Scott,

I received a letter telling me that I owed a debt of $535.73, but, "if I paid $214.00 immediately," they would cancel the debt. I cannot recall owing this debt. It was made, according to the company (I called this AM) in 1980, under my husband's name. We retired in 1978 and live on Social Security. He has never had a credit card and I have always taken care of our money, since he was in the Marine Corps and overseas so much. I have checked through as many old papers as I have and can't find this debt. When I pay a card off, I always cut it up. I have no cards now, and pay everything by check. Can they collect on a debt this old? I asked them to send any paperwork on this debt to me, but they said, "if I refuse to send a check at once," they will take me to court! What must I do? Thank you for your advice!

--Marjory

Marjory,

Disclaimer: Let me first say that I am not a lawyer. You should always seek the advice of licensed attorney in your state. This response is Scott's (more...)

I need to know if this will really work. It makes me very nervous in not paying my bills so they can be negotiated. I talked to DEBTCO and I got very excited that I could be out of debt in 3 years but when I got the papers (contract) I felt a little uneasy. Should I be uneasy? Should I think more about consolidation? Please help me make the right choice. I really need help with my debt. Thank you. --Jackie

Answer

Jackie,

Thanks for writing!

I do not know all the details for DEBTCO however, I'm certainly familiar with negotiating for payoff terms with credit card banks.

It's been my experience that credit card banks will negotiate settlements with customers who are having trouble. And "having trouble" does include not being able to make their payments.

My impression is that you're a good money manager and can find a way to pay your bills by using your credit options. You don't want to be late because you know that would really hurt your credit history. Worst of all, pay (more...)

I've got SUCH a headache.

If you ever want to see me lose my temper really fast, talk to me about my debt counseling company. I have never had to deal with such a band of galactic level screw-ups in my life. In a roundabout way, I would guess that they are doing the job they are supposed to be doing. They are curing me of any kind of desire to ever be in debt again.

I tell you it would have been better if I had never even started this venture. Honest to God! These people are horrible. I think that if I had gotten a home equity loan at a lower interest rate, not only would I NOT have the problems that I have with these people, but my credit record would have improved immediately, and I would be able to take a tax deduction on the interest payments on my loan. Which is something that you can't do with a credit card loan.

I remember the day that I spoke with Consumer Credit Services of South Florida, Inc.* (www.godebtfree.com) I found them via the internet (something I'd advise e (more...)

Once you've found yourself in debt it may feel like a downward spiral from which you don't know how you'll ever regain your footing.

It's hard enough to find simple answers and may seem impossible when the collection agencies constantly call your house and threaten the security of you and your family.

Ultimately your decision to choose a debt consolidation loan, a debt management program, or a consumer credit counseling program to consolidate credit card debt should be based on your finances and your monthly earnings.

President Bush says he will sign the bankruptcy reform bill that will require credit counseling before individuals file for personal bankruptcy-

Congress moves to make credit counseling mandatory before filing bankruptcy.

Debt Consolidation can:

Help avoid filing bankruptcy

Eliminate creditor harassment

Lower debt payments up to 50%

Provide one monthly payment

The most important benefit of debt consolidation is that it can offer a fresh sta (more...)