Upside Down Mortgage

Mortgage Relief Group

Question: debt consolidation?

What is the best company to go through for debt reduction/consolidation? I have about 6 credit cards and they are all at their max, and I am only 21!

Now before you go judging me and telling me not to spend my money on shoes, this was all for school, basic living expenses, and to help my family. Student loan companies wont loan to me because my credit score wasnt high enough and I didnt have a co-signer, and I couldnt get federal aid because the *said* my mom made too much (39k a year as a single parent of 3 kids, 2 of which are dependant, a mortgage and 2 car payments? dont think so!)

So... Who are the best non-profit debt relief groups to work with, coming from experience please?
also-- does debt reduction show up negatively on your credit report, or does it just show up as a loan?

Answer: Going through a debt management company will lower the APRs that you currently are carrying with each card. I can recommend CareOne because I've used them and I know that they're legal and won't take off your arm and leg. However, from experience, before you do, take the lowest amount card and not include it with the group. The reason for that is: once you use the debt management company, your card account are considered "closed" and you will not be able to use them, only pay them off through the debt management co. So, if you would still like to have some source of credit, keep one open and pay it off yourself. You can talk to the company and let them know what your situation is, and would they give you a lower rate. They may or may not give you one (let them know it's a hardship case: you cannot pay at a higher rate).

Then, you have to change your due dates on each of your cards to the end of the month: 30th is best. Choose a due date for CareOne at 13th, 14th or 15th. What happens is that they deduct the money from your checking account on say, 15th but the card companies won't get it until the 26th. They will lower the monthly payment (one lump sum) to an amount you can live with for the next 5 years.

Good luck and I know from experience, it can happen to anyone.

IVR - Interactive Voice Response with Jason Cardiff

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