Ask Terry Questions Debt relief — the right move?

Debt relief — the right move?

By Terry Savage on September 07, 2020 | Credit/Debt

I may have screwed up, I have credit card debt . I am 67. Trying to pay the each month but with the interest I will never make it. I tried for loans but denied. I was connected with Provident Solutions. And signed up, But now I don’t know if I did the right thing. They said to stop paying on the 2 maxed out cards Pay them a fee each month instead And they assure me it will be ok, I woke up 4am with a panic attack, Did I make a really bad choice here

Terry Says

Yes, it was a mistake — because while they collect their fees and try to build up cash so they can negotiate a release from your debt, your credit will be ruined since you are not paying.

Immediately contact the National Foundation for Credit Counseling at 800-388-2227 and have a conversation with them over the phone. They can give you advice, or help y9u with a free debt repayment plan that lowers your interest rates. You pay them one monthly amount and they distribute it to creditors who agree to wave late fees, charges, etc. If you go that route your credit will be impacted, but not ruined.

If you just signed up with this debt consolidation company — and note that they are not allowed to collect fees in advance under the law — tell them you are not going to pay them.

You CAN do this yourself if you follow this simple formula to get debt free in less than 3 years.

Write down the current minimum payment on each credit card. If you pay DOUBLE that same amount every month (not double the NEW amount) and DON’T CHARGE ANOTHER PENNY — Then the cards will be fully paid off in less than 3 years! If you can’t do both, then do it with one card.
Maybe that means you have to take an extra job. Lots of working mothers are looking for childcare in these tough times. Or drive seniors to get groceries, or become an Instacart grocery shopper. Every extra penny you earn should go toward paying down debt.

You can do this if you’re willing to work at it.

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