Question for those who have done settlement?

Hi all---

I have $25K in debt and I am moving in a debt settlement direction. If you have done settlement before, how long did your program take? Which did you use?

Most importantly, how long after you finished did it take for your credit score to improve?

Source: - "http://www.consumerrecoverynetwork.com/debt_settlement_faq.html#2"

As far as I know, debt settlement programs take anywhere between 6 months to 4 years for completing.

You can also go through the following thread with the discussion: -
Debt Settlement program and how quickly this works

I went through Preferred Financial Services. They were actually pretty good. They kept me informed and answered all questions. I had a debt of 17,350. I got it settled for 9k. I paid half of it. They got it settled within 6 months. I'm paying it off of monthly payments of 600.

The program depends ENTIRELY on your ability to pay back 50% of your debt. If you owe 25K and can tuck away a little over $1000 month away for instance, then you'd be out of debt in less than a year. Here's a simple calculator you can use: Cut your debt to 40% or 50%, tack on their fees to that amount, then divide that by the amount you're able to pay each month; that's a rough estimate as to how many months you'll be in the program.

I've been with a debt settlement company for 4 months now and they have settled 7 of my 16 accounts. I saved up more money on my own to ensure I could get through this process quickly because I'm tried of all the creditor calls.

I went with Rise Above debt relief.

I have to say that I will never get myself in this mess again. I know the pain I've gone through and I can't wait to get through it all.

What kind of damage did it do to your credit?

Debt settlment can drive down your score by 200 points or even more.

you can do the same thing a debt settlement does by yourself. Just contact the places where you owe the money. A lot of them, if not at all, can settle for 50% of what you owe. You can save yourself some money that way. I would then look at a credit restoration program. You can also do that yourself but it can get long! I would expect your score to go up after about a year.

I am $50000 in debt and weighing the options between a dmp and a debt settlement. I don't want to damage my credit significantly. I can pay the bills, but it's becoming unmanageable. I'd like to hear the pros and cons of settlement. I did a DMP in my 20s and completed it successfully. So, if anyone has any feedback / advice, I'd certainly appreciate it!

If you can afford to make the payment for a credit card debts. Enroll in a DMP0 I would go that route first. You should only consider debt settlement if you are overextended and can't afford your minimums and can`t afford a dmp.

If you can minimize the length then you should be ok. If you can settle accounts before charge off you will be in a better situation. Again the bottom line is to become free of debt. You will live longer!

You can also give a try to settling your debts by yourself. You can get all the necessary guidance in the following page: -

Step by Step Guide for settling your debts