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I have 3 different debts, 2 cars and a student loan.

Trying to figure out how to be debt free within the next two years, or of course as quickly as possible. living pay check to pay check, no savings, no extras...

I am seeing these ads on google to lower debt. I assume the call your creditors and pay them off then offer you a deal to consolidate?

it says things like "lower your debt by 50%"

My student loan is currently in forbearance for a year. I think the interest rate right now is 2% its a federal loan. Its my biggest.

I am not sure if to try to consolidate all the loans, or try to just consolidate the 2 car loans and leave the student loan as it is good rate.

We are going through a short sale so are credit is probably not great, havent checked because the ss hasnt been approved yet.

here is a link to what im talking about. Looks pretty hoaxy to me, but we are desperate.

http://www.freedomdebtrelief.com
 

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A lot of these have had problems with the FTC/Attorney General's office - not to mention BBB. You can do what they do and you won't have to pay their fee. Student loans can't be reduced/settled on unless in the event of a permanent disability (IIRC).

Best bet on the cars is sell them, then the debt is gone. The debt consolidation programs are designed for unsecured debt - credit cards, medical collections, and the like.
 

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NO! Read the fine print during the ad. They allow all your stuff to go to collection, then they pay whatever amount the creditor is willing to take. You can do that yourself...for free. But I wouldn't.

Here's a calculator that will help you have a nice visual of how to handle those debts. If you can't do it, let your own cards go to collection and deal with them yourself...for free.

http://www.vertex42.com/Calculators/...alculator.html

Lisa
 

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Most of the time these things don't work. Your best bet is to call each place you owe money to and see if they can do anything to help you out they would rather get most of the money than none if you say file for bankruptcy.

When I married DH I married a ton of debt and to pay it all off I started with the lowest amount owed to be my first bill to be totally paid off. All others I just paid minimums and put as much as I could on the lowest. Then when that was finally paid off I took the money that I used to used to pay off the first one and put it toward the next lowest and so on and so on.

My favorite resource for finances is: www.crown.org

Under the "Financial and Career tools" tab are lost of great resources the free money map is very helpful and also teaches how to build savings, etc.

Good Luck and Be encouraged!
 
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