What is our best option?

The only thing helpful I can offer is to click on the "free consultation" link on the right side of this page.

Thanks. What obligation am I under if I do the "free" consultation?

No obligation at all its FREE

If you need all of your questions answered, I can help. No obligation whatsoever. I am in the business of serving those and informing debtors of their options. Good Luck and God Bless.

twoodward - there are a couple of options either debt settlement or debt consolidation. These will both affect your credit score but if you are having issues with having enough money to even buy groceries, then one of these options may be better for you. Also - once you speak to a counselor they can look at all your debts and help you decide.

debt management or consulting services are where the counselor/company works with your creditors to reduce your interest, late fee's and possibly reduce your monthly payments. This service usually combines all your debts and you make one monthly payment to them. After 5 years all your debts are paid off. This affects your credit alitte while you are in the program but not as much as debt settlement.

With Debt settlement - you let your accounts go late, you stop making payments and put your funds into a savings account, once you have enough funds the DS company will try and settle this account with the creditor for less owed, usually 40 - 60% of the balance. During this time you credit score does take a big hit as you aren't making any payments and these accounts go later and later. For people with huge amounts of debt - sometimes this the only way and to avoid bankruptcy. The time span is usually shorter as creditors won't wait forever to settle accounts, so usually 1 - 3 years depending on the # of accounts and amount of debt.

If you decide to use either of the options above, make sure you check the company out with the BBB, do research here on this forum, and never sign anything until you understand all the fee's!

Along with jb I am planning my own debt settlement as well, anyone can do their own debt settlement and creditors typically want to deal with their own clients. However, if you do not have the confidence to do it yourself, there are some companies that will do it for you for a fee. debt settlement companies do have more experience with creditors and know how the creditor might react and what works best with each creditor.

My feeling is that if you are having a true hardship and they are convinced you are a risk of no repayment, you have lost your financial ability to make monthly payments, they will eventually settle with you.

Read all the information on this site, it's very helpful.