Category Archives: Personal Finance

How do debt counselors make their money?

bloomin73 asked: Although they advertise free debt counseling, they are a company so they have to make profits but how do they do this? I teach high school business classes and would like a better understanding of how it works.Alisa

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Is it wrong to fund retirement and investments while I still have student loan debt?

Rob A asked: I have student loan debt with pretty low interest rates (5% and 3% respectively). Is it better to put extra money toward paying off the student loans quicker or putting that extra money into an IRA and/or good mutual funds which would ideally earn a higher interest rates than the loans?Leonard

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Better to take 30K out of 401k and pay off mortgage completely and be debt free or let it ride?

James C asked: I still have 25years on Mortgage and could muster the cash to pay it off by combining all liquid assets and be debt free?Genevieve

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Debt Management Program the right way to go?

Moonlight177 asked: We are drowning in debt. So far we have managed to get our MINIMUM monthly payments out each month but we are getting no where. Would a debt management program be a good option for us? What exactly is it? Where do I find a reliable one to work [...]

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are there any debt settlement companies that are legitimate?

HB asked: I have several old debts at least three years old that have been put into collections…haven’t been able to pay on any in years. Looking to pay off but cannot make very high monthly payments so the CCS seems like it wouldn’t work since I have SO many creditors to work with [...]

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How do you celebrate being debt free?

Josh A asked: the list is probably endless but just give me a few suggestions. no im not debt free just yet. got 3 more debts. 2 of them will be paid off before the month ends and the 3rd sometime next year.Les

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Do Debt Relief Companies really work? Can I do the same job myself?

zermenoj asked: I am looking to pay a debt relief company 15% of whatever I totally owe. Can I do this myself? Has anybody ever done it thyself and save $2300 I need help, am I making a mistake or doing the right thing. One way or another, I need to [...]

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Is California planning to extend the years for the mortgage forgiveness debt relief law?

Q asked: The California mortgage forgiveness debt relief law is effective immediately. It is similar to federal law, but with important differences.
The California law covers qualified debt forgiven in 2007 and 2008, where as the federal law will soon cover debt forgiven thru 2012.Leona

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What is the process for “debt settlement”?

LocalBoy asked: What is the process for debt settlement? I understand that when ur sent to collections ur able to settle the debt with them for a fraction of what u owe. But before that, will u get harrassed by all the calls from the bank about the missed payments? Can the [...]

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what are the disadvantages to using a debt management company?

seeker asked: I have credit card debt that I am considering using a Debt Management Company. Any thoughts?Melvin

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