Settlement VS. Consolidation

Date: Fri, 09/29/2006 - 16:13

Submitted by nas866
on Fri, 09/29/2006 - 16:13

Posts: 31 Credits: [Donate]

Total Replies: 6

Can any one tell me what the Con's are of taking a settlement over consolidation? I was going to use Consumer Creidt Counseling. A spoke to a counselor that called me from registering at this sight. I gave the counselor a run down on my history, but I did not have all the info she needed because they called me at work. She asked me to get everything together and give her a call the next day. Well when calling the next day, I was given to another counselor and told the one I had talked to the day before was no longer there. This kind of sent up a waring sign in my head, but I gave the new counselor all my info and the paper work is supposed to be in the mail. This counselor did say they were backed by a law firm but did not say which one, and I also asked if they were a member of the BBB she said no, but that did not mean reports about them could not be found with the BBB. I was told the first payment I make is to set me up and then actually my November payment would go to my creditors. I have just under $10,000 in usecured debt. I was told this would take two yrs to pay off using the counseling service. I am just a little anxious for I want things to be legit. well I know this is long BUT now her is the deal. I got a call from one of my creditors and thy are willing to work with me on a settlement. I owe this creditor a little over $5000 and they are willing to settle it for $1258 and I can make this in four payments. I would be thru with this debt by the end of December and then will only have two others to tackel, my credit is already not on the great side, so I am wondering how much more this will hurt it? Any and all feedback would be welcome.

The deal from your creditor sounds very good. Isn't it? Call the

The deal from your creditor sounds very good. Isn't it? Call them and ask how they will be reporting to the bureaus? Don't let them report your account as "settled" in your file. Insist your file to be reported as paid or paid as agreed. This gives a better impact. "Settled" status is looked down by most of the lenders when you will be looking for new credit. You should actually negotiate with them for a fair reporting. If they are willing to remove all the negatives from your file, this deal is the best that you can expect. If you can manage money, you won't have to take the services of the debt management company too.

lrhall41

Submitted by IncredibleHelp on Fri, 09/29/2006 - 17:20

( Posts: 492 | Credits: )

IncredibleHelp, Thanks I will call the creditor this week and ta

IncredibleHelp, Thanks I will call the creditor this week and talk to them about how it is going to be reported. I think it is also time for me to bite the bullet and get a copy of my credit report so I can see what I need to do to start getting it cleaned up.

lrhall41

Submitted by nas866 on Sat, 09/30/2006 - 04:31

( Posts: 31 | Credits: )

Nas-e sure and get all of this in writing- have a look at this t

Nas-e sure and get all of this in writing- have a look at this thread it is full of info on dealin with your creditors,what to offer,how to do it and such http://www.debtconsolidationcare.com/steps.html Hope this helps...KAren

lrhall41

Submitted by Bossy4455 on Sat, 09/30/2006 - 10:45

( Posts: 5854 | Credits: )

Karen Thanks will take a look at thread and see what might be ab

Karen Thanks will take a look at thread and see what might be able to help me. I want to make sure everything is legit before I do anything. I Am finally really ready to tackle the debt in my life and hopefully the weight on my shoulders will start falling off....I do not like the feeling in my gut that I owe people and do not like the mess I have made in the last 12 yrs. All I can do now is look forward and try to change it.

lrhall41

Submitted by nas866 on Sat, 09/30/2006 - 15:54

( Posts: 31 | Credits: )

Materials Available

There are excellent resources available at Amazon.com regarding credit, credit repair, and debt settlement.

Search the books section using the terms "Settle Your Debts" and it will provide you with numerous resources ranging form $9.99 to $24.99.

If you have any questions, please email the help desk. We are going to be providing free form letters on our website that can serve as Settlement Letters for any consumer going it alone.

lrhall41

Submitted by on Mon, 10/02/2006 - 04:00

( Posts: | Credits: )

Beware of debt settlement companies.

Many debt settlement companies are nothing but rip-offs that will take your money and make you worse off. You will be sued and have legal action taken against you. They do not stop interest and penalties. By the time you end up having an account settled you have paid the company thousands of dollars that could have went towards a debt. You may be told that they will stop the harassing calls from creditor but they cannot stop the original creditor from calling you. Also many times collection agencies and law office will call you and the company will do nothing about it. You mentioned that a law firm backs the company. Is the law firm licensed in your state? If not there is nothing that they can do when you get sued. If you need any assistance you will have to pay more for an in state attorney to help you. A lot of creditors will not work with debt settlement companies so your debt will increase and it ends up being paid at 100%. If a creditor takes legal actions you will have legal fees added to the account. In the end you will either complete with the company and have terrible credit or you will need to cancel and fill bankruptcy because of being mislead by the company.

lrhall41

Submitted by on Tue, 10/03/2006 - 07:49

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