Description

How many of you have debt piling up on your credit cards? Have you tried to work out a plan with your credit card company? We went to the streets of New York, and talk to debt experts to find out.

Transcript

Audra Lowe: How many of you have debt filling up on your credit card and said you’ve try to work out of plan with your credit card company? We went to the street of New York to find out. Female 1: I tried to make a deal on one that I do but I haven’t made the deal. Female 2: Am I fortunately had enough had any of that situation happens and no. Male 1: Yeah but hat didn’t work I still have the fact. Female 3: No, I’ve not had to deal with my credit card company in that way. Audra Lowe: So how difficult to try and get some kind of deal on your credit card for we ask look in some freedom debt who stop by our studio earlier. A lot of people said they haven’t have that situation or just haven’t any luck with getting the credit card companies and negotiate a better deal for them so how are they trying to makeup for there losses the credit card company. Tim Wilkins: Well they’re trying to cut the raid of default by actually working with people more but how much they actually will work with you. Audra Lowe: Right. Tim Wilkins: That’s the question and it is important to point out that is your one of your right as a barrower to negotiate with your credit card companies but in many cases that will only see reduction of the interest rate a few points which won’t have such an impact than what you pay every month. Audra Lowe: Okay so a lot of people do not realize you have to do is pick up the phone at least tried and then the worst they could do is say no but you can’t actually get that rate not down right? Tim Wilkins: Not only the right but they are negotiating on the principle balance as well. What you actually owe and they will do it drastically sometimes, the only problem is they’ll either one in one lump sum or they wanted in two or three or four payments and if you don’t have 250 amount for a minimum payment you certainly don’t have 2450 or $3000 or $8000 to see the great reduction in your principle that’s going to be needed to get out of debt. Audra Lowe: So that’s could be use for people that are struggling and they try to get out of that if you do have that lump sum to put upfront right? Tim Wilkins: Absolutely or if you can find the way to really negotiate well yourself or in our case at freedomdebt.com, find somebody that has a path to reducing it for you and has a program that will breaking into enough payment to get you out of debt less painfully. We actually of more of debt consulting firm, we are look at each individual case by themselves for the married of maybe they can do it themselves, maybe credit counseling or bankruptcy would be a better option and more often enough though for our people we’ve got a better plan and place for them a settlement plan that will negotiate the reduction and put the actually oh and over the course the next two to four years get them out of debt without the bad marks of say credit counseling or bankruptcy. Audra Lowe: And you got some example here. Two of someone that you’ve actually help out and I know about thousand of people but— Tim Wilkins: Thousands a week. Audra Lowe: Yeah, this one in particular, how did you? Tim Wilkins: Well in individual owe over $14,000 on just one car and we saw reduction of that down to under $6000 which is a little more than half on average client to see the reduction of half on there cards and again they’re carrying an average bounce of $30,000 on there high interest credit cards. Audra Lowe: Okay and you guys have a network of attorney’s that actually works with people. Tim Wilkins: Which is nice to have attorney’s on your side for change. Audra Lowe: Right and instead of the other side. How the people reach out to you to get hat help? Tim Wilkins: Well and that’s the nice thing is for the thousands every week that reach out to us, make that first step and call us if your struggling for month to month to get by and having those safety cash and wasting all your money on interest or your already behind on your payments. Call us at 800-789-7544 or go to freedomdebt.com and the first 50 callers will receive a complementary income financial debt analysis and the copy of our budgeting guide. Audra Lowe: Helping out a lot of people doing a great job too. Thank you so much Tim. Tim Wilkins: Thank you. Audra Lowe: Good to see you again.