In article <7c-dnR3Adq7MvYzZnZ2dnUVZ_v6dnZ2d[at]comcast.com> ,
"Shhhh" <123[at]456.com> wrote:

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Which is why it is so important to manage debt long before
it becomes a total crisis. If you wait too long, you most
likely have trashed your credit record and have no options.
But often times, even with damaged credit, a credit union
will loan money on signature with some collateral, like a
car title, or a relative to co-sign.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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Of Course if his credit is poor, he'll have a difficult time getting a loan
from anywhere. Including credit unions.


Shhhh


"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:john-0BF278.06121309032006[at]sn-ip.vsrv-sjc.supernews.net...
- quote -

Andy wrote:
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The only thing I can think of is they may hold you accountable so you
don't run up your new-found credit with your old spending habits.

Bob

Kevin Shen wrote:
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Maybe I am naive, but I just don't see what value these credit
counseling service offer. Anybody with a bit of savvy can negotiate
with their credit card companies themselves and avoid the fees (or
however these credit counseling services make their money). Just call
up the credit card company and say you are in way over your head,
thinking about bankruptcy, thinking about moving your balance to
another card, and what can they do about lowering the rate, etc. At the
same time do a lot of shopping around for lower rate cards or other
lower rate ways to finance the debt.

Can anybody provide any insight on what these credit counseling
services can do that someone who is motivated can't do for themselves?

Thanks,

Andy

"jIM" <noreplysoccer[at]hotmail.com> wrote
Re $18k U.S. of medical expenses in 2005:
- quote -

Kevin, any chance you can get a detailed response to the
questions above and post it? I think it would help others in
the future. In February at least one other thread was
started by a very young couple who were in similar heavy
debt and partly due to medical expenses.

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I don't know if it's okay. It does seem more and more are
choosing to forego it.

the first step to getting ahead is to stop falling further behind.

How did the medical expenses get incurred?
Did insurance cover these? why not?

It's OK to not have health insurance, but it is a legit line of
questioning.

I agree with posts- paying $900/month to debt is good. Can person
increase this by 10-11% to $1000/month? That is what I suggest.

At same time try to consolidate to a new credit card. Most will offer
balance transfer rates much lower than 19-30%. I am guessing the
person is paying these rates because they missed payments or had late
payments. This behavior needs to be corrected.

Much of debt is attitude, some is circumstance. So the attitude here,
IMO should be- take 3-6 years of buckling down and paying it off.
Dings on credit score go away after 7-10 years, I think. So the paying
$1000/month for 65-80 months is better than any credit service.

WHY? because the changes in behavior of spending during those 7-10
years of repayment are what your friend needs most. This is the
circumstance part. If he works hard to get out of debt, he'll have an
attitude that he won't want to do it again.

for discussions sake- what is rent payment, what utilities exist (how
high is cable or Satellite bill?), and how much is car payment?

In article <1141887893.476917.254150[at]j52g2000cwj.googlegroups.com> ,
"Bucky" <uw_badgers[at]email.com> wrote:

- quote -

I would think that he could go to a credit union and get a
signature loan for less than 29.99%. That is what is killing
him, not the debt itself, but the absurd interest rates.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Another point that I had forget to mention is that In my friend's
situation, the person was out of work 6 months out of the last year,
2005. In addition, the friend's family had incurred approximately
$18,000 U.S. of medical expenses, also in 2005. My friend is NOT
looking to get out of the responsibilities, but to get out of debt.
The friend already works 40 hours a week and has a side job on the
weekends, to supplement earnings. What little time is left must be
spent with the family and with the spouse. This friend has already
done all that is possible in this given situation but still seems
unable to "get ahead".

The interest rate of the debts vary anywhere from 7% to 29.99%.
Approximately $9,000 U.S. of the debt is at 29.99%, the remaining
anywhere from 7% to 19.99%. From what I understand, debt settlement
can reduce the overall principal of the debt significantly through
negotiation by the debt settlement company (by amounts such as 30%-50%
on the dollar). However, (from what I understand) there is a catch- in
the short term, one's credit rating will be harmed, as the balances
from the creditors are being negotiated, which can cause the bills to
be delinquent. But in the long run, one's credit rating will improve,
as one gets out of debt through the 2-3 year payment plan. After the
payment plan, the credit reporting bureaus will report that these
settled debts were paid as agreed (rather than paid in full). Is this
logic correct? Is there anything missing in the picture that I had
just described, that I may have overlooked? Will this be a wise manner
to handle this debt? I want to make sure that I give my friend the
best advice possible. Any additional advice will also greatly be
appreciated.

joe.spam.weinstein[at]gmail.com wrote:
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He said the credit card debt was $34,000. If the APR is 20%, then
that's about $567 per month. So he's not reducing his debt 30% per year.

In article <1141846518.438772.299420[at]v46g2000cwv.googlegroups.com> ,
"Kevin Shen" <KevinWinstonShen[at]netscape.net> wrote:

- quote -

Those expenses sound rather high for a person who is eye
deep in debt. Do they have a budget? An apartment should
only cost $600 a month or so, or split a $1200 apartment
between 2 people. Where does the other $1800 a month go?
Perhaps this person needs to go on a spending diet. Drop
the cable TV, eat out less, use some coupons, don't order
pizza, do some reading rather than renting movies, etc.
It should be easy to pull another $450 out of these expenses
and increase the payback by 50%.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

So you're paying back about 30% of the debt per year. It seems
you have the problem well enough in hand. What is the average
interest rate this debt is at? There will be no other option except
long term pain of one sort or another. The payments you're making
will not last too long, and in the intervening years the lifestyle you
develop to keep your expenses down will be to your long term gain.
If you can do something yourself to minimize the interest charges
that would be good, but if you do anything that hurts your credit
rating
you may regret it for a longer time.

- quote -

I agree with you, but just consider there are always
exceptions where this is not the option. A person who has had these extra
expenses come around, because of a health crisis for example, and can no
longer work a second or third job, or barely a first.
Or an elderly person, who cannot manage.
Yes, too many people are always looking to get out from their
responsibilities I agree, but have a bit of a heart for those who find
themselves in a situation, where you tighen up the bootstraps and get out
there solution, is not always available, or advisable.


Much regards
- quote -

Income: approximately $65K U.S. per year; Assets: minimal, renter, no
IRA, minimal savings (which are currently depleted); Current Expenses:
approximately $3,200/month (of which approximately $900 is going to
credit card payments). The person is aware of the short-term damage to
credit rating and sees the option of debt settlement as "short-term
pain for "long-term" gain). What course of action would you recommend,
credit counseling or debt settlement; any further advice?

"Kevin Shen" <KevinWinstonShen[at]netscape.net> wrote in message
news:1141825139.884892.325250[at]j33g2000cwa.googlegroups.com...
- quote -


Sorry, critical advice is what you'll get from me.

Why is the "solution" so often to try and get out of paying the
debt, or two haggle and reduce the legitimate debt, rather than
to buckle down, get a second or third job for a few years, and
pay the damned things off as per the agreements with the
creditors?

Why is this option never considered?

What is this person's income, assets, and current expenses?

I know someone who has approximately $34,000 U.S. of credit card debt.
This person is considering Credit Counseling or Debt Settlement, in
order to get out of this amount of debt. What are the
advantages/disadvantages of both Credit Counseling or Debt Settlement?
Given this aforementioned financial situation, what would be the best
strategy to handle this debt? Any kind, sincere, and honest (but NOT
critical) advice regarding this subject will be greatly appreciated.