Am I a good candidate for Debt Settlement?
Date: Wed, 05/14/2008 - 12:26
Do you have to make a certain amount of money? Have a certain amount of self control, determination? Have a certan stress level? What in your opinion makes someone a good candidate for debt settlement?
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MY SITUATION
Right now, my husband and I owe $20,000. We make anywhere from $3000 - $5000 a month with our regular income. (we both work w/ clients who can cancel)
Right now, every dollar we make goes to bills or debt. The only money we spend on food/cat food and gas is from donating plasma, continuing to sell books and odd objects on amazon and craigslist and tips my husband gets from clients.
The last couple months have been really hard with the huge increase in gas and food prices. (I travel about 100 miles each 2 weeks for my job). It seems like we are always behind on one payment and although in the last 4 months have managed to pay off 1 credit card and $4000 in debt....we didn't have enough money for rent last month (because my husband actually gambled it away the night after we turned in our check). We scrambled together in record speed and actually, yes, we did, had to get 2 payday loans in addition to selling our only gold jewelry at a pawn shop (my husband's class ring and engagement ring) and getting a loan from my brother-in law. There is no doubt we will be able to pay off the loans, 1) on the 15th, one on the 30th and the $180 fee we had to pay is worth not losing our apartment. However, I feel like this is getting out of control and I am ready to take action through settlement.
We both got raises at our jobs and have been trying to get second jobs for months. We are finally on the verge of actually getting them (my husband's interview is today - mine is tomorrow).
What do you guys think? I am bad at handling stress, (I get ulcers), but if I can have a plan it may be better. How bad does it get when you are settling your debt?
Being that you are a registered member of the community, you can
Being that you are a registered member of the community, you can dial the 800 number at the right of the screen for a free no obligation consultation. I am sure they will be able to help you.
You have two options to credit counseling and debt settlement. I
You have two options to credit counseling and debt settlement. It sure sounds like you are having a hardship and overextended or very close to getting there so I would suggest settlement. When doing a Debt Settlement program you can expect a pretty big drop in your credit score because your bills have to be delinquent for the creditors to be willing to settle. However if you are a good candidate for debt settlement than most likely your credit is already affected or about to be anyways. A good debt settlement company's can usually settle your debt in the neighborhood of around 40-60%. I suggest you shop with a ton of company's and compare them. Also I would strongly suggest you look them all up on the BBB.
What makes a good candidate for debt settlement? Do you have
What makes a good candidate for debt settlement?
Do you have to make a certain amount of money? Have a certain amount of self control, determination? Have a certan stress level? What in your opinion makes someone a good candidate for debt settlement?
Answer : Debt settlement is an aggressive program and best for consumers that don't qualify for debt management, can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy.Basically it a program for people in a hardship.
thanks guys. I think we are going to go for it. In the las
thanks guys.
I think we are going to go for it. In the last 30 minutes or so, I have been reading some articles about debt settlement on the site.
I already have a bunch of questions, should I keep them inside of this post or make new ones?
My husband and I both have decreased credit scores, but mine is significantly better than his (I think a few hundred points). I used to have an 800, now it is down to 600, I think he is in the low 500's, almost in the 400s. Only $6000 of the debt is in my name, the rest is in his. Do married people ever JUST do debt settlement for one person's debt in order to keep a higher FICO score for the spouse?
Do married people ever JUST do debt settlement for one person's
Do married people ever JUST do debt settlement for one person's debt in order to keep a higher FICO score for the spouse? Some do but from what you explained I would probably suggest both of you just do it together as to get rid of the debt asap.
thank you so much for your quick reply. I will take your advice
thank you so much for your quick reply. I will take your advice. My husband and I are talking about this right now. He is worried they will take away his car which he needs for work. As long as he continues his car payments, could another agency take away his car? I don't think they could. However, I know that if they sue you they can garnish your wages. Another question is that if my husband and I really do get second jobs and make more money, will agencies still settle with us or will we be have a problem where we should have just waited for more income and paid our bills on time?
No , they can`t take his car , so long as he pays his car note o
No , they can`t take his car , so long as he pays his car note of course. Yes they will still settle but if and when you get second jobs just save more than what the payment would normally have been and get it completed sooner.
Can I suggest not just doing debt settlement but also talking to
Can I suggest not just doing debt settlement but also talking to a financial counselor about money management? I know we have done both and it's made a tremendous help just knowing that we both are rowing in the same direction financially too. Makes for an even stronger marriage!
