We are now a one income family, and finding it more and more difficult to get by monthly, much less save money for the future. We have a 403B from a previous employer that we could close and use this money to pay off credit card bills, some medical bills, and create a monetary cushion to build on.

Generally speaking, it is not a good idea to close a retirement account before retirement age, unless for emergencies. You will need to pay taxes on it, and in addition a 10% penalty. I think you should discuss this with a qualified financial counselor, giving them all the specifics of your current situation. They will guide you better once they have the data in hand. Here is a list of govt approved counselors listed by State:

http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm

Hope this helps.

Republicans are posing a contract with various credit card companies, where if you join the military, your credit card debt will decrease as you serve in the military.

I dont know if this is in addition to the already absurdly high signing bonuses, and paid college tuition.

The problem here, is that even tho we have a volunteer army, we are luring low income, uneducated, and potentially now heavily in debt people. In other words, sending people to war, that the republicans dont really want in society anyway, which is why death tolls mean nothing to bush. You never hear of a rich kid joining the army, but you do see an awful lot of commercials geared towards african american and southern people <white and black, but the south is statistically the poorest part of the country>. This is not a mistake, it is designed to lure a target group of americans to join the military, and republicans, especially bush doesnt care if they live or die.

Thoughts on the Debtors Army?

I have no problem with helping someone clear Credit Card Debt, but you’re right, the INTENTION of this is bad.

Is this the fiscal responsibility that conservatives tout?

http://img250.imageshack.us/img250/5593/hiskid2dm3.jpg

I have got the intrest down to 2% and am paying a very low monthly amount due to our hardships is it possable to get them to reduce the balance

If you are in serious debt, debt settlement is a much better option than bankruptcy. (As you know, debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount.) A bankruptcy will be listed and hold your credit score down for 10 years, while the delinquent payments incurred while enrolled a Debt Settlement program will be there for only 7 years (and in some instance, even less). Another important factor to remember is that a typical debt settlement program ultimately resolves your debts for much less than other debt relief options. And, unlike bankruptcy, you won’t have to sell your house or other assets in order to free yourself of your liabilities.

My sister is debt-ridden and CC companies already forwarded it to lawyers. Can she still work on it and how can she possibly eliminate all these debts?

There are ways to eliminate credit card debts and your sister can still work it out. There are many possibilities now to get rid of these credit card debts.

Check this out and see how you can give your sister the right ideas on how to do it.

Quit using your credit cards and pay them off….. works every time.

I was working a job, $12/hour and living off it, or not, and ended up $3,000 in credit card debt. I just started a better job at $18.5 an hour and need advice on how to best pay off that debt. Wait till the end of the month and use left over money? Pay at each paycheck? How much at each paycheck- a set amount or as much as I can? How do I stop from recharging? I have considered cutting it up but I want to keep it for emergencies or what not, and I’ve tried freezing and having my boyfriend keep it without success. HELP! Thank you
Also, it is all on one card- nothing to really consolidate.

To stop charging: Take the credit card out of your wallet. Get a big bowl. Fill the large bowl with water. Put the credit card in the bowl. Put the bowl in the freezer. You still have the card — but have to thaw it out before you can use it. Then you have to decide if it is enough of an emergency to thaw out the card.

If that does not work…..then you don’t want to be out of debt.

You are in debt because you chose to be. You chose to have a life style that involved debt. You refuse to make the changes to your lifestyle that are needed to get out of debt. I highly recommend Larry Winget’s book: Your Broke Because You Want to Be.

Debt is like fat. It takes time to gain it. It takes time to get rid of it. Either way, you have to work hard – make sacrifices and life’s not fun while you’re doing it.

If you are fat – it because you chose to be. You chose not to make good fat choices. You chose not to exercise. You chose not to do what it takes to get the weight off. (I know….I battle the bulge). Well. Debt’s the same way.

Stop making excuses. Stop spending. Put all extra money on the debt. Accept responsibility for your financial decisions.

Many people are telling me that regardless of that $6,000, now’s the time to buy. My plan is to systematically pay off that card while saving at the same time to have an emergency reserve should push come to shove and I’m in a financial bind. I want to go into the home buying process with only my student loan debt to worry about. Outside of paying off the card in its entirety before purchasing a home, what other options do I have? With the market the way it is and my good credit score (730-ish, debt-to-income ratio around 10%), I’m sure there are options available to help me obtain a home faster.
I should make it known that:

1) I live with my folks who aren’t charging me rent.

2) I have an open to buy of $25,000 in credit.

3) I don’t consider myself in financial trouble. I have a 401K and a T-Rowe money market account I’m making continuous contributions to.

I don’t put any stock in anyone who claims they can time the market, any market – real estate or otherwise. You are on a good path towards building up your net worth, cleaning up your debts and sound fiscal responsibility. The debt payoff and savings plans are a great idea.

Go with your gut and buy on your own schedule. The idea is to not always take the debt banks are willing to lend you, so while there are options available, they may not be in your best interest. Pay off the card and stash away your emergency fund before taking on a mortgage.

I have heard on the radio about a program that, if you have over 10,000 in credit card debt, will cut your debt in half as part of the Recovery Act. Wouldn’t something like that hurt your relationship with the card issuer

The answer to your question is: YES, there is a way to eliminate (more than) half of your credit card debt if you have over $10,000 in unsecured debt.. but it doesn’t have anything to do with The Recovery Act. That ad is most likely a marketing ploy by a debt settlement company. And yes, debt settlement will hurt your relationship with the card issuer, as well as your credit score, and debt settlement companies can’t guarantee those results. I would not do business with any debt settlement company, but not necessarily for the reasons that that most people will give you. Some will tell you that all the debt settlement companies are scams (many of them are, by the way – but there are legitimate companies as well). Others will tell you that you can do just as well negotiating the debt yourself. Still others will give you the ‘holier-than-thou’ answer of ‘stop spending money, get a 2nd or 3rd job, and put everything you make into paying down your debt’ – and they’ll say this without any knowledge of your individual circumstances. If you can manage to pay your debt as agreed, that it almost always the best option. But for some people, their current circumstances simply won’t permit that. And the fact that most credit card companies have recently raised interest rates to 20%, 30% or more (even on historically good paying customers) doesn’t help the situation. So settling debt is a perfectly legal and legitimate method of solving the problem without going the bankruptcy route – which will demolish your credit for years to come.

The reason I tell you that you should not choose a debt settlement company is because – even if you find a high-integrity, ethical company that is truly interested in helping you – there is a far superior alternative available: DEBT RESOLUTION. The concepts are similar, but Debt Resolution provides benefits that debt settlement simply cannot offer, and it does so at a better price, with guaranteed results. There is only room for a limited explanation here, but I’ll try to highlight some of the key (and extremely important) differences between debt settlement and debt resolution.

Basically, debt settlement companies operate by acting as a collection agency for the credit card company. They get involved before the creditor actually refers the account to an outside agency, collect a bundle of money from the borrower over time, take out some hefty fees, and offer the balance to the creditor in an effort to settle the account, hoping the creditor will accept 50 or 60 cents on the dollar. These debt settlement companies are just that – private companies offering a service. They do not and can not represent the borrower.

Debt resolution, on the other hand, is an attorney-managed process whereby an attorney can actually perform the negotiation with the creditor on the borrower’s behalf. This is a legal transaction that only an attorney can perform, and it means the attorney can request a settled mitigation on the borrower’s behalf. There are some critical advantages to this, which I’ll cover shortly.

Key differences between debt settlement and debt resolution:

PERFORMANCE GUARANTEE – Debt settlement companies cannot typically guarantee a settlement amount. Debt Resolution guarantees settlement at 45% of the original debt (which also includes the attorney fees). Also, with Debt Resolution, no additional fees will be requested if the debt increases after the agreement is signed. This is written right into the contract with the attorney, and is very important because once credit card payments get behind, huge fees and interest rate hikes may be applied to the account, and can significantly increase the amount of the debt. Debt settlement companies may take advantage of this by basing their fees on the account balance when the account is settled, not the original balance. And since some plans may take several years to complete, those balances (and the accompanying fees) can increase dramatically.

TAX CONSEQUENCES – Debt settlement companies generally won’t point this out to borrowers, but when a creditor agrees to a settlement, they will generally issue the borrower an IRS Form 1099 for the amount written off. As an example, if the borrower has $50,000 in unsecured debt, and the creditor agrees to accept 60%, or $30,000 to settle the account, they will send the borrower (and the IRS) a Form 1099 which shows that $20,000 write-off as income to the borrower. So even though the borrower didn’t receive any actual cash from the creditor, the borrower may still have to pay taxes on $20,000 of additional income that year. With the attorney-managed Debt Resolution program, the resolved amount is a legal agreement between 2 parties, and since no cash was provided to the borrower in the form of actual income from the creditor, THERE ARE NO TAX CONSEQUENCES.

CREDITOR HARASSMENT – Since debt settlement companies cannot represent the borrower, they cannot promise to s

I am wanting to rid myself of all debt and consolidating under one company at first sounded great. Now I’m getting "cold feet"! Should I continue on w/ them or should I "tough it out" and try and do this myself? The chief thing I like about consolidating is that THEY deal w/ headaches for me, not to mention I’m getting ONE payment as well as lower interest and "re-aging" of accounts. Any advice would be appreciated!:)

They can be very helpful just be sure that they are not for profit companies. Also check the Better Business Bureau for the one you pick before signing anything with them.

i hear radio commercials about: if u have more than $10,000.00 in credit card debt, that u can legally eliminate them, is this possible, and how?

Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one – freecreditreport.hotusa.org