Internet's first get-out-of-debt community - 122,000 members

Hi guys, I just discovered this community the past couple days and am not sure where to post this, so sorry if it in the wrong spot.

I have 22,000 dollars in creditcard/loans/auto debt, and not sure how to conquer this. I can't help but feel really optimistic in that we can pay it off ourselves w/o settlement. We get extra jobs and more sources of income.

We are 21 years old, I just graduated college and my husband is still finishing his undergraduate degree. We are both intending to go through grad school. I am not worried about student loans (I work w/ kids with disabilities so I am exempt from paying those off). But, I want to be in a position where we can start saving money again.

Whenever I start to think about settlement. I get a funny feeling in my stomach and feel like we are cheating or it is the "easy" way out. Even though it doesn't seem easy at all. It is just that I feel bad about not paying back money that I borrowed.

Did anyone else feel that way? How did you get over those feelings?

Posted: Wed Jan 30, 2008 9:26 pm Subject:

Hi and welcome to the site. Have you thought about maybe debt consolidation instead, they get all their money and from what I've read (I have no experience in either)it's easier on your credit reports.

Have you signed up for the free consultation that registered members are entitled to?

Posted: Wed Jan 30, 2008 10:30 pm Subject:

Hi Lone Gunman,

I did sign up for a free consultation, but we didn't really talk about debt consulidation, although that is a good idea. I don't really know if it would be best in our situation, but i'll look into it. Smile

thanks.

Posted: Wed Jan 30, 2008 10:38 pm Subject:

I would go with the option Lone said. debt settlement can be as bad on your report as a bankruptcy. So it doesn't look good to your creditors. But if you do the consolidation, they can usually reduce your interest and sometimes get it to stop. Plus you make your payments to the company and they send out payments to your creditors every month, instead of putting your payments into an account and let it sit there until you have enough saved up to offer a settlement. But whichever you choose make sure you check out the company with the BBB and your state to see if there are any complaints against them. Some are good and some will rip you off. Make sure they are licensed in your state to do business.

I have settled on some of my internet payday loans, but the only thing I did not pay for was the interest they tacked onto the loan. I paid back what they gave me and no more. Because they were not licensed in any state so it was an illegal loan. I really didn't have to pay it, but they gave me the money and I gave it back. So no I don't feel guilty for the harassment they gave me just to get the principal back.

Welcome to the community Smile

I am glad to see that you are trying to make a plan to get your finances in order before it gets too out of hand. I think you will get through this, you sound like you have a good head on your shoulders about getting a second job to pay your bills. I just wish I would have done that 15 years ago and I wouldn't be in the position I am in now. So good for you to start early on getting thing straight Smile

Guest · Posted: Thu Jan 31, 2008 7:57 pm Subject:

Settlement is the fastest way out and it does hurt your credit report for about 24 months, but if you have not been making your payments and you are delinquent already - it really is a mute subject, "take your bath while the water is warm" and start fresh. Debt consolidation affects your ability to get a loan too, and most debt consolidation companies have to give permisson to the lender to let you have the money.

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