Can someone recommend a debt management program?

Can someone recommend a debt management program?

Postby achishar » Tue May 10, 2011 6:03 am

I had previously anticipated cost of living adjustments (COSA's) for both the VA disability (I'm a disabled veteran) and Social Security disability. Thanks to the economy, my projections have been laid waste as the government has friezed those adjustments the last three years. Where I once projected having an extra $400 a month, I'm now finding myself short $45 a month and I've been borrowing against my credit cards to make all my debt payments. Keep in mind that non-credit card creditors don't care that I haven't been getting the COSA's and these bills (utilities, groceries, security, insurance, etc) keep increasing, not just annually, but some have increased monthly.
I have three credit cards: two of them charge around 21% interest and the third around 30%. I've tried to get the interest reduced and have succeeded in some cases, but after a period of time the rates go right back to what they were before. I've tried debt consolidation with my commercial banks (the bank I hold my mortgage with and the bank my checking account is with), but have been denied help by both.

So, I'm hurting.
My question is ... Is there a debt management program that you can recommend that would help me out? One that won't hurt my credit?

Or am I better off declaring bankruptcy?
I really want to pay all my bills and don't want to leave my creditors holding the bag, so bankruptcy would be the last option if there were any other way.
If it helps, I'm a disabled vet (certified 100% thirteen years ago).
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Can someone recommend a debt management program?

Postby marchland90 » Tue May 10, 2011 6:06 am

If you're overwhelmed with credit card debt and you've exhausted all self help options like slashing expenses to the bone, selling valuables and getting extra work, then there are really only 2 options: Entering a debt management plan through a non profit credit counseling firm like NFCC or filing for Chapter 7. NFCC can negotiate reduced payments and interest but NOT settlements. Referral at: - If this does not work out, the other option is Chapter 7 bankruptcy.

Stay away from any debt consolidation firm that promises to cut your debt and payments in half. These firms work by having you deliberately default on your credit cards to settle for half. This is a risky process and your creditors might respond by taking you to court to get a judgment.

Don't feel bad if you have to file for Chapter 7. Credit cards/banks are not exactly hurting right now and the CEOs of your credit card companies will not end up homeless if you file for bankruptcy.
** Keep in mind that SSDI and VA disability are exempt from garnishment for credit card debts. If your creditors ever took you to court over these debts, they could not touch them. However, if you have a house, then they could put a lien on it.
If you do not own a home, then you are judgement proof and your creditors are legally powerless over you. This does not mean that you no longer owe the debt...what is means is that if you stopped paying and they took you to court, they would be left with a judgement that could not be enforced.
If this is applies to you, then you do not need to consider filing for Chapter 7.
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Can someone recommend a debt management program?

Postby roosevelt70 » Tue May 10, 2011 6:07 am has reviews of top debt consolidation companies that can even do student loans.
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Joined: Mon Jan 17, 2011 1:17 pm

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