Has anyone had any dealings with "debt validation " companies?
I am so ashamed that I have gotten myself so deeply in debt with two of my credit cards. I am keeping up with the payments and am managing to make more than the minimum payment each month. But, I'm fearful that I will not be able to keep it up much longer. I've not used these two cards in about a year.
I am familiar with the Dave Ramsey "Financial Peace University" method of getting out of debt and thought about trying that. But, it seems that I will be paying for several years in that situation.
Is there a better way to go about getting out of debt?
I've heard of:
Debt Management
Debt Elimination
Debt Settlement
Debt Validation.
Can anyone explain "debt validation" and tell me if it is any better than "settlement", "management", "elimination"?
I don't think I want to go the bankruptcy route. Has anyone gone that way and let me know if they recommend it?
Below is an explanation of debt validation.
I've been through bk twice. Once as a repayment plan which is what most people now have to do, and once under chapter 7 which is what the Bush administration did away with for most of the honest hard working people this country.
I only recommend it if you have learned your lesson about being responsible for incurring debt. I was driven to this as I was taken to court by my ex over child custody. I ran up $25,000 in attorney fees and other fees for defending my kids against a crazed mother. She was institutionalized 3 times, but that is another story.
If your debt problems were not of your own making, then I would recommend that you find a good bk attorney. A fresh start can occur at any age. I was 51 when I declared my chapter 7.
Good luck.
February 4th, 2009 at 7:56 am
THe only "validation" i've heard of is if you call the creditor (collection agency) and ask them to verify the debt and prove its yours.
If you are making at least the minimums, at least your credit score is fine. What I could suggest is (if your score is still over say 680) apply for another credit card, but one that has a 12month 0% Interest balance transfer rate with no fee (or a capped fee).
With this, transfer your balances to the new card, and dont use the old cards anymore (or use them for like $5-10/month and pay off). You'll be saving the interest and can still make the payments you've been making. It should help reduce your debt soon.
And no, do NOT close the old cards, as that will bring your credit score down. As long as there's activity the banks wont close them either (unless they've said pay it and we're closing?). You dont have to spend much, just $5-10/month and pay it. That will show a "Last activity date" as the most recent date.
References :
February 4th, 2009 at 8:37 am
Below is an explanation of debt validation.
I've been through bk twice. Once as a repayment plan which is what most people now have to do, and once under chapter 7 which is what the Bush administration did away with for most of the honest hard working people this country.
I only recommend it if you have learned your lesson about being responsible for incurring debt. I was driven to this as I was taken to court by my ex over child custody. I ran up $25,000 in attorney fees and other fees for defending my kids against a crazed mother. She was institutionalized 3 times, but that is another story.
If your debt problems were not of your own making, then I would recommend that you find a good bk attorney. A fresh start can occur at any age. I was 51 when I declared my chapter 7.
Good luck.
References :
http://en.wikipedia.org/wiki/Debt_validation