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I am $29,000 in credit card debt, creditors calling me 6 to 7 times a day from early morning to late night. I can't make pymts now, late charges, overlimit, interest,etc. Been talking to debt settlement. Is this a good program and how does it work, is it okay to sign limited power attny, I just want to close out my addiction, pay my debts and be free of this monkey on my back. I know now I have a problem and want to get help to never let this happen again. From now on cash only! If I don't have it I don't buy it! HELP!!!!!

Posted: Thu Dec 14, 2006 10:25 am Subject: Not sure how this works...

not sure how this works, but I would like some input on my situation. It is so nice to know that you are not the only one out there that has this problem and it is like alchoholic anonymous in that getting into debt (at least in my case) is truly a addiction and once you admit that you have a problem you can begin your road to recovery and become accountable to a lot of people.

Posted: Thu Dec 14, 2006 10:39 am Subject: you are on the right track

thank GOD for small favors. Any addiction is a sure way to suck the life out of your finances. It is good to see that you want to do better.

Posted: Thu Dec 14, 2006 10:40 am Subject:

It's good to see that you want to take control over your situation and come out of debts. You can eliminate it either by using a debt consolidation plan or a debt settlement plan.

The monthly payments set in the settlement program are lower than the payments in the consolidation plan. Depending upon the financial position, people pick the plan that can work well for them.

A good counselor will be able to settle the debt with your creditors by half. The accounts are kept in default for a certain period and you are asked to put money on the new account opened by your settlement company. The counselor will start the negotiations when they think will be able to convince your creditors about your inability to pay the debts at existing interest rates and because of the fees added with it.

This program has higher returns; needless to say there will be higher risks along with. Most creditors will try legal actions because of your accounts in defaults or they will hire a collection agency for recovering the payments. A good settlement company will be able to take care of your situation. Be aware, this program requires a lot of patience before results come out.

If you are in a better financial situation and can afford with the consolidation payments, give it prior preference.

Posted: Thu Dec 14, 2006 10:41 am Subject:

I am wondering, if I go ahead with this company to settle my debt and pay them the fee to be debt free in 4 years, is that okay, will the creditors hunt me down through relatives, friends, etc. do I talk to them when they call????? What do I do. I am so nervous about this.

Posted: Thu Dec 14, 2006 12:55 pm Subject:

Research the company well before you sign the contract with the settlement company. You may inquire if they have handled the creditors you are working with. You will know about their success. There may be some info about them with your state AG.

debtwhiz · Posted: Thu Dec 14, 2006 1:28 pm Subject:

You should ask them if they are going to consolidate or reduce the balances.

Posted: Thu Dec 14, 2006 2:49 pm Subject:

debt settlement does work--if you are committed to it. There are some companies that we respect around here and they are called Superior and Forgetadebt.com. Superior has a solid reputation, but it seems like recently people have found some of their customer service not up to par with that expected. Regardless, they seem to do an okay job. Forgetadebt.com has been recommended by a few people and is solid company if you meet their criteria.

Posted: Fri Dec 28, 2007 1:55 am Subject: Debt Settlement

You can also do debt settlement yourself. Many people have been successful. You just save money until you have enough to start negotiating with your creditor (usually 40% to 50% of the debt). You must be delinquent before you can negotiate and you have to be 90 days to 180 days delinquent to get the best deal. Keep reading and researching and you may feel comfortable to do it yourself.

Posted: Sat Dec 29, 2007 8:33 pm Subject: Is debt dettlement safe/okay?

I have been researching debt settlement as well and decided to do it. I read a lot of reviews on many companies here on debtcc. Most had mixed or horrible reviews. I did read about a few favorites on here. I just decided to do it on my own. There is always the chance a creditor can sue you or things can go wrong but signing up with a company will not guarantee that it wont happen.

I am no expert but I thought most debt settlement companies like to have your accounts settled within 2 years or something like that. 4 years sounds like a long time. I can see a creditor trying to sue in that timeframe for sure. I do know you need to sign a limited power of attorney for them to talk on your behalf. Gosh, I don't know. Something doesn't sound right. Maybe someone who has been thru this can shed more light on the subject but the whole 4 year thing is throwing me off. I can see 4 years for consolidation but not settlement. Also are you paying up front fees? Just please do your research before you sign anything.

Good luck! And yes, that is my saying now too...CASH ONLY! Laughing

bls4814 · Posted: Sun Dec 30, 2007 8:34 am Subject:

Mine is going to take 4 years but I am not settling I am conslidating, which I think will be much better, as I will never be behind on payments, its more of a reduced interest rate.

Posted: Sun Dec 30, 2007 10:33 am Subject:

hlenemier - you can do debt settlement yourself as mentioned above and I am doing this myself as well. I would first list all your accounts so you know where to start and talk to each one and explain your situation. Usually if you speak with them and they update your account they don't start calling again for another 5 - 10 days, so that will help minimize the calls. Also - if these are actually with a collection agency already you can send them a Cease and Desist letter to get the CA to stop calling you and only correspond by mail. The best thing is to list everything out with balances so you have a true picture of where you are, and start with the smallest account and work from there. This can be done and you can save some fee's by doing this yourself.

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