Card Credit Debt Program Settlement

I recently heard on radio about a debt free program. They officially negotiate on your behalf with the credit card companies. What may be the Cons? Is it safe to rely on Debt Settlement Program to free from one's credit card debts? How may it affect one's credit score?

Do not fall for these debt consolidation scams. The debt will still be there and also are your spending habits that got you there in the first place. You won't get yourself out of debt by borrowing. The only true way to get out of debt is to change your habits. One way is to get yourself enrolled in a good debt reduction program. There are many good ones to choose from. Sometimes it can be hard to choose the best one for you. You can visit the web site below for reviews of some of the best ones.

2009-01-23 19:10:47 by Peace Lover

www.howtodebtsettlement.com How To Settle Credit Card Debt Yourself www.howtodebtsettlement.com

i mean does the credit card company will still summon you to court?

They can.. They are not obligated to work with a debt settlement program.

2008-03-07 02:10:38 by evildead_eye

talk to the bank about this situation? Do banks lower the balance and work with a customer in trouble, to help resolve this problem?

Stay away from debt settlement companies. Typically they take your money and let all your accounts go 90 days past due. Then offer lowball settlements under threat you will file bankrutpcy. Not only will this trash your credit, most credit card companies refuse to play and will immediately file lawsuit. The settlement company won't be helping with the lawsuit.

Consider credit counseling (which is completely different than a settlement company). Check here for a NFCC member near your: http://www.nfcc.org/. These are legit, non-profit companies who offer debt management programs for a nominal fee. They don't settle your debts for less. They negotiate lower interest rates and payments to allow you to pay off your debts.

While in the program, it is noted on your credit file. However, upon completion,the notation is removed and you will have decent credit.

You might be able to get the credit card company to work with you if you have a temporary situation. But it's a matter of the debts getting out of hand, go with the credit counseling.

2008-11-26 17:37:27 by Bijou

The "programs" you see advertised do not work very well. Doing it yourself does work.

Some things to consider about Debt Serttlement, especially if you have a boatload of debt and numerous accounts (as I did in 2009):

1) First of all, make absolutely sure you have to go the Debt Settlement route. Your Credit Rating will take a hit and you may go nuts (see Item 3 below). If there's any way you can borrow from friends or family to get out of this mess I strongly urge you to at least consider it.

2) Most Creditors will not negotiate a lump sum settlement until AFTER you are in default, so basically if you want to settle, you have to stop paying before they will even consider settling.

3) Once you default, you will get CONSTANT calls and letters from the Creditor. Once they give up, a Debt Collector will do the same. Be prepared for the onslaught and DO NOT DISCOUNT THE PSYCHOLOGICAL TOLL THIS WILL TAKE ON YOU! If you're like me and are not used to being unable to pay your bills, each call and each letter is like a punch in the stomach, reminding you that you are incompetent and can't pay your bills.

4) Debt Settlement can be done on your own. There are many resources here in Yahoo Answers that can help guide you. Do lots of research! I recommend reading the questions that CatDad, Dixie Darlin’, and Bdancer222 have answered; in my experience they are very knowledgeable and know what they’re talking about.

5) Do not hire a Debt Settlement company! It can be done on your own with the same or better results, and you’ll save a lot in fees! Generally, they charge 15% of the total debt you enroll in the program, spread out over 12 or 24 months. The fee itself makes it VERY DIFFICULT to save anything for settlement depending of course on how much debt you enroll and how much you make.

6) Be prepared; you can get sued! There is at least one Credit Card company I know of (Discover) that will likely sue not long after you're in default. AMEX was very also very aggressive in my case (they've sued me on two of the four accounts I had with them). In general, most Creditors and/orDebt Collectors will work with you.

2010-02-02 12:43:31 by izzy 24

months. I recieved a demand letter from a collection attorney. They are giving me the option of paying monthly. If I start paying them a reasonable amount will they accept?

I guess a good question is what kind of debt settlement program are you in? Consumer Credit counseling type debt repayment, or actual settlements where they negotiate down on old collection accounts and often lump sum the payoff?

If it's the first, talk to your counselor but you shouldn't even be getting those kinds of letters.

If it's the latter, I'd probably see how much they will take, then talk to your debt settler. Realistically most debt settlers get 25% of what they save you, so IF it you can it for the same price, you'd save that fee, but...the collection agents are real crooks and probably won't go as low if you negotiate directly.

I'm thinking of going the debt settlement route but wonder if they can really get it enough lower to be worth their fee (though not dealing with the lying scumbags has its value).

I'd love to know how it is working for you. Email me if you wish to share.

2006-07-09 19:56:39 by sunshinegirl