Debt Settlement worth $4000.00 worth of debt

Someone who does not have any money to pay such an amount will consider a bankruptcy as the last resort.

One who can manage paying on their own will not enroll in any credit counseling program.

The repayment plan in the debt settlement plan will be lower than in the consolidation plan. If you are able to afford with the payments set in the consolidation plan, settlement is not to be a choice here.

Oops...I meant consolidation...Sorry...

Your first preference should be to pay it on your own. Don't wait to see it going in default because the interest will catch up faster along with additional fees and you will have a scar in your credit file.

If you are unable to pay it on your own, consolidate it.

The accts that I need to consolidate are already charged off or in collections. I have got a few of them paid and removed from my credit report, but these few are still hurting. Do you know of any GOOD companies??

Accounts already in collections / charged off have already tarnished your credit. They are reported with a R9 status. From this point, if there is anyway to repair your credit worthiness until it's within the FCRA reporting period, pay it. There will be some positive effect after the payments.

You will find few companies in your area in the ranking chart. Take the quotes from each company and compare the different offers.

Thanks for that info...I didn't know that was on here..

Most settlement companies won't touch you unless you have at least $10,000 in debt. This comes from my own personal experience as I was enrolled with a debt settlement company for eight months. I would have been going with credit counseling, which is something that I am considering now. I was always current until I entered into a debt settlement program. Have you checked with your local CCCS office? I contacted mine late last week and they should be able to help me. My accounts have now been charged off as well and they are willing to work with collection agencies as well. You can find them in your local yellow pages.

Someone please tell me if debt settlement is different from debt consolidation?

Debt consolidation8 program

Your accounts have to be in default for some months before the counselor starts negotiating with your creditors and explain that you are unable to pay the debts. You have to come up with some money asked by your settlement company before the negotiations begin. This program will stay in the credit report for seven years as a negative remark. This is good for those who are unable to make any payments to their debts and are considering bankruptcy.

debt consolidation program is a better program. Your accounts in default will become current after enrolling in the program. Even if you are current with your payments, the interest rates are lowered down so that your repayments get affordable. The credit report will show your use of this program until you have finished paying everything. This program is helpful for those who want to reduce their interest rates and cannot afford paying the minimums.

I have received email from a company that wants to settle my debt ($30,000 credit card debt)
I am concerned that they might be people who would take your money and leave me worse off than before.