kurtzfan Posted August 20, 2019 Share Posted August 20, 2019 I have a friend who tried to get out of debt as soon as possible. He heard there are profit and non-profit debt consolidation companies. He found one called C**** C****. Instead of paying the amount of debt, the company can lower the debt to 60% with service charge. However, he is concerned about the company. The company claimed that they won't update the credit file (Transunion and Equifax) until the file is fully closed. How can he check whether the company is reliable? Link to comment Share on other sites More sharing options...
Kragar Posted August 20, 2019 Share Posted August 20, 2019 He should listen to Dave Ramsey instead. 1 Link to comment Share on other sites More sharing options...
Crabcakes Posted August 20, 2019 Share Posted August 20, 2019 You're right to be cautious. Years ago when it became inevitable that my business was failing, I consulted with a lawyer in a large downtown firm (since that is where my business was located). The firm didn't have trustee services but the lawyer recommended a trustee to me, BDO. The consult was free of charge. Lawyers don't usually charge for an initial hour consult. I would get the advice of a professional because these days, there are many options available. When the time came several months later, I was under severe stress and someone who I trusted recommended somebody else, a so called specialist, who's services, while legal, were less than professional. In the end, I filed for bankruptcy and while the process was onerous, it was not as bad as I thought it would be. 1 Link to comment Share on other sites More sharing options...
Russ Posted August 20, 2019 Share Posted August 20, 2019 I had a buddy just do this to clear his debt that he was battling with for the last handful of years. I don't know what it'll be like long term but for now he's happy with it. Link to comment Share on other sites More sharing options...
Putgolzin Posted August 20, 2019 Share Posted August 20, 2019 52 minutes ago, Kragar said: He should listen to Dave Ramsey instead. Like Kragar, I can't help you with your actual question. I don't know if that's legit, but I would say that debt consolidation doesn't help from a practical perspective. It's mostly just re-arranging the debt whereas the key to getting rid of the debt is to change behaviour and worldview. Dave Ramsey is a proper American, big-business redneck, so a lot of people will dismiss him without actually paying attention to what he says. If you want to actually deal with the debt, it's 90% about behaviour and has very little to do with the actual math of the problem. As such, Dave Ramsey is a proponent of a thing called the "Debt Snowball". You pay off your smallest debt first. All of a sudden you see what can be accomplished and it gives you belief and strength to pay off your next-smallest-debt. Now your debt-paying muscles are growing and you pay off the next one. Pretty quick you're halfway through, and you can see how to pay off the really big ones (visa, car loan, student loans...even your effen mortgage!). It sounds ridiculous, but I personally am well on my way down that path. 1 Link to comment Share on other sites More sharing options...
Kragar Posted August 20, 2019 Share Posted August 20, 2019 49 minutes ago, nzan said: Like Kragar, I can't help you with your actual question. I don't know if that's legit, but I would say that debt consolidation doesn't help from a practical perspective. It's mostly just re-arranging the debt whereas the key to getting rid of the debt is to change behaviour and worldview. Dave Ramsey is a proper American, big-business redneck, so a lot of people will dismiss him without actually paying attention to what he says. If you want to actually deal with the debt, it's 90% about behaviour and has very little to do with the actual math of the problem. As such, Dave Ramsey is a proponent of a thing called the "Debt Snowball". You pay off your smallest debt first. All of a sudden you see what can be accomplished and it gives you belief and strength to pay off your next-smallest-debt. Now your debt-paying muscles are growing and you pay off the next one. Pretty quick you're halfway through, and you can see how to pay off the really big ones (visa, car loan, student loans...even your effen mortgage!). It sounds ridiculous, but I personally am well on my way down that path. It would be hard for me to trust the company, without knowing who it was. would need to do a lot of research for sure. But you have Dave nailed down exactly. As I am not religious, I tune him out when he talks about the Bible and such, but everything he says makes so much sense. I took his course a couple years ago, and while we dont follow him to the letter, it has helped us out a fair bit. We didn't have non-mortgage debt, so that helps out a lot. But yeah, he will never advocate using a debt consolidation company, and really won't even suggest moving debts to a lower interest credit card. As you said, you are just better off getting in the habit of paying debts quickly, using the Snowball, and the inspiration you get from each debt paid off powers you along. Of course, you need to stop borrowing in the meantime... and forever (mortgage aside). 1 Link to comment Share on other sites More sharing options...
Nuxfanabroad Posted August 20, 2019 Share Posted August 20, 2019 The small fry get the pinch, whilst the rich often make out(exploiting such scenarios) like bandits. Can't help but feel this whole system WILL come crashing down..within yrs; not a decade. Supposedly 'official' worldwide debt approaches(or is at?) 300% of global GDP. Fiat ponzi scheme on it's last legs. 1 Link to comment Share on other sites More sharing options...
Putgolzin Posted August 20, 2019 Share Posted August 20, 2019 I don’t know if you have any interest in this at all, please disregard if not. Todays program on Dave Ramsey, the 2nd caller at about the 4 minute mark is the exact representation of where lots of people find themselves. https://www.daveramsey.com/show/archives/2019-08-19?mode=listen Link to comment Share on other sites More sharing options...
Crabcakes Posted August 20, 2019 Share Posted August 20, 2019 3 hours ago, Nuxfanabroad said: The small fry get the pinch, whilst the rich often make out(exploiting such scenarios) like bandits. Can't help but feel this whole system WILL come crashing down..within yrs; not a decade. Supposedly 'official' worldwide debt approaches(or is at?) 300% of global GDP. Fiat ponzi scheme on it's last legs. The concept behind debt consolidation is to lump your debts together in 1 loan at a lower interest rate. Credit cards for example charge 19% typically which is very hard to get out from if the debt gets too high. The lower rates make the debt issue easier to deal with. Debt consolidation loans usually will give you a 12% rate and require the loan to be secured with collateral such as a vehicle or a house and as such, may be difficult to qualify for. There are a lot of bottom feeders out there so be careful. Part of the bankruptcy process involves credit counselling and you have to demonstrate over 9 months that you are able to manage your finances properly as part of the conditions of being released. Behavior must change and I have known people who were unable to stick to consumer proposal plans and found themselves back in trouble when they couldn't make the payments. There are 3 levels of possible solutions and which one you choose depends on the severity of the problem. You need to find out which solution fits your situation Debt consolidation Consumer proposal Bankruptcy Consumer proposals and bankruptcy are legal arrangements and require a certified professional to administrate Link to comment Share on other sites More sharing options...
Kragar Posted August 20, 2019 Share Posted August 20, 2019 4 hours ago, Nuxfanabroad said: The small fry get the pinch, whilst the rich often make out(exploiting such scenarios) like bandits. Can't help but feel this whole system WILL come crashing down..within yrs; not a decade. Supposedly 'official' worldwide debt approaches(or is at?) 300% of global GDP. Fiat ponzi scheme on it's last legs. Yep, it's absolutely insane. 1 Link to comment Share on other sites More sharing options...
CaptKirk888 Posted August 20, 2019 Share Posted August 20, 2019 Tell you friend to use the Credit Counsel Society https://www.nomoredebts.org/ they are are awesome and nonprofit with very low fees Link to comment Share on other sites More sharing options...
redhdlois Posted August 20, 2019 Share Posted August 20, 2019 One thing those ads on tv for debt consolidation don’t tell you, is that a consumer proposal will be a mark on your credit score....just like a bankruptcy. Link to comment Share on other sites More sharing options...
Gurn Posted August 20, 2019 Share Posted August 20, 2019 There are so many adds for "credit fixing" companies that I am tempted to go into massive debt, then get the help to pay less than I owe. Almost seems silly to just live within my means, when I can just buy lots of stuff, and ask for a do over when the payments start to hurt. Link to comment Share on other sites More sharing options...
CanuckinEdm Posted August 20, 2019 Share Posted August 20, 2019 Debt consolidation should only be an option if there is no way to pay down the loans individually essentially your taking debt and getting a loan on that debt. Sometimes on a higher interest debt and sometimes on a lower interest debt. Maybe seek advise from a financial adviser first. I would do as someone else suggested find a low total debt to pay off first to feel better about the situation (unless the interest rate is super low) then i would try to tackle one of the higher interest ones next. Link to comment Share on other sites More sharing options...
Shift-4 Posted August 20, 2019 Share Posted August 20, 2019 1. Stop spending 2. Pay down as much as you can 3. Stop spending 4. If possible move debt to lower interest loans 5. Stop &^@#ing spending!!! Link to comment Share on other sites More sharing options...
Nuxfanabroad Posted August 20, 2019 Share Posted August 20, 2019 4 hours ago, Crabcakes said: The concept behind debt consolidation is to lump your debts together in 1 loan at a lower interest rate. Credit cards for example charge 19% typically which is very hard to get out from if the debt gets too high. The lower rates make the debt issue easier to deal with. Debt consolidation loans usually will give you a 12% rate and require the loan to be secured with collateral such as a vehicle or a house and as such, may be difficult to qualify for. There are a lot of bottom feeders out there so be careful. Part of the bankruptcy process involves credit counselling and you have to demonstrate over 9 months that you are able to manage your finances properly as part of the conditions of being released. Behavior must change and I have known people who were unable to stick to consumer proposal plans and found themselves back in trouble when they couldn't make the payments. There are 3 levels of possible solutions and which one you choose depends on the severity of the problem. You need to find out which solution fits your situation Debt consolidation Consumer proposal Bankruptcy Consumer proposals and bankruptcy are legal arrangements and require a certified professional to administrate I'm familiar with the concept. When we all witness the profligate spending(eg: subprime banks, etc...) of the "too big to fail" it makes the struggles/tribulations of the common man appear trivial. Definitely aware that the concept of "living within one's means" no longer resonates with the avg person. We're also all victims of advertising(to varying degrees) as well. Sheer greed has resulted in a society with a million pitfalls. At the end of the day, just don't see this 'system' prevailing much longer. Link to comment Share on other sites More sharing options...
Nuxfanabroad Posted August 20, 2019 Share Posted August 20, 2019 24 minutes ago, Shift-4 said: 1. Stop spending 2. Pay down as much as you can 3. Stop spending 4. If possible move debt to lower interest loans 5. Stop &^@#ing spending!!! First rule of debt-club, is we don't talk about our debt-club. Just get p*ssed off, have a beer & a brouhaha! Link to comment Share on other sites More sharing options...
Crabcakes Posted August 21, 2019 Share Posted August 21, 2019 6 hours ago, Nuxfanabroad said: I'm familiar with the concept. When we all witness the profligate spending(eg: subprime banks, etc...) of the "too big to fail" it makes the struggles/tribulations of the common man appear trivial. Definitely aware that the concept of "living within one's means" no longer resonates with the avg person. We're also all victims of advertising(to varying degrees) as well. Sheer greed has resulted in a society with a million pitfalls. At the end of the day, just don't see this 'system' prevailing much longer. I can't think why I quoted you. Sorry. I was really just making a statement Link to comment Share on other sites More sharing options...
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