Hey Guys we need assistance upon this…
I have the sum debt of ,000 in tyro loans & credit label debt. My bi-weekly income is around ,700, however, with profitable subsistence as well as alternative vital expenses, we do not have any income left to compensate off the debt as well as the credit pick up agencies have been after me. Should we record for section thirteen failure or is there the approach to get the 1 low monthly remuneration but any seductiveness for me?
chpt 13 bankryruptcy is better because the montly payment plan is based on your disposable income….something you can afford…you can also include alimony payments in your plan as well as the student loans…dpending on your disposable income you may not even have to pay back any of your credit card debt and other unsecured debt….if you have any vehicle loans you also include them in your plan and usually at a much lower interest rate…last time i filed a bk petition for 13 it was 7% prime plus one…….downside is your credit score will decrease when filing and then increase during the course of the year…..but its better because everything can be included and you make a payment once a month….if for some reason you lose a job or your income changes you can make changes to your plan or convert to a chapter 7….if you went debt consolidation they may be less likely to do that for you….
First go to your library or bookstore
Find a book on credit repair or debt
The student loans are not bad for your credit.
Credit cards are revolving debt and must be paid off.
These books will tell you how to negotiate with your creditors.
Be careful with consolidation companies.
Especially if they have the word NEGOTIATION in them.
They will charge you, and you can end up in court anyway.
Google the name of the company you consider followed by the words:
complaint, rip-off, or scam
Make sure they have been in business for at least a year.
But first visit your library – spend a day reading through the books.
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you cant pay someone to repair your credit so watch out for that oversold scam. get on a tight budget, get rid of things you dont need like cell phone, cable tv…. bare minimum tight budget…. then start sending all you can to pay off the debt… you may need a part time job for some time. you can pay this off, it’s doable, but not easy
I agree with RonBo, please go to the library and find the book financial freedom or the total money makeover by dave ramsey, in it he explains in detail how to get out of debt in your situation. I will assure you, that you can get rid of the consumer debt without filing bankruptcy if you follow the "baby steps" he explains in the book.