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 Posted: Wed May 28, 2008 5:57 am Subject: Basic Question |
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40k in cc bills....have talked to credit counseling and what not and have talked to debt settlement people...
How do you now which one to go with? They both hate on each other and say their program is best. I feel its impossible to get a straight up answer from people. And then again how do you know which one is best for your credit and everything else. I just cant seem to figure out which way to go. someone help please
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chsocer18
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cajunbulldog
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| Posted: Wed May 28, 2008 6:37 am Subject: |
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but i mean which one is actually better for your credit in the long run....they both say that their program is better than the other. The settlement people told me that a debt management plan is like a soft bankruptcy and that I should definately go the settlement route. Then the credit counselours told me I should definately stay away from settlement companys. i mean im not good with decisions i just want some advice on which route to go. If i knew settlement would work I would do it i think. But then again i want my credit to be good 5 to 10 years down the road.
any advice
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cajunbulldog
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| Posted: Wed May 28, 2008 6:56 am Subject: |
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debt settlement companies charge fees, average is 15% and it does get recorded in your credit history. Also it is possible that the settled amount could be taxed by the IRS.
the credit counseling agency may be able to reduce the interest rates and reduce the principal debt amount by eliminating late fees and other financial penalties and lower your interest rate and payments. I don’t think it affects your credit.
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| Posted: Wed May 28, 2008 7:38 am Subject: |
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so which one are you saying is better for me to do?
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chsocer18
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| Posted: Wed May 28, 2008 9:10 am Subject: |
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does anyone have an opinion on which way is best to go....overall is it a smart thing to do debt settlement. Is bankruptcy much worse then the other options?
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chsocer18
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| Posted: Wed May 28, 2008 10:10 am Subject: |
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Yes I would imagine bk would be much worse on your credit report then credit counseling or debt settlement. Have you tried calling the number listed to the right of the screen. They offer a free no obligation consultation and they may be able to discuss with you what they feel would work best for you. I'm sure they could also answer your questions as to which would have the least affect on your credit. Also I have a question have you tried calling your credit card companies yourself and just asking for a reduced interest rate sometimes this actually works and you can do what the credit counseling could do for you. Just a thought you might want to give that option a try the worst they can say is they're not willing to do it.
Johnita
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johnita
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| Posted: Wed May 28, 2008 10:16 am Subject: |
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yes i tried calling them and they basically straight up said no. I also have pretty good interest rates on my cards already. I just dont know what route to go at all
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