Struggling to pay your debts and looking for a way out? New rules severely limiting the marketing tactics of debt settlement companies kick in next week. And starting next month, the firms won't be able to collect large up-front fees any longer. So with the disappearance of those all-too-familiar "50 cents on the dollar" late night TV ads and radio spots, the folks at “The Today Show” figured it would be a good time to review the options available to consumers who find themselves drowning in debt.
There are several options, though none is easy. In general, those in debt should never sign up for a service that requires a large up-front fee. Here’s a look at your choices:
Debt consolidation: Using a single loan – such as a home-equity loan -- to pay off multiple debts at full price. The benefit is usually lower interest rates, and this option is generally credit score neutral – a big plus compared to the other options. Unfortunately, debt consolidation is also far less common since the economic collapse of 2008, as banks are far less willing to give out home equity loans today.
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Want a real economy recovery?
ReplyDeleteWe should try this one.
Cancel all debts, public and private.
No one owes nothing.
Watch america grow again.
I know you rich folks cant afford it.
9:58 - Spoken like someone who owes a lot of people a lot of money!! Get a job you deadbeat!!
ReplyDeleteMy husband and I saw all this coming with the big real estate bubble and decided to pointedly pay off all of our debt.
ReplyDeleteAt the time, we didn't own a home and wanted one but were not going to pay the inflated prices that were out there.
We got all of our debt down to one vehicle payment (295/month) and then saved money regularly. When the bubble busted and prices fell.
Now we're homeowners with an "affordable" mortgage of less than 600/month.
It's not like we were in debt up to our ears because we were careful not to let that happen, but we did have "some" credit card debt. Not anymore! What a feeling! I just wish more people had used some common sense and had done the same thing we did.
11:31 - How wonderful for you and your husband! You are so smart, someday I will be smart like you and be able to anonymously tell people how smart I am (without having to prove anything). Perhaps you should have used some of that money you saved to buy some friends to come over and hand out in your double wide.
ReplyDeletewhat happened to only purchasing items that you can pay cash for??? anyone who is in serious debt has no one to blame but themselves.... restraint rules!!!!
ReplyDelete11:31 Anon
ReplyDeleteYou don't know me and all you have is to attack me for my comment?
Oh please...seems YOU must be the one living in the double wide and with no education either!
You're just jealous, probably because you're sinking in debt!
11:31 Sounds like to me from her post, they saved their money and put down a down payment on the house to get their payment down instead of being like others and putting down little or nothing and being buried in their mortgage payment.
ReplyDeleteI say good for them and I hope they continue to prosper. Sounds like to me they're doing something right.
I have a couple of friends who are just about debt free themselves and I say the same thing, good for them!
You sound very unhappy, maybe it's because you are buried in debt?
11:31 - You sound like a very unhappy person - maybe you're drowning in debt?
ReplyDeleteAs I read the post you commented on, it sounds like to me this couple took responsibility and cleared their debt and saved for their house.
I commend them! It sounds like to me they did it right.
Who cares if they can provide proof on a blog. What kind of proof could they provide on a blog anyway.
Their details are really none of your business.
The comment alone makes perfect sense and is the way others should be taking care of their debt.