Feb 18, 2009 11:14 am US/Pacific
Companies Erasing Debt: Too Good To Be True?
Question: I have a credit card debt of about $30,000. I am recently retired. I always see these ads about erasing about 1/2 the debt through one of those credit help companies.
Are those really effective? I saw an ad on MSNBC to erase or lower the debt. Is it too good to be true? Is it better to call the credit companies myself and request lower interest rates??
I figure if I could just get the rates lower I could make some dents on the balance, but it seems like the finance charges are almost as much as the payment.
Any suggestions?
- Anonymous
Answer: I would suggest she not go through a loan modification company, but rather contact the lender herself. If she can show the lender that her financial situation has changed, they may be apt restructure her note to make the payments more manageable. It does not sound like she has the disposable income to spend on a mortgage modification company, especially if they end up not being able to help her at all. If possible, you may want to assist her in her interaction with the lender or loan servicer.
- David
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