How or where can I get more information about the “Credit Card Debt Forgiveness” program ?
Saturday, February 27th, 2010 at
1:49 PM
Tһеу announced іח tһе news tһаt companies аrе willing tο forgive frοm 10 tο 40% οf tһе debt, аחԁ allow up tο five years tο pay іt οff wіtһ חο interest. Tһіѕ іѕ due tο tһе economy. Tһіѕ isn’t a “company” tһаt іѕ offering ѕοmе sort οf program.
Tagged with: about • card • credit • debt • Forgiveness • information • more • program
Filed under: Credit Card Debt • Credit Card Debt Law
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call them
try and search online to see if they have a contact number, but be careful about debt programs some of them can rip you off for your money, get a thorough understanding.
yea…. its not so much a forgiveness program as it is a scam to get your money. your still going to have to pay your bill.
You are referring to a scam. There is no such thing.
There are companies out there who act as your agent and negotiate with your creditors. Some of them are legitimate, but their fees for their services are generally outrageous.
You can negotiate on your own, but they won’t even talk to you unless they are not getting minimum payments and have not been getting them for a while. If they figure you are going to go bankrupt, they will gladly settle with you for 40-70% of what you owe them, but there is a catch. The catch is you better be willing to negotiate with them one at a time and pay immediately upon settlement. Money talks.
The “non-profit” Consumer Credit Counselors is another option, but it is very expensive. They promised me that most creditors would waive interest or lower it considerably, and that did not happen at all. They basically set you up with a livable budget and the rest goes to them. They distribute the monies proportionately until the debts are paid. These organizations are supported bt the credit card companies, who are NOT your friend. It’s a multi-billion-dollar industry that purposely loans money to people who probably cannot afford to pay it back. They set sly traps that people fall in to – even “intelligent” people.
Take a look at your overall financial situation by using a true non-profit organization that is not looking to take your money:
http://www.hummingbirdcreditcounseling.org
I used them for my mandatory bankruptcy education. If you use a fake name on the 1st part (it’s okay to do that) then it won’t cost you anything. they will gove you ALL of your options along with the pros and cons of each alternative (including doing nothing). HIGHLY recommended!
Good luck and best wishes.
Instead of doing a general web search, search the words “debt forgiveness’ under NEWS and you will find more information.
The first link under news search was this article from the LA Times
http://www.latimes.com/business/la-fi-lazarus5-2008nov05,0,6448941.column?track=rss
Credit card debt forgiveness for some benefits all
In these extraordinary times, card issuers’ plan to erase up to 40% of some customers’ debt would also be good for those who pay their bills on time.
See rest of article at site
This is only a proposed idea by a consumer advocacy group and some major banks and is not yet available.
The new pilot program — which the banks hope will become permanent — could involve as many as 50,000 people struggling with credit card debt. On an individual basis, the amount of debt to be forgiven would rise according to the severity of the borrower’s financial situation, up to a maximum of 40 percent.
But this program does have it’s downfall.
There would be a tax benefit. Borrowers would be able to defer payment of income taxes they owe on the forgiven part of the debt until after the remainder was paid off. The lenders could wait until then to book their loss on the forgiven debt.
Also, it would affect your credit score in that this would become a charge off on ones credit report and will lower ones score.
Hope this answers your question
More then likely a scam. Call your creditors directly.
Now one thing to consider.
Say you owe $10,000, and they forgive $6k. That $6k is now taxable income for you (and a write off for them)
You will have to pay taxes on that 6K.
Sgt. Big Red is correct. While the program isn’t yet federally mandated, consumer advocacy groups are requesting the government to lift or ease regulations concerning settlement/repayment plans for consumers.
Currently, creditors are only allowed to offer settlements or the full balance to be paid off within several months, not years. Although, many creditors are trying out the temporary program.
The drawback is you may eventually have to claim the reduced amount as income on your taxes.