Also, can anyone point to a website with a debt settlement timeline......when to send out first letters, etc.

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Hi, I think you need to elaborate your question little more.

However, If you are paying off through a settlement program then it may take 3 to 4 years to repay all the debts depending upon your performance and your financial stability. You can get it clarified by the settlement firm you are dealing with.

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Normally, you can expect to settle your debt with a timeline of three to nine months. If one of the parties wanted to expedite the process, it could be accomplished in as little as a month or so. By the same token if someone wanted to stretch out the timeline, or stall, things could drag on for a year or more.

Payment or payback timelines are another matter altogether. Unless bankruptcy is your only option, it is normally in the best interest of the debtor to make the process as short as reasonably possible. There are several reasons for this:

* After reaching a settlement - even at a lower value than originally owed - the credit card company will still be charging you interest on the outstanding balance. So you don't want to pay that 18% rate (an example rate) any longer than necessary.
* The longer you try to things stretch out, the more likely it is that the credit card company will throw up their hands and attempt to settle your account in court.
* After going through debt settlement, most individuals want to get the whole experience behind them, including the rebuilding of credit. Until you've got this deferred payment arrangement successfully behind you, you're perceived by all creditors as a credit risk.

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Hi thanks for the responses.

you are right tweety, I def. do think i need to elaborate on my question more. Both your answers were very helpful though. thanks also for responding justinhi - def. helpful.

my question in actuality, probalby has less to do with a timeline, now that i understand it better and could be when do you recommend you first contact the creditor for the first time after you have not paid your bill? 120 days, 140, 160?

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Hello Luv2laugh,

If you opt for debt settlement then you are not the person who will contact your creditors, but the debt settlement company you have registered with.

Let me explain a bit for your convenience.
Let me suppose that you have decided to go for Debt Settlement. So, the first thing you have to do is approach a Debt Settlement or Negotiating firm. Then the consultants of that firm will analyze your financial condition and will give you a free counseling session. After that they will suggest you to register yourself for the debt settlement program with their company. If you agree then you have to fill up some forms for enrolling yourself with the settlement program with that firm. Once they receive basic information about your financial health the Debt Negotiating/Settlement Company will approach all your creditors on behalf of you. They do it for two reasons: -
1. To inform your creditors that a debt settlement company is working on your outstanding debt
2. To inform them that all further communications from the creditors should be routed through the debt settlement company

Hence, you don’t have to contact your creditors once you have registered yourself with a debt settlement company.

Regards,

Phoenix

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Once you're delinquent for more than 180 days. Just hang tight someone will shortly be around with more information.

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