Nearly All of My Payments to Beneficial Go to My 29% Interest Rate. How Do I Get Out of Debt? – Trevor

We had some financial issues and had to get a loan fast, so we went to Beneficials loan services, got a $9000 loan. the interest is 29% and over the last three years we’ve payed it down to $8800. Doing the math we have paid $8900 in interest, and the company will not help us to lower our interest or even work w/ us.

How can we solve this problem, our credit is ok and we are on a one income life. Do I try credit counseling, try for a settlement? We are in great need of advise thank you.

Trevor

I’m currently backed-up on answering questions so I’m posting some of the questions here for you to help answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

Sincerly,


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

Steve Rhode
See also  Is There Any Way to Settle Our Debts With AMEX and Beneficial? - Jennifer

4 thoughts on “Nearly All of My Payments to Beneficial Go to My 29% Interest Rate. How Do I Get Out of Debt? – Trevor”

  1. Debt Manangement Plans combine multiple debts into one, single payment, with the purpose of simplifying your repayment schedule and lowering your overall monthly payment amount by reducing your interest rates. A Debt Management company may be able to help you pay off your debt more quickly and alleviate some of the stress associated with paying bills.

    They will then work with you to craft a repayment plan based on a realistic monthly payment amount you can afford, as well as advocate on your behalf to your creditors and make your debt more manageable.

    When researching different providers look for a full-service partner that will not only help get you out of debt, but will also teach you how to remain out of debt in the future. Tools to look for include:

    Free educational resources

    Monthly communications packed with legislative or regulatory updates and how they may impact your credit standing, expert advice, timely articles about budgeting and other relevant topics, etc.

    24-hour account access online or by phone

    Money management tools ranging from loan calculators to budgeting worksheets and more

    An online community filled with real advice where you can connect with like-minded people facing similar challenges

    Depending on your circumstances, your credit can be enhanced, damaged or not altered at all, by a Debt Management Plan. It is important to understand that your creditors might notify the credit reporting agencies of your participation in a Debt Management Plan- this may negatively impact your credit report while on the plan or shortly thereafter. In addition, creditors will want all of your accounts closed or inactivated and will not want you to establish any new unsecured debt.

    I hope this information is useful as you research all of your options.

    Reply
  2. Debt Manangement Plans combine multiple debts into one, single payment, with the purpose of simplifying your repayment schedule and lowering your overall monthly payment amount by reducing your interest rates. A Debt Management company may be able to help you pay off your debt more quickly and alleviate some of the stress associated with paying bills.

    They will then work with you to craft a repayment plan based on a realistic monthly payment amount you can afford, as well as advocate on your behalf to your creditors and make your debt more manageable.

    When researching different providers look for a full-service partner that will not only help get you out of debt, but will also teach you how to remain out of debt in the future. Tools to look for include:

    Free educational resources

    Monthly communications packed with legislative or regulatory updates and how they may impact your credit standing, expert advice, timely articles about budgeting and other relevant topics, etc.

    24-hour account access online or by phone

    Money management tools ranging from loan calculators to budgeting worksheets and more

    An online community filled with real advice where you can connect with like-minded people facing similar challenges

    Depending on your circumstances, your credit can be enhanced, damaged or not altered at all, by a Debt Management Plan. It is important to understand that your creditors might notify the credit reporting agencies of your participation in a Debt Management Plan- this may negatively impact your credit report while on the plan or shortly thereafter. In addition, creditors will want all of your accounts closed or inactivated and will not want you to establish any new unsecured debt.

    I hope this information is useful as you research all of your options.

    Reply
  3. you have not provided near enough information to provide a clear answer. It seems BK is too big a gun in this instance and credit counseling may provide some nominal assistance. Debt settlement will get the debt paid off faster, but you will have to accept that your credit will take a hit. You may also find that Beneficial will get aggressive and sue. We actually tried a case with Beneficial and the jury did agree that the interest calculations by Beneficial were wrong/excessive. I would figure the total out of pocket on the following approaches and go with the cheapest: 1) total payments to Beneficial until paid off (use a payment amount that hurts but you can honestly make); 2) talk to a credit counselor and see what they can honestly do on the rate/payments and what that equates to on total out of pocket until paid off; 3) talk to a legit debt settlement outfit and remember they can only estimate numbers and there are hidden costs (1099, possible defense costs, etc.). My guess is, done properly, debt settlement is best, but you must have the stomach for it.

    Reply
  4. you have not provided near enough information to provide a clear answer. It seems BK is too big a gun in this instance and credit counseling may provide some nominal assistance. Debt settlement will get the debt paid off faster, but you will have to accept that your credit will take a hit. You may also find that Beneficial will get aggressive and sue. We actually tried a case with Beneficial and the jury did agree that the interest calculations by Beneficial were wrong/excessive. I would figure the total out of pocket on the following approaches and go with the cheapest: 1) total payments to Beneficial until paid off (use a payment amount that hurts but you can honestly make); 2) talk to a credit counselor and see what they can honestly do on the rate/payments and what that equates to on total out of pocket until paid off; 3) talk to a legit debt settlement outfit and remember they can only estimate numbers and there are hidden costs (1099, possible defense costs, etc.). My guess is, done properly, debt settlement is best, but you must have the stomach for it.

    Reply

Leave a Comment