Hi, I am one of the millions citizens that after the 9/11 events, have financial difficulties. i have credit card debts and my credit score is only 527. it makes it difficult for me to find a lender or a loan to consolidate my debts. can you give me an advice please? thanks
Thanks for writing, and I empathize with you... there are thousands of people who have been directly, or indirectly, financially impacted by the 9/11 tragedy.
The good news is that there are several possible solutions to your predicament, but which one is the best for you depends on several considerations, including your income, your balances, your interest rates, and your creditors.
Very quickly, if you want a free debt help consultation with one of Bill's approved debt help partners, click here:
If you just want to learn more and explore your debt help options, I will walk through your alternatives.
If you have sufficient income to pay more than your monthly minimums, you may be able to pay off your accounts through planned repayment. First, you should carefully review your finances to cut expenses wherever possible, to free up as much cash as possible to apply to your debts. While you will continue to make the monthly payments on all of your accounts, you will pay all excess cash to your highest interest account to pay it off as quickly as possible. Then do the same with your next-highest interest card, until that account is paid off. Continue this process until you have succeeded in paying off all of your credit cards. Depending on how much above the minimums you can pay each month, this method may rid you of your debt in a matter of years, save you thousands in interest, and preserve your good credit history. If you cannot afford to pay any more than your minimums, you may want to seek the assistance of a professional organization, such as a debt settlement or credit counseling firm.
CCCS (consumer-creditcard-counseling-services) companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. There are several drawbacks to CCCS, though. First, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, it is likely to have a negative impact on your credit score, so you may not wish to enter into a DMP if you anticipate any large purchases, such as home or an auto, in the near future. Third, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan.
The second option to consider are the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt. There is one major drawback to debt settlement programs, though?they will significantly damage your credit while in the program and for at least a year or two afterwards. However, if you are currently unable to afford to pay your creditors, the hit to your credit may be worth the benefit of riding yourself of credit card debt.
Again, if you want a free debt consultation, click here:
I encourage you to explore the Debt Help section of Bills.com at /debt-relief/
There you can learn more about the options I have described above. Hopefully one of the three options I have described about will improve your financial situation.
I hope that this information will help you Find. Learn. Save.
Best of luck,