Negotiate a Debt Settlement
Debt Settlement program startting tomorrow...what should I expect?
To make a long story short, I have managed to bury myself with almost $70,000 in credit card debt I did not want to file bankruptcy. I have been able to pay around $1,500 a month towards credit cards consistently which usually cover a little more than the minimum payment. I was doing the math and even with getting interest lower this is going to take me anywhere around 8-10 years. So I decided to join a debt settlement program that allows me to pay $1075 a month for 36 months and it will get me out of debt by settlement. I have never been late on anything before but this month I have been advised by the company I decided to work with to stop paying the creditors. Does anyone know if the debt settlement companies send pfd's or are they just trying to settle and get their share? What are somethings that I should expect to happen to my credit in the next 3-5 years? Does anyone have any success stories about settling their debt? I am just trying to sleep good at night with this decison.TY
Public Comments
- Get out before you start. What you are doing is stopping paying your creditors and paying this company instead. When this company gets enough money they will settle one of your accounts. Sounds good right...WRONG. What this company probably did not tell you is that the creditor is under no obligation to take the settlement offer. They also don't tell you that the creditor may not wait to get paid and since you are now delinquent they can(and often will) file suit against you in court. If this happens the defense "Well I am paying a debt settlement company" will get you no where except on track to get a judgment against you. If the creditor gets a judgment against you depending on your state they can garnish your wages or attach any bank accounts you may have. The best thing to do is talk to a legitimate Debt MANAGEMENT company. They work with the creditors to get your interest(and therefore your payment) lowered or removed. But since you make a payment to them and they pay the creditor each month it does not harm your credit in the long run. So once you are off the program you are in much better shape. This way will probably take you a little longer, but there is no quick fix for getting your situation under control. Take a look at the National Foundation for Credit Counseling they can help you locate one in your area.
- Don't do it....what are your assets? Debt Settlement programs are a scam...you can do it yourself.....
- I would get out. What they will do is not pay your creditors for months and then try and settle for less. No special skills. They just don't pay. Your creditors do not have to deal with them. Also, if they don't pay your creditors. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hired. Save the fees they charge and do it yourself. One more thing! If you use one of these companies you will be treated as if you filed bankruptcy when you try and get a home loan.
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