Hi everyone, I am in financial trouble, and looking for the best option out there that will not require me to file for bankruptcy. My business is a sole proprietorship and most of the debt incurred is as a result of credit cards. I have heard a lot recently about debt consolidation being a good option for individuals. Does this also apply to business owners? On a strong recommendation from a friend, I am considering calling this company: nomoredebts.org Before I do though, I'm making a tour of the blogs and forums to try and get some expert advice. Please respond to this comment or email me at creditcounsellingbc@gmail.com if you have any suggestions for recommendations. Thanks, and I look forward to hearing from you.
Make sure you choose a non-profit organization if you are going with a credit consolidation company. I know for a fact that a lot of creditors no longer deal with for-profit companies. They don't have the best interest of the client in mind. They advise their clients to fall behind even further on their debts so the OC will offer lower payment options. Also keep in mind that while you are setting up payments with a CCG, the collections calls are not necessarily going to stop. Many people try to tell collections agencies that they are working with a CCG when they are not. So most companies adopt the policy that they will not stop calling until an accepted proposal is on file. Here is the basic life-cycle of a CCG proposal: 1. CCG company reviews account info and creates a proposal 2. Proposal is sent to creditor. Allow weeks, not days, for proposal to be reviewed. 3. If accepted, creditor will make a requirement for x number of payments made by x due date for the accepted proposal to be affective (i.e. they won't lower apr or min due until a set number of good faith payments are made). 4. If declined, be prepared for normal collections calls directing you to call your CCG and resubmit an acceptable proposal. 5. Usually the CCG will contact the creditor to inquire about what terms are acceptable. 6. NEVER expect the creditor to contact the CCG for payments. They will not. They will only accept payments, not request them from the CCG. You are honestly looking at a 90 day process to get set up. All the while you will speak to dozens of different people giving you directions. DO NOT IGNORE THE ADVICE OF THE CREDITOR . They have specific requirements for CCG proposals no matter what CCG company says. Ignoring them wins you no leverage.
