What if you owe too much? | Consumer Debt Group


What if you owe too much?
If you've followed the tips on our website and you still can't figure out how to make ends meet, there are other things you can do to get out of debt. Reputable creditors don't want to send accounts to a debt collector. They would rather work directly with you. If you can't make your payments, have Consumer Debt Group work with you and call your creditors before they call you. Consumer Debt Group will arrange a payment plan for you. Contact us for a free consultation with one of the Consumer Debt Group's debt arbitration experts.

Working with your creditors
Don't be afraid to work with your creditors to devise a way to pay off your debt. Come up with a plan you can present to them. You may want to pay an equal amount monthly to each creditor, or pay more to the creditor changing the highest interest rate. The first step is to call each creditor. Tell them you want to pay in full but you need more time to pay. Explain your problem. Mention anything positive, like disability benefits beginning soon or a pending job offer. Let them know you've taken steps to reduce your spending. Present your plan and ask for their help. Most creditors will help. They want to get paid, so they will work with people who are truly interested in getting out of debt. For the record, send each creditor a letter a letter with the details you've discussed. If you can, include a payment with your letter. Even a small payment shows you're serious about paying back the debt in full. Not all creditors will react well to your call, but persist. Don't get emotional. Use logic and be reasonable. Be prepared to compromise.

Debt reduction options
Legitimate credit repair involvers either rescheduling debts or correcting inaccurate credit information. Beware of credit companies that offer more. It is illegal to remove or change credit history that is accurate. Creditors may offer you one of several options: Loan extension:This is an extra 30 or 60 days to make a required payment. Some creditors require no payment in that period; other may want partial payments or ask you to pay interest or service charges. Check to see if the extension will be reported as a delinquency to the credit bureau. Loan revision:The lender may be willing to lower your monthly payments by extending the term of the loan. You may pay more interest, but lower payments may enable you to make payments on time. Loan refinancing: A refinanced loan is a new loan, not just a revision. The new loan will have a new payment schedule and a new interest rate reflecting current interest rates. Consolidation Loan: This is a new loan designed to pay off a number of existing debts. The new monthly payment will be less than the total amount you' re paying now, because you'll be extending your payments over a longer period of time. A consolidation loan can help take care of payment problems before you become delinquent. But it can be a problem if it makes you believe you have extra money to take on new debts. Home equity loan or credit line: If you're a home owner, your lender may extend you a line of credit or a loan secured by the equity in your home. These usually have lower interest rates and the interest may be tax-deductible. But be careful-if you land deeper in debt, you could lose your home.
Additional resources The Consumer Debt Group (CDG) is a debt settlement service that can direct you to a credit counselor who can advise you in accordance with Fair Credit Reporting Act and work with your creditors to accept reduced payments. Call 1.800.340.7594 or go to our program. The Federal Trade Commission can also help with credit-related issues. Call 1-877-FTC-Help (382-4357) or visit online at ftc.gov.