Major Debit and need advice

**BOOST** · 08-09-2008, 07:49 PM

I have around 60k in unsecured debit I need to get rid of. If the payment is due the 8th and you pay it the 9th, they jack your interest rates. Chase suck dick, never use them. I went from 6.99% to 29.9% because I was 2 days late, it did not post in time on-line. I have called them, argued with them, nothing they are not moving. Please do not tell me how do you have this much, I just do and cannot afford the monthly payments anymore with the jacked interest rates. I own a home but to the great economy we are in, the house is not worth enough to take a home loan on. I have read a few debit settlement companies, any feedback. I really do not want to declare bankrupt as it really kills your credit and the laws have changed, so I would still be on the hook. I do not have a issue paying them, I just need help with interest rates or to just settle. I cannot get a loan as my debit to ratio is to high and consolidation loans, you still carry all the debit and it will take 20 years to pay it off. I know even with debit settlement, your credit takes a short term hit, I have little choices left. I just want to make sure I am doing the right thing and picking the right company. I am taling with a company that is showing me a program where my payments would be $700.00 less a month and all the debit would be gone in 3 years.

Thanks Bro's

**wilson9d** · 08-09-2008, 08:00 PM

The debt consolidation companies are a rip off imo. Do you have any equity in your home?

**10nispro** · 08-09-2008, 08:02 PM

Most consildation companies are someway operated by the banks. Sucks huh!!! You are doing the right thing and sitting down with someone that can show you a way to get your life back in order. I know most say don't do bankruptcy but you may be a good candidate. Also shop around and see if you can get a better apr with someone else.

Good Luck

PT · 08-10-2008, 02:43 AM

exactly, find a better apr. try to take a lowere intrest loan out to pay off the debit and find a 0-5% credit card and move the debit to it

**glamazonprince** · 08-10-2008, 02:45 AM

well am option is to file bankruptcy and then form an LLC-basically incoporate yourself and then start over using the llc to obtain credit--look into it-it works-there are some who repeatedly do this-form llc's-bankrupt-then just start over-they never pay off debt-just know the system-if you know the laws you can run the show not work for it-knowing all the loopholes is how the kennedys only pay 100,000 k in taxes on their fortune each year-also when the bitcheas at chase wont compromise threaten bankruptcy they change their tune-they want payment--just say youll get nothing-theyll work with you -you gotta be mean with them folks-you cant take no-you ultimately are in control-just keep that in mind-

PT · 08-10-2008, 04:03 AM

do you own your home? if so how much equity do you have?

**BOOST** · 08-10-2008, 01:06 PM

Yes I own a house, but there is only 100k in equity and I already tried to get a line of credit, home equity loan, due the housing market and my debit to income ratio they declined me, so the house is out. What about a debit settlement company like this place http://www.neweradebt.com/ I just sent certified letters to the 3 credit card companies, either they love the rate or they are not getting shit.

**DSM4Life** · 08-10-2008, 02:33 PM

I just got a CC from my credit union to consolidate all my dept at 2.99% life of the card !

**B.E.N.** · 08-10-2008, 03:33 PM

Originally Posted by BOOST

Yes I own a house, but there is only 100k in equity and I already tried to get a line of credit, home equity loan, due the housing market and my debit to income ratio they declined me, so the house is out. What about a debit settlement company like this place http://www.neweradebt.com/ I just sent certified letters to the 3 credit card companies, either they love the rate or they are not getting shit.

Just an FYI...most mortgage companies consider a debt consolidation to be a bankruptcy on our credit.\

If your Debt-to-Income is the issue then consider an FHA loan with co-signer (parent, brother/sister, etc.). Cashout to payoff you CC should be lower your debt ratio quite a bit if your going from 29% to 6.5% with the mortgage. You must be way over extended...

**wilson9d** · 08-10-2008, 06:33 PM

Originally Posted by BOOST

Yes I own a house, but there is only 100k in equity and I already tried to get a line of credit, home equity loan, due the housing market and my debit to income ratio they declined me, so the house is out. What about a debit settlement company like this place http://www.neweradebt.com/ I just sent certified letters to the 3 credit card companies, either they love the rate or they are not getting shit.

what is your dti and fico

**zimmy** · 08-11-2008, 02:16 PM

i used www.incharge.org

They helped alot...basically you can do the same thing without them. Just call your cc and request to be on an assistance program. They make you close your card with them and lower you're rates down to like 3 %. Doesn't show on your credit when you are done. But you won't be able to get a cc through them again after words.

PT · 08-11-2008, 02:31 PM

i always keep a 0% card. i find one that has 0% for a year and cancel it after that time frame and start a new one. i have a few that are between 2-4% but i refuse to pay anything higher then that

**spywizard** · 08-11-2008, 02:35 PM

Originally Posted by 10nispro

Most consildation companies are someway operated by the banks. Sucks huh!!! You are doing the right thing and sitting down with someone that can show you a way to get your life back in order. I know most say don't do bankruptcy but you may be a good candidate. Also shop around and see if you can get a better apr with someone else.

Good Luck

call them, close the account, and offer/request a lower interest rate.. it's called a freeze..

also, contact your home bank, the one that really owns the house, tell them you are having problems, need to renegotiate the home loan, many banks are lowering interest rates, and in some cases lowering the amount of the original loans..

good luck..

**ghettoboyd** · 08-12-2008, 12:47 PM

whatever you do dont use one of those credit companies to help u. i did and thay set me up with a payment that i thought was going toward my debt. it ultamatly wasnt. the money goes to them to do nothing, meanwile your credit goes to shit cus thay tell you not to pay your bills and save your money to settle. there goal is to take 60% of the debt that you owe over time, so even if thay reduce your debt to like 40% your eventually paying 100% of it.(cus face it, 3 years to eliminate debt is not going to happen) so after i figured it out i cut them off. and went to a bank to get a loan.the crappyest part of all is that at tax time any money you "saved" through settlement is considered income and you must pay taxes on it. needless to say i have IRS probs. all i was trying to do is not go bancrupt and do the right thing but i feel i am being punished for it. good luck to you. i wish i had the answer to your question but all i can do is tell you my experiences.

**Lift_Heavy_NY** · 08-12-2008, 03:24 PM

Bankrupcy you can keep your home and cars. Fuc it, your in a house already so a morgage wont be a problem. Become cash rich and rebuild you credit with new cards (high interest of course) but dont run them up again. If you have some money saved, you can also go a few months with out paying them and then get them to take 15 to 20% of what you owe in a payoff, but that fucs your credit up also.

**BOOST** · 08-12-2008, 08:04 PM

I thought they changed the bankrupt laws and you are still on the hook for the loot. I closed chase today and they put me at zero percent, they were actually pretty decent about vs the last time I called them, maybe many people are feeling the squeeze. American express has 2 options, hardship program which sucks, 9.9% or a settlement, I am waiting for a settlement and a program. It just sucks I will loose my amex and never get one again, I have been with them for 20 years. I never heard of a mortgage company cutting a better deal?? I will hit them next.

**Lift_Heavy_NY** · 08-12-2008, 09:27 PM

Originally Posted by BOOST

I thought they changed the bankrupt laws and you are still on the hook for the loot. I closed chase today and they put me at zero percent, they were actually pretty decent about vs the last time I called them, maybe many people are feeling the squeeze. American express has 2 options, hardship program which sucks, 9.9% or a settlement, I am waiting for a settlement and a program. It just sucks I will loose my amex and never get one again, I have been with them for 20 years. I never heard of a mortgage company cutting a better deal?? I will hit them next.

No garnishments or anything, sorry to say I go to court on the 20th to finalize mine. Got laid offf this winter and couldnt make credit card payments, they raised my cards to 29+% and wouldnt work with me to get it down. Now they dont get shit. As far as cuttting a deal (if you were speaking to me) I was referring to CC's. You would be surprised, you get CC's back right away, high % rates, but pretty easy to restore credit, plus theres people that can help get your credit back fast, Im speaking to one in 3 weeks. Honestly though, your this much in debt, why are you so worried about your Amex card for....stack cash and spend that. Believe me, youlll respect your money more when you have to break in to your stash of cash to by stuff, swiping a card is to easy....shit they make it that way. It becomes a desease for some. One thing you wont get though is a morgage after a bankrupcy, shit they will barely give you one now with a 100G in the bank.

**B.E.N.** · 08-12-2008, 09:59 PM

Originally Posted by Lift_Heavy_NY

One thing you wont get though is a morgage after a bankrupcy, shit they will barely give you one now with a 100G in the bank.

Negatory.

Wait 12 months. Begin establishing trade lines (secured CC) immediately after BK. FHA mortgage with decent interest rate.

Until they made the BK laws tougher their was no reason to pay off your CC once you went so far in debt.

Of course you see how easy it was for CC companies to have the BK laws changed. The power of lobbyists. Them and Sallie Mae (student loans) which you can 99.99999% of the time NEVER walk away from and you can't tell me the $ does not speak loudly in DC.

**Lift_Heavy_NY** · 08-13-2008, 07:57 AM

^^I know you can rebuild your dredit, but right now its real tough to get a morgage, atleast here in NY. They want 25% down as a minimum, almost half of that ina savings also and great credit. So, after a bankrupcy you wont have great credit for a pretty long while, so I still stand behind mycomment about not being able to get a morgage. Because morgage companies were giving loans so easy in the past is why the big banks have fallen, the goverment wont make that mistake again, Greenspan said it himself.

**B.E.N.** · 08-13-2008, 09:35 AM

Originally Posted by Lift_Heavy_NY

^^I know you can rebuild your dredit, but right now its real tough to get a morgage, atleast here in NY. They want 25% down as a minimum, almost half of that ina savings also and great credit. So, after a bankrupcy you wont have great credit for a pretty long while, so I still stand behind mycomment about not being able to get a morgage. Because morgage companies were giving loans so easy in the past is why the big banks have fallen, the goverment wont make that mistake again, Greenspan said it himself.

FHA. 97.75% Loan-to-Value Then you can ask the seller to pay up to 6% seller concessions and get 3% of your closings costs paid by Down Payment Assistance Programs. So NO...you do not need 25% down.

FHA exists in every county in every state (including NY!).

The only reason he would have to wait 12 months after his BK is because that is an FHA guideline. Sounds like he is keeping up fairly well now. Declare BK (don't include the house and mortgage!) and keep paying your bills until your attorney tells you all accounts are frozen and can no longer be declared late. Come out of the BK check your credit and make sure everything that should be included in the BK reports as such. Go to your bank, deposit $1,000, and open up a secured credit card against the money. Use it each month and pay it back in full each month. Continue to monitor your credit every 4-5 months. After 12 months is up go see a mortgage company that is FHA approved.

Then send me my consultant fee!!!!

**Lift_Heavy_NY** · 08-13-2008, 10:38 AM

Originally Posted by B.E.N.

FHA. 97.75% Loan-to-Value Then you can ask the seller to pay up to 6% seller concessions and get 3% of your closings costs paid by Down Payment Assistance Programs. So NO...you do not need 25% down.

FHA exists in every county in every state (including NY!).

The only reason he would have to wait 12 months after his BK is because that is an FHA guideline. Sounds like he is keeping up fairly well now. Declare BK (don't include the house and mortgage!) and keep paying your bills until your attorney tells you all accounts are frozen and can no longer be declared late. Come out of the BK check your credit and make sure everything that should be included in the BK reports as such. Go to your bank, deposit $1,000, and open up a secured credit card against the money. Use it each month and pay it back in full each month. Continue to monitor your credit every 4-5 months. After 12 months is up go see a mortgage company that is FHA approved.

Then send me my consultant fee!!!!

LOL Ive done all of the above , already spoken to many people my friend, next is the secure credit card (sadly Ive done that when I was younger once already). Honestly I would be shocked about the morgage, my own lawyer told me 2 years, but Ive had friends try recently without BK try to get morgages and were denied. Im not going to argue with you, but I dont think a year later will be soon enough for banks that are on the brink of going under because of none payment on so many morgages to lend recently BK borrower $400G. Maybe in the future I will speak to you about some ideas, but Ill only trade you training and diet advice for your time, going to be tight with my money from here on in.

**bigt10** · 08-18-2008, 07:11 PM

This makes me upset and its all to common and is about to get bad. Thanks to the Fed we had ballooning bubble in housing with homes rising at ridicously fast rates people began to think they were rich then the market wisened up and we had defaulting loans.

Anyways its a a good thing homes are falling in prices that was a mess. That is just an example of how money creation and artificially low interest rates distort the market.As for what to do i am not sure but i hope people realize that homes are not going back up in value any time soon and they have a long way to fall.

This is very dangerous and i am sure it is going to happen all to much more in the next few years.

To be honest i would sell the house and rent. Renting is still really cheap and your home still has a long way to fall in value. If people think the worst is over for these homes they are wrong. The homes still need to fall back down to their levels around 2000. Before 2000 homes werent rising in value like this. Renting will by cheap take a place like vegas where they literally were building condos and no one even lived in them people were just buying them, people were going around buying 2-6 homes thinking they would get rich. I say sell now pay the debt and rent and dont be a victim of the fed's artifically low interest rates and get caught in a bubble.