of on-time payments on each card, they were brought current long ago, and my credit score actually isn't bad.
I still have a few thousand more to pay off, but I'll be able to double or triple my monthly payment once I'm finally out of grad school.
"One thing we've learned is there's a difference between being disappointed and having madmen in authority."
--Paul Krugman
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#32 2006-07-05 5:36 pm
Re: In Need of Debt Counseling
DevoDoc wrote:
I use my credit card for everything: bills, groceries, gas, eating out. I even put the down payment on my car on my credit card.
But, I always pay the full balance every month. I haven't paid a penny in interest in 8 years.
I've piled up tons of free airline miles this way; probably 8 or 10 free round-trip flights over the past few years.
And I bet you have a mighty good credit rating too.
Just like back in Saigon! Eh, slick?
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#33 2006-07-05 10:21 pm
- mtpalms
- plz stand by
- From: Telstar
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Re: In Need of Debt Counseling
Steyr AUG wrote:
sturner wrote:
And stop using credit cards.
Credit cards, if used responsibly, can be a wonderful financial tool.
user wrote:
They're real good for jimmying door locks, for example.
Or scraping off the Magic Shave.
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#34 2006-07-06 9:31 am
- user
- Your plastic pal who's fun to be with
- From: I'm not getting you down, am I
- Registered: 2001-10-15
- Posts: 16030
Re: In Need of Debt Counseling
Steyr AUG wrote:
DevoDoc wrote:
I use my credit card for everything: bills, groceries, gas, eating out. I even put the down payment on my car on my credit card.
But, I always pay the full balance every month. I haven't paid a penny in interest in 8 years.
I've piled up tons of free airline miles this way; probably 8 or 10 free round-trip flights over the past few years.And I bet you have a mighty good credit rating too.
While CC companies do get a taste from the merchants, most of their income is from the interest they collect. They wouldn't like this type of consumer and may actually rate him lower.
For the best credit rating, carry a small balance occasionally.
Aw, he's no fun, he fell right over.
Unless you become as little children, there's no way you will believe this crap.
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#35 2006-07-06 9:41 am
Re: In Need of Debt Counseling
I've linked to this dozens of times, and though it's a bit dated now, it's still one of the best sites I've seen on credit cards. Everyone should read it:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/
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#36 2006-07-06 10:53 am
Re: In Need of Debt Counseling
user wrote:
While CC companies do get a taste from the merchants, most of their income is from the interest they collect. They wouldn't like this type of consumer and may actually rate him lower.
For the best credit rating, carry a small balance occasionally.
No.
Credit scores are based on things like your total debt, debt-to-available-credit ratio, debt-to-income ratio, credit limits, types of accounts, number of late payments, and age of accounts. Whether you make the credit card comapnies money or whetherthey "like you" has nothing to do with it.
For the best credit rating, make sure to use the card but don't carry a balance. You want a very low debt-to-available credit ratio, and carrying a balance makes it higher. Credit reports typically have two years of history in them for credit cards. Each of the 24 months will have an 'OK', 'NB' (no balance), 'TN' (too new), or one of the bad ratings: '30', '60', '90', '120', '150' (for days past due), 'CO' (for collection or charge off), 'WB' (for a reported credit counseling plan or bankruptcy), or 'RF' (for repossession or foreclosure).
Ideally, for a credit card you want it open more than 7 years with a high credit limit, 2 years of 'OK' payments every month and no balance rolling over.
FYI: Even if you pay off your credit cards each month, your credit reports will still very likely show balances on the accounts. This is because the dates that your balance are communicated to the credit reporting agencies probably doesn't coincide with when you make your payments each month.
Also, someone mentioned on the first page about calling the credit card companies and cancelling accounts. Cut up the cards, but leave the accounts open, especially if they are older accounts. Closing accounts makes your debt-to-available credit ratio higher, lowers your credit limit, and reduces the age of your accounts. --All of these lower your credit scores.
Last edited by decker (2006-07-06 11:00 am)
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#37 2006-07-06 10:54 am
Re: In Need of Debt Counseling
user wrote:
Steyr AUG wrote:
DevoDoc wrote:
I use my credit card for everything: bills, groceries, gas, eating out. I even put the down payment on my car on my credit card.
But, I always pay the full balance every month. I haven't paid a penny in interest in 8 years.
I've piled up tons of free airline miles this way; probably 8 or 10 free round-trip flights over the past few years.And I bet you have a mighty good credit rating too.
While CC companies do get a taste from the merchants, most of their income is from the interest they collect. They wouldn't like this type of consumer and may actually rate him lower.
For the best credit rating, carry a small balance occasionally.
A credit rating shows how likely a person is to pay off their debt. Paying of your debt raises this raiting.
Just like back in Saigon! Eh, slick?
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#38 2006-07-09 9:03 pm
- TheConfuzed1
- Faking Sanity
- Registered: 2000-04-19
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Re: In Need of Debt Counseling
user wrote:
It's better for your credit to declare bankruptcy than to actually pay off your debt?? Are you guys serious??
Potential lenders don't look at it that way. They see people in credit counseling as a bad risk, because 90% of them will go on to file bankruptcy anyway.
It has nothing to do with paying off the debt, and everything to do with the fact that they don't want to be one of the companies to go down with the ship.
The storm starts when the drops start dropping. When the drops stop dropping, the storm starts stopping.
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#40 2006-07-10 8:49 am
- user
- Your plastic pal who's fun to be with
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Re: In Need of Debt Counseling
TheConfuzed1 wrote:
user wrote:
It's better for your credit to declare bankruptcy than to actually pay off your debt?? Are you guys serious??
Potential lenders don't look at it that way. They see people in credit counseling as a bad risk, because 90% of them will go on to file bankruptcy anyway.
It has nothing to do with paying off the debt, and everything to do with the fact that they don't want to be one of the companies to go down with the ship.
How does that make it better for your credit to declare bankrupcy? That you're getting it over with sooner?
I can concede that going into a debt program is bad for your credit, but no way is it worse than bankrupcy.
Aw, he's no fun, he fell right over.
Unless you become as little children, there's no way you will believe this crap.
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#41 2006-07-10 9:41 am
Re: In Need of Debt Counseling
Actually, some creditors (like less than scrupulous car dealers) like bankruptcy. They know someone that files Chapter 7 can only do so once every 6 years. If they sell them a car, they have nothing to lose because if the person doesn't pay, they get the car back. There's no chance of them filing.
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