Questions on debt repayment

[Seahorsepower1]

I have a buddy that wreck his credit when he was younger. He current just got his credit report from Equifax and he owns money to a couple of companies. He doesn't have the funds to pay for it in full. He was wondering where he can go in calgary where they do the do monthly payments. Can anyone provide info about this or the best way to solve this.

Thanks all beyonders for looking and information

[Graham_A_M]

Go to a bank with all the info, and get it "consolidated". He'll have one low monthly payment directly to the bank.

[justincalgary]

Also, if it is from quite awhile ago, he can just contact the companies to see if they are willing to take less just to settle it and close it. Just make sure they take you off of equifax.

[Ajay]

You could also try a credit counseling company. They often can arrange suitable payments for outstanding debts by working with the companies owed money and with the person owing the money.

I think you should be able to open the phone book and find a couple companies in there that specialize in that type of thing.

[bignerd]

Do not do an orderly re-payment of debts! That is what the credit counselling people will do. This is dangerously close to bankruptcy and when he goes to get a mortgage he will have to A) complete paying the orderly repayment of debts
B) most likely wait two years after paying off the order-many lenders will not touch you until then
C)put more money down on a home

I would say he is better off contacting the creditors directly himself and making arrangements, even if he only pays $5 a week to them or something. Ask about waiving penalties, better interest rates, settling with them for a lower amount if he pays XXX amount of dollars in a lump sum etc.... the phone numbers for the creditors can be found on the credit bureau or via google.

He may not be able to be approved for a consolidation loan at a bank if his credit is bad.


He will also need to start to re-establish his credit from here on in.

[Whiley]

isn't that basically what people do during bankruptcy?

Originally posted by bignerd I would say he is better off contacting the creditors directly himself and making arrangements, even if he only pays $5 a week to them or something. Ask about waiving penalties, better interest rates, settling with them for a lower amount if he pays XXX amount of dollars in a lump sum etc.... the phone numbers for the creditors can be found on the credit bureau or via google.

[bignerd]

No.

[Kloubek]

If he truly has no money, and has already destroyed his credit, this is what I would do:

Contact the companies directly, simply saying he has no money and cannot afford to pay them back any time soon. They will offer one of two things:
a) a payment plan he CAN afford. Even if it's very little per month.
b) a reduction on the amount owed, and a payment plan he can afford.

Seriously - creditors will often "forgive" some debt if you cannot pay. Yes, this screws your credit. But it sounds like he already has beyond repair, and will need to wait years to fix it anyway.
I guess the intention is that they at least get SOME of the money back, rather than none at all...

[canadian_hustla]

Originally posted by bignerd
Do not do an orderly re-payment of debts! That is what the credit counselling people will do. This is dangerously close to bankruptcy and when he goes to get a mortgage he will have to A) complete paying the orderly repayment of debts
B) most likely wait two years after paying off the order-many lenders will not touch you until then
C)put more money down on a home

I would say he is better off contacting the creditors directly himself and making arrangements, even if he only pays $5 a week to them or something. Ask about waiving penalties, better interest rates, settling with them for a lower amount if he pays XXX amount of dollars in a lump sum etc.... the phone numbers for the creditors can be found on the credit bureau or via google.

He may not be able to be approved for a consolidation loan at a bank if his credit is bad.

He will also need to start to re-establish his credit from here on in.

this guy speaks truth. In the bank's eyes credit counselling is just as bad as bankruptcy.

R9 is bankruptcy (written off), R7 is credit counselling. you don't want those on your bureau

[krazykhoja]

it seems like his credit is for the most part shot...however if he has a job (even if he doesn't have a lot of money)...like was suggested above he should go to a bank and apply for either a consolidated loan or a LOC...and then pay those interest payments off per month...or if he cannot get approved by himself then to get a co-signer on a loan/loc...i work at a bank and have seen ppl do this before...generally with CC debt as the interest on a loan/loc is usually lower than that of a CC...but even in this case....depending on the amount he owes if he can even get a loan/loc to clear a couple of the debts then work on the others and start re-building credit....it will be a long process for sure...but the sooner he starts the sooner he can be out of debt and have decent credit again....best of luck to him!

if he isn't able to get a loan/loc from a bank even with a co-signer...if he has a job that he has been at/planning on being at for a while...he can maybe see if they will help him out (ie. loan him the $XXX to pay out the debts and take $X back from his paycheque every pay period until he has paid them back)...

[88jbody]

see if the companies will settle, I have done that with old debts before.

or try a consolidation through a bank, as long as his credit isn't too bad and he has a good steady income that should not be a problem and 1 loan looks better then 5 outstanding debts on the credit report