Started Debt Relief with Beyond Finance
So, I've been paying roughly $650 a month, split between two different credit cards for quite some time. There was a point in time when the balance was lowering and I had a considerable savings put aside for paying down the cards. One thing led to another and I had to use my savings for rent and my car payment while I was with out a job for a few months, so I paid the minimum payment which is all interest at this point.
Here's my list of debts:
- Honda ($35,000) 1 Year, but my second car that I've financed in the last 6 years.
- Discover (14,700) 7 year account
- Chase (7,700) 4 Year account
- MasterCard (1,800) 2 Year Account
I was skeptical of signing up for a debt relief program. Over the last few years I've applied for personal loans through my credit union and regular bank. Denied. I tried doing a balance transfer for both cards to at least lower my minimum payment and also have no interest for 2 years. Denied. Multiple phone calls with both Discover and Chase to lower my interest rate, which did not work for Discover, but I did get my Chase rate lowered.
I have been struggling with my physical and mental health this last year. I was financially abused by my now ex while I did not have a job, literally using my savings to pay his mortgage plus my car and these credit card bills.
I just used my tax return to pay off $500 on each card, plus my car payment for two months.
I have three jobs, plus gig work. (1,900 a month)
The process was really easy, first we tried to get a personal loan for 24k, but obviously I did not get approved since my score is (680-690)
Ultimately, I'd rather take the dip in my score and pay these people to represent me/negotiate with Chase and Discover. ($199 a month as opposed to $600+)
My car is financed through Honda and I am keeping my Mastercard open because my issue is not spending money, it is high interest on money I have already spent on major life needs (health scares, a bed, braces). I'm hoping that keeping this card open will help me because I know that this program could hurt me long term on my score. They did advise to close it, but it is a $35 payment on a card I've used once a year since opening. The hardship is not the $35 a month, it's the never ending $600 payments to balances that never go down.
Patience is key with these things. I'll keep this updated with the pros and cons of the whole situation.