- Green Member
- Posts: 15
- Joined: Wed Jan 16, 2013 11:17 pm
- Location: Denver, CO
A finance guru named Jordan Goodman comes onto our local Denver radio station weekly & gets this question every week from people in the exact same situation as you.
He says you have to find a NON-PROFIT credit card counseling program. Some have pre-negotiated rates with the banks to get your card rates down to 5-6ish percent, so you can actually make progress on your principal. You would never be able to get these rates by calling your credit card company.
STAY AWAY FROM FOR-PROFIT CREDIT CARD COUNSELING!!! These maggots will take your payments and hold the cash for six months, causing your cards to go delinquent & slaughtering your credit.
Once you're delinquent, they pay a settlement amount to the credit card company. The dirty secret is that you will have to pay Income Tax on the amount the debt was reduced, it's called Phantom Income.
For example, if you owe $25k on cards, but the bank accepts a $10k settlement, you have to pay the IRS income tax on $15k.
The non-profit company he recommends is Cambridge Credit Counseling.
I'm not affiliated with the company in any way, but I really think this is what you need to avoid bankruptcy. Many people have called back the show with success stories using them.
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