Credit Counseling

[Brian in Mesa]

His biggest point on bankruptcy is - if you go see someone about bankruptcy advice...they're most likely going to advise you to file...because that's the only way they (the adviser) earns their pay.

He says you're better off writing everything down, negotiating on your own with creditors for settlement/payoffs when possible, or getting your income up and paying everything on your own. He is really about financial responsibility. You got yourself in the hole and you should feel obligated to repay what you owe.

 

[dreamcastrocks]

No, you really don't. If anyone that had weight issues ate like you did, they'd do nothing but gain.

Someday your metabolism will slow down, and then maybe you'd have room to comment.

Yes, I really do. Someday, my metabolism will slow down, and I will still have room to talk because I won't allow myself to be a certain way.

I can give the same advice as someone who has been overweight, but because I haven't been overweight, my opinion isn't valid? Pfft.

You don't have to direct experience something in order to be knowledgeable about a subject. You can be a good coach without ever playing football. A psychologist can understand trauma, etc.

 

[Linderbee]

Yes, I really do. Someday, my metabolism will slow down, and I will still have room to talk because I won't allow myself to be a certain way.

I can give the same advice as someone who has been overweight, but because I haven't been overweight, my opinion isn't valid? Pfft.

You don't have to direct experience something in order to be knowledgeable about a subject. You can be a good coach without ever playing football. A psychologist can understand trauma, etc.

We'll just agree to disagree.

 

[conraddobler]

His biggest point on bankruptcy is - if you go see someone about bankruptcy advice...they're most likely going to advise you to file...because that's the only way they (the adviser) earns their pay.

He says you're better off writing everything down, negotiating on your own with creditors for settlement/payoffs when possible, or getting your income up and paying everything on your own. He is really about financial responsibility. You got yourself in the hole and you should feel obligated to repay what you owe.

I agree with Dave on a ton of things and he's a great force for good, I do however differ with him because of real life experience dealing with customers.

Most BK's are caused by ridiculous medical bills, death or disability of an earner and that's been the truth for a long long time and still is.

Dave is only focusing on the media worthy segment that files due to financial mismanagement, and although it's sizeable, it's not the main problem.

These many times file after exhausting huge amounts of reserves trying to fix things that are out of their control, and most people believe it or not are respectable and reasonable in budgeting other than their savings rate which has gotten better recently.

So Dave is a force for good but a ton of what's the best thing to do has to do with how you got to where you are, you shouldn't feel so terrible about taking a legal remedy to a situation, of course it should be a last resort but it's there for a reason.

People will suffer a ton, and I mean a ton, I've seen older people literally starving themselves rather than file, with no hope of paying down their debts at all, they're on a fixed income alone in the world with relatively no one to help them.

Reality says that Dave is right, most of us live our lives way too optimistically not planning for things that could happen but even the best plans don't always work out and at that point you should consult an attourney.

 

[Avondale Red Rage]

Just finished week two of FPU that is being hosted near our home. We are very excited about the thought of being debt free! It is the first time the Mrs and I seem to be on the same page when it comes to budgeting, saving and eliminating debt.

Long way to go but it starts with baby steps!

 

[thirty-two]

Just finished week two of FPU that is being hosted near our home. We are very excited about the thought of being debt free! It is the first time the Mrs and I seem to be on the same page when it comes to budgeting, saving and eliminating debt.

Long way to go but it starts with baby steps!

Awesome!!! Keep up the good work! Once you get started, it's amazing how much debt you'll be able to pay off. Once you get that snowball rolling, it really has some power.

Good luck to you! Keep us updated on your progress.

 

[Jersey Girl]

Just finished week two of FPU that is being hosted near our home. We are very excited about the thought of being debt free! It is the first time the Mrs and I seem to be on the same page when it comes to budgeting, saving and eliminating debt.

Long way to go but it starts with baby steps!

Good luck!

I'm finding it's a process and a long one at that (for me, anyways). Just gotta keep trudging along.

 

[Brian in Mesa]

Just finished week two of FPU that is being hosted near our home. We are very excited about the thought of being debt free! It is the first time the Mrs and I seem to be on the same page when it comes to budgeting, saving and eliminating debt.

Long way to go but it starts with baby steps!

Awesome !!

Dave is not only money-smart...he's a pretty good speaker/entertainer. FPU is great and so is Dave's radio show.

 

[BigRedRage]

FYI guys I have worked in debt relief for four years now. Credit counseling is owned by credit card companies and is just another form of collections, you pay 100% of the debt, a lowered interest rate and get 3rd party assistance tacked on to your credit for a minimum of 4 years. I can help you discuss all of your debt relief options any time at 602-427-9566. Your options are bankruptcy, debt settlement and credit counseling, my company happens to be the leader in the industry and because you are calling me personally you wont go toward my close rate so I wont try to sell you anything you dont need.

Take care and good luck, its a tricky situation.

 

[Brian in Mesa]

Your options are bankruptcy, debt settlement and credit counseling...

Or you get smart with your money, write everything down, have a plan, and attack it on your own thereby getting yourself out of the mess you've created.

 

[Gaddabout]

I agree with Dave on a ton of things and he's a great force for good, I do however differ with him because of real life experience dealing with customers.

Most BK's are caused by ridiculous medical bills, death or disability of an earner and that's been the truth for a long long time and still is.

Dave is only focusing on the media worthy segment that files due to financial mismanagement, and although it's sizeable, it's not the main problem.

These many times file after exhausting huge amounts of reserves trying to fix things that are out of their control, and most people believe it or not are respectable and reasonable in budgeting other than their savings rate which has gotten better recently.

So Dave is a force for good but a ton of what's the best thing to do has to do with how you got to where you are, you shouldn't feel so terrible about taking a legal remedy to a situation, of course it should be a last resort but it's there for a reason.

People will suffer a ton, and I mean a ton, I've seen older people literally starving themselves rather than file, with no hope of paying down their debts at all, they're on a fixed income alone in the world with relatively no one to help them.

Reality says that Dave is right, most of us live our lives way too optimistically not planning for things that could happen but even the best plans don't always work out and at that point you should consult an attourney.

I have to politely question how much of Dave's stuff you've read, because he's often recommended bankruptcy for real hardship cases. He's not against it. What he does is challenge those who have the ability to fix their own problems to buckle down and fix them: "beans and rice, beans and rice, beans and rice."

The reality is the average American gets into debt because they're given a license to borrow before they're old enough and mature enough to do the math and make a responsible decision. Like someone who racks up $100K in student debt to pursue a college degree that will never provide them with an income to pay it off in a reasonable time (or perhaps even in their lifetime). I also know firsthand that people who get into a debt bind tend to overestimate their liability and underestimate their ability to pay it off, because it's not instinctive to live below their means -- although a lifetime of bad debt management usually ends up by destroying one's quality of life without the benefit of choice.

Dave's not even against borrowing money for things like primary home purchase. It remains the primary financial investment for most people and, borrowing is the only way most people could ever afford a home before their children mature, and in many markets, it's still more financially sound than renting over the long-term. What he advises is to not buy while you're still paying off other debt. He has guidelines for borrowing for a home:

• You are debt-free and have an emergency fund of 3–6 months of expenses.
• You have saved at least a 10% down payment. A 20% down payment is preferable to avoid Private Mortgage Insurance (PMI) payments.
• If you’re married, you’ve been married at least one year. Don’t add the stress of a home purchase to a brand-new marriage, and never buy real estate with anyone you are not married to

Frankly, the first two are the same advice mortgage brokers USED to give first-time buyers during the qualification process.

 

[Jersey Girl]

Or you get smart with your money, write everything down, have a plan, and attack it on your own thereby getting yourself out of the mess you've created.

 

[BigRedRage]

Or you get smart with your money, write everything down, have a plan, and attack it on your own thereby getting yourself out of the mess you've created.

Sure Brian, if you havent had a major loss of income or big medical issues that is still an option. I talk to hundreds of people a day and there are many reasons for debt troubles IE: 80k limit with only 20k spent, CC companies suddenly raise you to 20%+ interest without warning and for no reason and lower your limits to what you spent crushing your credit and making your payments baloon out of control.

What you said is the best option but in this economy it is rarely the option you have. That is just one of the many scenerios I get every single day.

 

[Linderbee]

Sure Brian, if you havent had a major loss of income or big medical issues that is still an option. I talk to hundreds of people a day and there are many reasons for debt troubles IE: 80k limit with only 20k spent, CC companies suddenly raise you to 20%+ interest without warning and for no reason and lower your limits to what you spent crushing your credit and making your payments baloon out of control.

What you said is the best option but in this economy it is rarely the option you have. That is just one of the many scenerios I get every single day.

It is weird how cc companies work in that regard. DCR & I bought some furniture & got 0% interest until 2013...smoking deal. We work the 0% interest as much as we can--have never paid a dime in interest because we always pay it off.

At any rate, we receive a notice in the mail that they've reduced our credit limit on the card (big deal--we're never using it again anyway--we now have all the furniture we need) because of "changes in our credit". It's stupid. We have made every payment so far early, and more than what we're supposed to be paying, yet somehow we aren't as good as we were.

I know, I know, debt to income ratios, blah, blah...but we hardly have ANY cc debt. We try to keep them paid down. The fact that they were even reviewing where we were at was weird to me. Oh, well. Not a big deal, but just an example of how they change things on you, for virtually no good reason.

(btw--you think 20% interest is bad--when I first started rebuilding my credit, my very first unsecured credit card--$300 limit, lol--was 60% interest. I didn't even know that was legal. Needless to say, I don't use it.)

 

[BigRedRage]

It is weird how cc companies work in that regard. DCR & I bought some furniture & got 0% interest until 2013...smoking deal. We work the 0% interest as much as we can--have never paid a dime in interest because we always pay it off.

At any rate, we receive a notice in the mail that they've reduced our credit limit on the card (big deal--we're never using it again anyway--we now have all the furniture we need) because of "changes in our credit". It's stupid. We have made every payment so far early, and more than what we're supposed to be paying, yet somehow we aren't as good as we were.

I know, I know, debt to income ratios, blah, blah...but we hardly have ANY cc debt. We try to keep them paid down. The fact that they were even reviewing where we were at was weird to me. Oh, well. Not a big deal, but just an example of how they change things on you, for virtually no good reason.

(btw--you think 20% interest is bad--when I first started rebuilding my credit, my very first unsecured credit card--$300 limit, lol--was 60% interest. I didn't even know that was legal. Needless to say, I don't use it.)

i dont look at rates all I know is what hundreds of people tell me daily and ive never heard anything over 30% so yes, that is strange.