Need Debt Settlement Advice

Welcome to the Community Wallace :D Can you tell us why you think that is your option? If you look at the site here, you will find there are many options to taking control of your debt, that being one of them.

What do you owe the creditors, and are you behind on the payments?

Also, are they with CAs or original creditors? I see that apparantly 2 are with the OC.

Have you tried to work out something with the OC-such as a payment plan that will suit you? There are such things as a hardship program that will allow you to make payments and they will drop or reduce you payments for a period of time until you can get caught up or paid off, you just have to ask.

Check out the Do It Yourself section also.

As to the companies you mentioned, I have not dealt with them personally, but someone here probably has and can answer that question for you.

If you do decide to go with a company to handle your debt, please check them out thouroughly. You can do this with the BBB, as well as, in some cases ,the atorney general in your state can help.

Good Luck--feel free to ask questions..karen

My business closed in June, but had been going down for 3 years. There's only one income now-husbands. We got in too deep on credit cards trying to sustain our businesses over the past 3 years in hopes of things getting better. It didn't happen. We can't afford the monthly minimums anymore and are just now 1 month behind.

My husband and I have just started a DIY debt settlement. I had a family member lend me some money and I sent all my letters out last week. So far I have only heard back from one of them. I wanted to settle and pay 30% of what I owe. They told me they could only settle for 50%. I told them that I have several creditors that I owe money too and since the funds are limited I can only pay 30% of all my debts with the money I have. He wasnt very nice to me and said 50% was all he could settle for. I thanked him for his time and said if I had any money leftover after I heard back from the others I would call him. The day after I spoke with him he left a message on my machine to call him. Maybe he will settle for less? I figured that I would let him wait a few days before I called him back.
Well anyways, I just started this and I am learning as I go. When I have anymore info, I will post it for you.
Bank of America is one of my creditors, but it already has been written off as bad debt and now a collection agency has it.
One more comment - I did find a website from a debt settlement company that had pages and pages of Companies that they have worked out a debt settlement for their clients and how much they saved them. I actually use it to see how much the creditors have "reduced the debt". For instance The Debt Settlement Company has settled with Bank America 9 times and had sample settlement letters posted on their website. They have settled for 65%, 70%, 70%, 65%, 82%, 80%, 68%, 84%, 84% debt reduction.

I decided to try this on my own since debt settlement companies need a percentage of what they settle for. The money that was lent to me is all the money that I have. I have been trying for the past year to get money to pay off my debts with no luck. And since the economy is a mess with food and gas prices rising (and our business income going down), I dont even have an extra $50 each month to pay for a monthly settlement repayment plan.

wallace,

If you keep your cool and play it smart you should be able to settle these two accounts for a savings of anywhere between 40 to 60 cents on the dollar.

If you have time and are well organized you can actually settle your own debt and save money. Avoid the fees for a settlement program and settle your own debt. If you want there are plenty of cheaper alternatives, do a google search under do it yourself debt settlement and I guarantee you it will cost you less to settle your own debt. At least you will be in charge of your situation and the money you have saved up can actually be put to good use. There are excellent companies that will coach you to settle your own debt for alot less money than you would spend with a settlement company.

I just worked out the hardship program with them. They lowered my interest rate from 27% to 6.5% and my payment to less than 1/2 of what it was for the next 5 years.

can I ask how you did that? Did you do it yourself or use a company to help you negotiate?

wallace,

how much do you owe, and where are you at with the credit card companies?

can I ask how you did that? Did you do it yourself or use a company to help you negotiate?

I believe my providian was the first account that my settlement company settled for me and it was around 30% so i know that they will settle and settle good for you if you keep at it. but then again this was 3-4 years ago, and i did go through a settlement company I just wasnt comfortable doing it myself I figured I would let the people know how to do it, do it for me scince I was clueless. But there is excellent information on this site to aid you in doing it yourself good luck!

I just settled with Bof A for .25 on the dollar by myself today. :-)

BOA left a message on my machine offering to settle for 15 cents on the dollar in 4 monthly payments.

Settle & Guest 59: how far behind were you in your payments? What amount did you owe?

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I have around 21k in debt from BOA, on my first phone call today, they offered me 30%. Will they go lower, or should I settle for the first offer?

I have to say Debt Settlement is hard to go through but well worth it. If you have a lot of debt. This past year really has been hard. husband job had his hours cut. Had a little girl who just turned one. It has been one thing after another. But I have hired an attonery Mark Jump to handle my debt settlement so far things are getting done. Can not weight to get this all behind in the past and be debt free.

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I am in a debt settlement program, and am wondering how long it takes to get it all done, we have 40,000 in debt. When it's all done, how much do they charge you on your taxes? I am unsure of it all and worried about it all.

B of A said they will not offer any kind of settlement until I tell them about my finances. I missed Dec. and Jan payments, will be missing Feb. in one week. I refused to discuss (nicely) what we are making, etc., as I have done that in the past and just told them we have heavy medical bills, which is true, and are on a fixed income. Ozzie, did you have to give them all your financial info? This IS the first time one person called about all three cards which is new. They were all separate prior to this.

to Mand, guest:

I owe the same, 40k, are they will tax you whatever amount is forgiven, as it is considered income.

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Thanks!