debt settlement? one time pay off or payments?
Date: Mon, 10/13/2008 - 03:10
if i do debt settlement, am i supposed to make a monthly payment or give them a lump sum? because i don't have a lump sum.
Credit card companies will not settle if you are current, becaus
Credit card companies will not settle if you are current, because to them it looks like you can afford your payments. You have to be several months behind before they start to offer settlements. When I started a settlement program, I stopped paying my cards and when the offers started to come in 4-5 months later, I already had money in a special account to begin to settle. It is really up to the particular creditor as to how many payments you have to make. Some want it in one lump sum, some will split it into two, some will even give you longer. I would say the average is two payments. I am with a settlement company, and they were able to negotiate monthly payments for me on two Bank of America accounts.
Keep in mind, that even though you are not behind yet on your payments, your credit score may still decline due to debt-to-income ratio and how much debt you are actually carrying. People that enter settlement programs are usually already behind with a suffering credit score anyway, so they really have nothing to lose.
past due
Susie is right - creditors have no reason to settle if you're on time with your payments. That means you'll have to be delinquent on your debts which means your credit score will take a hit. But who cares - you're hemorraging $1000 a month! That's a $12,000 a year assuming you're just paying the minimums. I would recommend debt settlement or a Chapter 7 BK. There are several good companies out there. RAM Financial Services can put you into a great program and if you don't qualify they will refer you to a BK lawyer. Rise Above Debt is a good company. debt settlement usa is not bad. Call at least 3 companies and do your due diligence.
