Negotiate a Debt Settlement
Debt settlement vs consolidation?
I'm trying to get out of over $35 grand of credit card debt. I was told by The Credit Exchange that debt settlement (with lawyers, when you put away a monthly fee into an account) is cheaper than consolidating/counseling. Which is safer? Did you have much luck with either? Any help would be appreciated!
Public Comments
- before I do either I would check statute of limitations and read thru creditinfocenter.com and buddhibbs.com
- I used a debt management company for 2 credit cards & a credit loan that would have meant between $300-400/mo. on my own. They negotiated a lower interest rate, and spread out the payments over a 5 year period, and charging $16/mo x 5 yrs = $960. As it would have been a larger hardship to pay $350/mo, at $286/mo was something I could live with. Even so, there are problems that you have to deal with such as the monies are withdrawn from your account, but not placed into the accounts until a week later. To deal with that, I had to reset all the due dates to the end of the month so that it would be late. Also, until the bank/creditor accepts the proposal, the normal fees and minimum payment would apply, and the acceptance takes a period of 3 months. I have not had to deal with a lawyer, but somehow, I feel that their fee would be higher. With this program, I know what to expect and if at some point, I have extra fund to add to the payment, I can make it. You can decide if anyone here can tell you their experience.
- Watch what is going on with your payments. Make sure that they are a reputable agency and that your credit cards will negotiate with them. In either case I have heard horror stories about people that paid the fees and ended up in a worse financial position because it was a scam or the cards refused to work with the company. Check into a reputable bankruptcy attorney- NOT to file, but as a new requirement each person has to go through approved counseling. You can probably get information through these outside agencies. Good Luck.
- Debt settlement is just that, you are offering a lower payment than the total due. This practice if accepted by the original debtor will do more harm than good to your credit report. Its as though someone owed you $1000 and they offered to pay you $700 and forget the rest, would you do it? and if so, would you give them a good reference? Here is a link to the FTC that will guide you in getting out of debt the legal way and how you can do it on your own. Good luck and hope this has helped.
- There is no absolutely answer for your question.However,explorer the information here will give you some ideas.HOpe it helps.http://debt-consolidation.featured-resources.info/home-loan-equity-loan-debt-consolidation-mortgage.html
