Posts tagged "Debt Consolidation"

Refinance for Debt Consolidation

Read more…

How does the debt collection process work on an unsecured loan?

I am 105K in debt(mortgage, student loan, car and the unsecured loan) and lost my former job due to lack of work. I got a new job but I am out 15K/yr. Through much juggling, I am paying off everyone except the unsecured loan on which I am paying 30/month(they want 260/mth) and they are unhappy I am paying them so little and threatening to sue me. I am trying to sell the house to pay off the mortgage and the personal loan and this is still at the original lender level. I am hoping I will get to work with a collections agency first since I can offer them the 30 I am now paying the creditor and when I sell the house I can pay the bill in full and have the credit bureau remove the blotch from my credit by showing evidence of payment. Do they go to collections or sue first?If they do sue,will they garnish my wages or freeze my checking account(no savings) or both? How does the debt collection process work on an unsecured loan?
Tried debt consolidation but my house is not worth enough to do it and having other debt attached to it would reduce my chances of selling the house and paying off the mortgage and the personal loan. I am really looking for info on how the debt collection process works,not how to get out of debt. I have that part figured out unless I get sued. Thanks
Thanks Taja but I am asking what the collection process is. I owe 105K out of which only 9K are unsecured debt. I am paying everybody except for the unsecured debt (to preserve my assets) and paying this unsecured creditor 30 a month hoping to sell my house to pay of the mortgage and the unsecured loan which will get rid of 64K off my debt and put approx 4 K in my pocket to move to an area with a better pay labor market. I am trying to find out (by learning how the collection process works) if I am going to have time to get this done before I have to worry about their coming after my wages and/or checking bank account. In other words, if I can work with a collection agency to which I can offer payments and pay the 30 I am now paying until I can sell the house. I already tried debt consolidation and I can’t get a loan for 105 K with a house that is worth 79K as the only collateral. The rest I owe is my car and student loans which must be paid or they will be worse than this creditor.
BBOYBALL: My mortgage is in perfectly good standing since I pay that before I even buy food. It is the only assett I have and I want to move to an area where I can work without having to commute an hour to do so. That is why I am selling the house: to move and to pay off the mortgage and the personal loan I took out to buy a new furnace and remove asbestos. I am willing to sell for 76K.

Incoming search terms for the article:

• can they collect on an unsecured loan
• how do i get out of collections
• how to collect on a unsecured loan

Debt Consolidation Elimination

Debt consolidation elimination is a way to reduce your credit debt and pay off the bills. We know that it’s good to consolidate debt (at least that is what we keep hearing from everyone). In fact, the first step towards addressing the problem of debt is to consolidate credit card and other debt. Now, how do you do to consolidate debt? Should you just go with that attractive ad in the newspaper that says ‘…the lowest APR in the town is available here’?

The most important step to debt consolidation elimination, really, is to keep your eyes and ears open. There are always a number of offers available for you to choose from. The credit companies keep coming with new and more attractive offers asking you to consolidate debt with them. However, you must note that the APR quoted in bold, e.g. 0% APR, is applicable only for a short term (3-9 months). The long term (or the standard) APR is different. So, when you go looking for a credit card to consolidate credit card debt, you must be keenly looking for these 3 things (in terms of APR) – introductory APR, introductory APR period and the standard APR. Let’s see how each one is important.

Introductory APR is probably the most attractive thing to look for when you are looking to consolidate credit debt. If you consolidate credit debt to a card that has a low introductory APR e.g. 0%, the first thing you get is a breather/relief in terms of the rate at which your credit card debt has been growing. Based on how long that 0% APR period is (generally you will look to consolidate credit card debt with a credit card supplier who offers 0% initial APR), you will at least be able to temporarily break the growth rate of your debt.
You should not ignore the standard APR when you consolidate credit debt. This is the interest rate that will be applied to your balance after the expiry of the introductory low APR period that was given to lure you to a debt consolidation elimination program. If the standard APR is too high and you know that you will not be able to clear off the entire debt during the low APR period, that deal is probably not the best for you to consolidate debt. However, if you think that you will be able to clear off the debt during that period, you can make some compromises on the standard APR of the debt consolidation elimination program to.