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Old 01-09-2018, 01:24 PM   #1
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Default debt consolidation loans

I am wondering if anyone has advice about shopping for a debt consolidation loan? For example, they always ask about income, what if your income is tax free such as disability? Feel free to PM or to reply normally.
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Old 01-09-2018, 02:41 PM   #2
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Default Re: debt consolidation loans

I can't find the one I used. It was over 10 years ago and I don't remember their name. It was non-profit. I'd suggest only non-profit ones. The reason they want to know your income is so that they can come up with a comfortable monthly payment. They will ask you a lot of personal questions and you'll have to be open with them.

Also, you can work out deals with some creditors directly and even renegotiate interest rates. I t can't hurt to call and ask.
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Old 01-12-2018, 10:42 AM   #3
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Default Re: debt consolidation loans

BTW, these are not "loans". You don't get a check. You never get any money. You sign an agreement with the agency that they will pay your debts off (immediately), close these accounts and you will pay them back a fixed monthly amount for a specified amount of time. That's why non-profits are better. Mine charged me $10 month for their service.

EDIT: I found old paperwork. They're called SafeGuard

https://www.safeguardcredit.org/

Although is has been 10 years since I used them so I'm not sure if anything changed about them. Although, they're still non-profit.

Last edited by Zigy; 01-12-2018 at 10:59 AM..
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Old 01-13-2018, 08:11 AM   #4
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Default Re: debt consolidation loans

I would first see if I could come up with my own plan:

https://money.usnews.com/money/perso...o-pay-off-debt
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Old 01-17-2018, 08:40 AM   #5
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Default Re: debt consolidation loans

I tried myself and failed. Not enough discipline, I guess. Doing debt consolidation worked for me. A single, fixed payment every month and all accounts closed so there was no way I temptation to spend money.

Part of the agreement with the agency was that I will not open any more credit cards.
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Old 01-24-2018, 01:37 PM   #6
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Default Re: debt consolidation loans

You do have the option of simply defaulting on your debt. It's not illegal to do that, and you won't get put in jail for doing that. After a certain number of years (which varies from state to state) the statute of limitations on the right of your creditors to collect runs out. At that point, they can't even sue you for the money.

This is an option that I think low income individuals ought to really consider. Doing this will get you a low credit rating, but you might have a low credit rating already, anyway. Being able to keep your income for the necessities of life is more important than trying to save your credit rating, which may be unsavable.

If your only income is from SSDI, issuers of consumer credit can't sue you to make you pay.
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Old 01-30-2018, 12:35 PM   #7
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Default Re: debt consolidation loans

They can sue you if you owe them a lot of money before the statute of limitations kicks in. They sell your debts to a collection agency and they often sue if it's worth the money.

Although, if you get sued and prove hardship the judge may rule in your favor.
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Old 01-30-2018, 09:57 PM   #8
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Default Re: debt consolidation loans

No, Zigy, how much you owe has nothing to do with anything. Creditors who are owed a lot of money have no more rights than creditors who you only owe small debts to. Your check from SSDI or SSI is "judgement proof," as far as consumer debt goes. Read the following article: https://www.disabilitysecrets.com/page1-18.html

Yes, creditors will likely sell your debts to collection agencies. They'll bother you a lot. But they aren't going to pay lawyers to sue you for money that no judge will give them.

Part of why debt collectors call and bother people is because they realize that many people don't know their rights and get unnecessarily scared. Never be scared when a debt collector calls. And know that it is not illegal to hang up the phone on a debt collector.
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Old 02-04-2018, 04:50 PM   #9
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Default Re: debt consolidation loans

I did stop paying most of my credit cards because my only income is Ssdi. This however did not provide relief from the guilt I have about it. I have to live with the guilt for as long as my state allows. Credit scores are important with getting employment and new housing. I wish I had dealt with the debts diffferently
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