Should I go for one of these seductive debt reduction services?
I have credit card debt -- about $10,000. Then there's $10,000 in
student loans. Should I go for one of these seductive debt reduction
services? Or, should I just defer the student loans and focus on paying
off my evil credit cards? Help!! I'm not suicidal, I just want to start
saving/investing money instead of feeding the monster.
The debt reduction services--GENUS or Consumer Credit Counseling
Service--are funded by the credit card companies. They may be of help,
depending on your circumstances. Deferring the student loans until you're
able to make payments may let you take care of the higher-interest credit
first, and then concentrate on the lower-interest student loans.
While bankruptcy would wipe out the credit card debt, it wouldn't discharge
the student loan obligations. You might be able to qualify for a "Chapter
20," however; a Chapter 7 to take care of the credit cards followed by a
Chapter 13 to let you make payments on the student loans.
Speak with a local bankruptcy attorney for more details about what it
possible in your area and under your situation.