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 Posted: Wed May 31, 2006 7:42 pm Subject: debt settlement vs. consolidation |
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I am facing probably the most popular challenge for people in debt. Settlement just doesn't sound appealing to me. Yes the balance reduction seems rather attractive but at the expense of 5/6 months bad credit, I don't know.
Consolidation sounds better but, I will still miss one month's payment on the two cc's that I am consolidating b/c the company that contacted me charge one month's min payment plus $100 in fees. If I could afford all that, plus the minimum payment going to the creditors, I'd be able to pay off my balance on my own!
Any advice would really be appreciated  Thank you
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ayles
Joined: 29 May 2006
Posts: 14
Debtcc Points: 471
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| Posted: Wed May 31, 2006 9:58 pm Subject: |
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we're in the same situation...not sure where to go...!
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penster
Joined: 23 May 2006
Posts: 2
Debtcc Points: 50
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| Posted: Thu Jun 01, 2006 6:21 am Subject: |
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Can't really tell you which way to go. There are lots of great people here to help you along the way though (no matter which road you take.)
In my case, it was not hard at all. I was paying like 560.00 in minimum payments only, I was sinking and getting no where.
went to debt consolidation and wow...they could save me a whole 35.00 bucks. Humm...not to good.
I took my paperwork home with me, called debt settlment and within 3 weeks they came to the conclusion that they would save me like 170.00 bucks! I went with the savings of 170.00 bucks because I could not afford to live another 5 years only saving 35.00 through consolidation.
PLUS the consolidation company I was going to be going through was taking their monthly fee spread out over the 5 years they estimated to me through my minimum payment. AND she showed me the interest rates on my cards and they were only dropping interest rates by a hair!
GOOD LUCK to ya.
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Linda
Guest
Debtcc Points: 100
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| Posted: Thu Jun 01, 2006 11:34 am Subject: |
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Hi ayles
You have to make a choice between a consolidation program and a settlement program. However, you can relate yourself with others who have taken these programs and paying off their debts. Your ultimate motive is to find the perfect debt help.
Analyze your financial situation and work out proper budgetingplans. Give priority to the consolidation payments if it affordable. There are many who cannot afford to make these payments and hence the accounts reach to a charged off status. During this situation, debt settlement is an option.
If you are expecting to be late for one month and then catch up with the payments, consider a consolidation program above all. The counselor can negotiate with your companies and waive off the fees.
Consolidation program is appreciated more than a debt settlement8 program. Whatever choice you make, keep in mind that your credit file will be reviewed by your payment history. You should concentrate in paying off all your past debts to get the best deals from your future lenders.
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john
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Joined: 05 Jan 2006
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