Credit Counsellor Question

[Flames09]

Okay here goes my story, I'm in a lot of involuntary/voluntary debt, which includes school loans and helping out my family. I'm on a breaking point right now, I'm actually drowning in debt, I've just dropped out of University so I can work fulltime and payback all of my loans. I'm under a ton of stress I've looked at consolidation loans but I dont think I'd get approved with the amount of debt I have and I dont exactly have a great job or assets, has anyone here worked with Credit Cousellors before?? do you no longer have access to the credit cards? Any suggestions are appreciated, please and thank you.

[Bleeding Red]

I contacted a Credit counselor organization just to see what the deal was (My sister was having some money issues). they are ok if your debt is mainly with credit cards and simple bank loans. The counselors can negotiate a much lower interest rate with the card companies and consolidate your debt into one manageable payment, but they do charge a monthly fee to keep your file going.

For mortgage and student loan issues, I'd look into spending an hour (usually free) with a Bankruptcy Trustee. Their advice is usually pretty solid and you likely won't have to declare bankruptcy (though doing so does not have the same stigma it did in the past). And yes, usually the first thing to go is the credit cards. Try to avoid the "payday Loans" places, their rates are atrocious and if you fall behind it could take years to get out of the hole. Have your parents maxed out their home equity? Adding $1000 to that at this point seems better than losing the house.

[The Goon]

I attended a seminar by these folks and they seem decent. They also are quoted all the time on the news:

http://www.creditcounselling.com/

[Ozy_Flame]

Are there any relatives and/or friends who can help you repay your debts at little to no interest with no specific timeline or minimum payment? There's alot of generous people around, and not getting involved with the debt consolodation companies and banks might be a good thing.

[Bleeding Red]

Originally Posted by Ozy_Flame

Are there any relatives and/or friends who can help you repay your debts at little to no interest with no specific timeline or minimum payment? There's alot of generous people around, and not getting involved with the debt consolodation companies and banks might be a good thing.

That being said, many religious institutions have a 'free-loan' society. Check with your church, mosque, or synagogue.

[moon]

Originally Posted by fotze

The mortgage payment was a $1000 short? That implies it is at least $2000. Have you (your family) thought about selling and moving to a smaller house? That seems like a pretty big mortgage if your struggling to make the payments.

Exactly. If you are helping them make payments and they still are $1000 short it seems that mortgage is way too big. If you and they are having financial difficulties why are you/them looking at a mortgage that is more than $1000 to start with let alone one which has you 1000 short despite your best efforts to get it paid.

[Flames09]

Originally Posted by moon

Exactly. If you are helping them make payments and they still are $1000 short it seems that mortgage is way too big. If you and they are having financial difficulties why are you/them looking at a mortgage that is more than $1000 to start with let alone one which has you 1000 short despite your best efforts to get it paid.

Because they could afford it. They went through a rough year in 2007, they never defaulted on any payments up until December 2007, January 2008, February 2008. My take was they shouldn't have to move, they caught up with the payments because they finallly got back on track with their life, steady good income is back, bills are caught up. The $1000 is back from January the only amount they are having trouble on because there is a deadline. The new jobs paycheck just won't arrive in time that was the only problem. Anyways with that said that seems to have worked out because of a time period they give you after they file the foreclosure papers and a deadline to pay the amount remaining along with $600 lawyer fees. So basically I'm just saying the $1000 seemed to be bad timing because they had just caught up and paid of 3 months worth of the mortgage.

I appreciate all the responses and looks like I'll be talking to a credit counsellor some time today, because my debt is mainly on 1 credit card and I can't seem to get it down.

[ken0042]

A credit councillor will put you on a VERY tight budget for the length of time it will take to pay off you debt. Seems like quite the hassle over $1000.

If your parents are looking at forclosure for the sake of $1000, maybe an option like Trans Canada Credit would be better? Yes, 30% interest is steep. But a 1 year term will cost you $170 in interest and your payment will be just under $100 per month. The $170 in interest is a small price to pay vs. selling the house. If you do go with them, make sure you decline all the other fluff they will try to sell you. And if they do cut you a cheque for how much that fluff was, put it right onto the loan that very day; don't be tempted to spend it. They make their money on knowing what buttons to push with people with less than perfect credit/ cash flow.

[Flames09]

Originally Posted by ken0042

A credit councillor will put you on a VERY tight budget for the length of time it will take to pay off you debt. Seems like quite the hassle over $1000.

If your parents are looking at forclosure for the sake of $1000, maybe an option like Trans Canada Credit would be better? Yes, 30% interest is steep. But a 1 year term will cost you $170 in interest and your payment will be just under $100 per month. The $170 in interest is a small price to pay vs. selling the house. If you do go with them, make sure you decline all the other fluff they will try to sell you. And if they do cut you a cheque for how much that fluff was, put it right onto the loan that very day; don't be tempted to spend it. They make their money on knowing what buttons to push with people with less than perfect credit/ cash flow.

Trans Canada Credit?? I've never heard of them before? We would be willing to fork up the interest rate because of a better situation 1 month from now. Can you give me more information on them?

[ken0042]

Looks like since I last dealt with them they changed their name to Wells Fargo. They should have several locations in Calgary.

[fredr123]

A little off topic, but I was in chambers today and there were 25 foreclosure matters on the list. TWENTY FIVE. The master gave one of the lawyers a lot of grief for resorting to foreclosure over a single missed payment.