Consolidation Loans

I’m wondering if anyone can help. My partner and I are investigating the possibility of a debt consolidation loan (personal loan, whatever you might call it) to get out from under a few things that have added up. My fear is ruining our credit. Is it possible to borrow for ‘debt consolidation’ without it impacting our credit? Has anyone done this and/or does anyone have any recommendations? Thanks in advance!

Yes, you can borrow for debt consolidation without it impacting your credit rating. However, there are a couple of things to watch out for.

First- (and this might sound crazy..) do not close any credit lines! Keep them open, but do not carry a balance. Why? Because 30% of your credit score is based upon how much credit you have available to you. If you close an account, it is less credit that is available to you, and will contribute to lowering your score. Keep your credit cards open but don’t use them if they are a problem for you!

Second- Go visit a credit union! They are usually more inclined to help than a bank, and their interest rates a far better than finance companies! Try to visit a federally insured credit union. You can tell if a credit union is federally insured because the word Federal is in their name, and they have the NCUA logo on their advertising material. Federally insured credit unions cannot, by statute, charge an interest rate of more than 18%. This is far better than some places that charge twice that!

I tried to keep credit cards with no balance and the other day one of them sent me a notice saying that because I hadn’t used my card for a while THEY were closing my account. I tried calling them but they had already closed it. I was not very happy to say the least. Why would paying your bills hurt you? If you are getting a loan to pay off debts, but don’t close the cards (credit cards, I am thinking of here), and don’t use it as an excuse to go out and run up debt on the cards again, you should come out ahead.

Hope that this helps. Good Luck!

Bankruptcy can provide help

Hi all, I am a new member to this great blog. I went bankrupt last Wednesday and am now feeling so much better. I had 35k in debt as a result of an horrendous divorce and remarrying a short while after to a guy who has basically fleeced me.

I am a school teacher so luckily my bankruptcy will not affect my job – I ended up in council accommodation because of my new husband losing his house and us both being sick for 3 years through stress and worry over debts etc. (I have Crohn’s so it WAS genuine) We were told by Citizens advice go bankrupt but when you are on benefits you cannot afford to eat let alone save up £485 for the pleasure of sitting in front of the judge for five minutes.

We gave a solicitor power of attorney and he basically did nothing so it wasnt’ until I returned to work in 2014 I started having to track down all my debts – each one of them having been moved several times to different debt collectors it was a nightmare. So now I just deal with the Official Receiver and no more harrassment from creditors.

So bankruptcy for me was definitely the best thing. I earn £30k and still struggle to live as my husband is on a very small salary.

I live in the USA, but am curious about bankruptcy in your country. After filing do you get a lot of offers for credit? In the USA the predators are out in force offering credit to those who have filed. Of course one needs to read the fine print to see these are dreadful offers with very high fees and interest. Oh, but they try to make them look so good telling the person they will “help them re establish” their credit.

Debt negotiation

This may have been covered previously, but I don’t read the board regularly. My husband and I have 5 cards (4 his, 1 mine) totally $24,000. There is a company offering to negotiate with these companies to accept a lower payoff value. They estimate having us out of debt in 36 months. This sounds good, but it also sounds frightening. Has anyone tried this?

Is bankruptcy for me??

Ok, new member here. I lost my Van about year ago and now Ford Credit is knockiong at my door wanting the rest of the loan. I don’t have it and the reason I lost the Van in the first place is cause I got hurt at work in 2003 and spent the next three years going thru back operation after another. Anyways….they want about $8,200 and I don’t have it to give and its about to go to court, to make us pay?? Do I file or not?? Friends tell me no, because its not like 30 grand or something like that?

Any advice will help.

If you don’t have the money, that $8,200 is not going away. It will gather interest.

Dude, you haven’t told me anything I don’t already know…………. that’s the reason for my question. If I had the money in the first place, I’d still have my Van. When you become disabled and can’t work for a couple of years, you lose your savings trying to survive with a family. I’m trying to rebuild my life but now they want the $8200.00 and I didn’t win the lottery or anything like that….so I’m wondering if Bankruptcy is for me of not???

Good luck to you! On a topic related to your note, it sounds like you should have received Workman’s Compensation if you got hurt at work. I honestly don’t know much about it but I wouldn’t want to see you get screwed out of money you were owed. Is this old debt your only debt? Are you working now and could you reasonably offer to make payments on this? You usually can’t look at just one debt in isolation. You need to look at the overall picture before you decide what your options are.

If the only reason for filing is for this $8,200, then I would say not to do it. If there are other debts as well, that will be discharged in the bankruptcy, it might be worth it. It costs so much money to file now, thanks to the new law, and if you can come up with $100 a month to pay the creditors, you will most likely not be able to just get rid of all of the debts and start fresh. It is not the same as in days of old. Some people still get to start back at square one without owing anybody a dime. Most of the time, you are put into a re-payment plan and the creditors have to take what the court orders, not what they want necessarily and you have to pay. The creditors also get the added bonus of having a formal judgment against you that will definitely be reported to the credit bureaus.

How to decide the state in which a credit-card dispute is calculated

How to decide the state in which a credit-card dispute is calculated or administered? (thus the Statutory of Limitation, etc)

(1) the customer (our) home state, (2) the credit card’s home state, or (3) any arbitration mentions in the agreement?

My understanding is that it automatically falls within the jurisdiction of our state where we live in, ’cause the credit card company has agreed to do business in our home state by soliciting us with its product.

But after reading this kind of experience, now I am wondering if I am right!?

They can’t legally sue you if the debt is passed your state’s SOL. Very few states have a 6 year SOL, so hopefully you are not living in one of those few. If you are not, answer the lawsuit with the time barred defense and the case will more than likely be dropped. This is exactly what I have tried to do for the last 6 years.

Actually I live in PA….so it looks like the SOL is 4 to 6 years, but I’m not sure when they start the clock??? THANK YOU to all that replied!!!

Did MBNA ever turn your debt over to a collection agency?

My question is, did MBNA ever turn your debt over to a collection agency? I thought most creditors did after a certain length of time and then when that happens they can no longer sue. Or am I wrong? Next, can collection agencies sue?

I received papers from a collection agency but have been writing letters and fighting it as they were not the original creditor.

Collection agencies can sue. I’m the perfect example. I had a problem with Bally’s Gym (long story) and my case was sent to Wolpoff & Abramson, combo lawyers/collection agency and they have since sued, won a judgement and now trying to collect. Here is a little article on how this agencies “sueing” processes work:

“First, one false rumor is that Wolpoff & Abramson (W&A) own the National Arbitration Forum (NAF); that is FALSE! They are the single largest supplier of claims to the NAF and at $ 250.00/per claim, it’s easy to see why they win approximately 95-98% of all claims filed. This is further bolstered by the fact that NAF pays their arbitrators (attorneys, retired judges) a fee of $250/hour to handle claims. The rules state they must handle six claims per hour for this $250, so you can understand that any claimant would be lucky for even a cursory review of documents.”

They sent me a letter saying they were going to sue. Then I received no other letters except the final one notarized saying that a judgment had been made against me and that I owe so much money.

I happen to be in a non-garnishing state (Texas), but that doesn’t mean they can’t garnish your bank account if they have the account numbers!! I’ve always only paid with a “money order”.

Good reminder to everyone when paying any collection agency!!!

Bankruptcy is useless

Bankruptcy is useless unless the debt collectors threaten your life, maybe. Just stop paying your credit cards altogether and wait for 7 years for their obsolesce time since your delinquent date. Can they sue you? Maybe, so just lie low until their SOL expired.

It’s just 7 years in ‘hell’, at worst. Then you’re free again.

Really! If you really have nothing, the best thing is to do nothing too. They might sue, but what to collect anyway?

Yes, the credit card companies can and will sue you.They may wait till the 7th year when you owe them a lot more money..Not all the companies do but they can. And if a person can’t pay after being sued, what happens then? This sounds reasonable to me. Maybe, just maybe, some windfall of funds come through and then the bills can be paid off. If you file bankruptcy, that stays on your record regardless.

This is exactly what I have tried to do for the last 6 years. Just this past week I was served with papers from the Sheriff’s Office, stating I was being sued by MBNA. Any suggestions on what I should do? I don’t have any assets for them to take, I’m still paying on my car and don’t own a home. Thanks for any and all suggestions!

I was in your situation just a few years ago. I didn’t want to file bankruptcy but, after careful consideration I decided to take the advice of a lawyer & file. I figured what’s to keep all my other creditors from suing me. You can’t get blood from a stone, but they sure do try.

One of those bastards once convinced me to ask my landlord if it’s ok to be late with my rent. Can you believe that? Of course, that was when I didn’t think I had any rights. After that I started telling them where they could go! I decided it was me or them & it wasn’t going to be me.

Only you can decide what is the right path to follow. Good luck in whatever you decide.