getting nervous

I just started with Settlement too. I never use my home number on any business thing, never did. I kept a spare line for that purpose. They called me 20 times a day for a week or two, all went to Voice mail, then they gave up. I guess they finally are talking to my lawyer..

e,
You are in a tough spot with those three creditors. Citi started softening a year or so ago (after years of assignment to aggressive law firms for collection for a good portion of their non performing portfolio), but the change of address you submitted to direct all communication to a settlement company has increased the chances of assignment for aggressive collection. I am not saying it is going to happen, but that it increases the odds. If the settlement company has also submitted a limited POA to citi, the odds have increased even further.

All that being said, citi has softened up lately. My comments here are based on trends with citi that date back several years.

Discover accounts are, in my opinion, currently the most likely to seek attorney representation and use of courts for collection and should be your biggest concern. The actions taken that I just mentioned on citi accounts apply even more with Discover.

I encourage you to re-evaluate your decision. Your statement that you cannot concentrate on anything else and are losing sleep is an indication that this approach may not work for you. Collection attempts are designed to have this effect and why the tactics work. Your just at the beginning of it. The direction you choose for debt relief should have had an opposite effect than you described. Most will feel at least some measure of relief. That is, unless you dont fully understand the implications.

Settlement works. No doubt about it. If your serious about it. With the creditors you mention, to avoid increased odds of litigation, get to saving fast and furious. Citi will presently offer discount with terms (perhaps not with your settlement company though). Settlement companies most typically wait for charge off and assignment/sale to 3rd parties before their first attempt at negotiating. This goes double for citi & discover accounts. This practice also increases odds of litigation.

When you say "I just want this over with", how serious are you? Your answer may suggest that a free consult with a BK attorney to see if you can qualify for chapter 7 would be a good move. Thats the quickest path to getting it over with. I suggest you do so anyway, if you have not already. The reason is that if you find out you do qualify, that fact, tucked under your pillow at night, may help you sleep and worry less, knowing that your current approach is a last ditch effort to avoid BK but that you can get relief in the worst event. A one time investment of 30 minutes with an attorney (only go with free consult as so many offer it) can lead to 30 extra minutes of sleep every night. Thats a good use of time.

One caution. Attorneys have to eat too and can "sell" you on filing BK. Ethically, if they see the obvious benefit to you in BK, there is nothing wrong with that. I just caution people from filing too early or, filing at all, depending on amount of debt, age, profession, income prospects both current and future as well as medical need concerns present and immediate future.

Mileage may vary.

What is the name of the Debt Settlement Company you enrolled with?

Thank you for the response.

I am very serious about doing this. I guess I am just nervous because I don't know what the outcome will be. I'm worried that these creditors will not work with my debt settlement co. I am trying to save as much as I can. I don't mind paying higher settlements just so that I can get them settled. I just wasn't sure if I should talk to the creditors when they call. My debt settlement company, which is Freestar Financial, advised me not to. I am aware that my creditors are more aggressive than most, do you think they will work out payment arrangements with the settlement company if a settlement cannot be reached?

The original creditors may not work with your settlement company but their assignees after 180 days of delinquency will (most of the time).

Speaking to the creditors if you are easily influenced should be avoided.

Picking up the phone once and a while (weeks apart) to simply state your financial condition, that you want to pay but cannot, at this time, will help you blend in with the rest of America right now.

Its a matter of choice and intestinal fortitude.

Settlement companies are both right and wrong, in my view, to advise ignoring the calls. For many, it will just cause more stress and sleeplessness. However, with no creditor contact, you may miss out on creditor offers right before charge off that are pretty good. These offers are becoming part of many creditors SOP and sometimes beat anything a settlement company can do for you. Reduction, with payment terms, and avoiding the account being reported as charge off on your credit report are all very good goals in settlement. This may not be possible on all, or any of your accounts, due to ability to fund offers. If you can grab just one of these, because they will offer the reduction with payment terms, it may be worth picking up the phone once and a while after a few months of having missed payments.

It is unlikely that the company your are working with will reach settlement with the creditors themselves. Perhaps if you were able to come up with the funds necessary within the next 5 months, but even then, these creditors that you have dont exactly have an open door policy with settlement companies.

Payment arrangements will be available through out the life of these debts whether with the original creditor, collector, or even a law firm. I am a bit distracted by the question though as it is not relevant to "settlement". Also, payment arrangements will be based on inflated balances due to late fees and increased interest rates.

Both of the creditors we are discussing offer balance liquidation plan/hardship programs where they will freeze interest and lower monthly payments for 3, 6, 12 and even 60 month time frames. Citi's guidelines for this have been a moving target and Discover may not even offer it to you at all (at about 5 months delinquent).

Credit portfolio analytics for many years have suggested that 90 days of delinquency is the threshold for when the chance of getting paid on accounts (past this point) drop drastically. This is where you may experience increased collection efforts as well as a beginning to dialogue suggesting there may be options for you.

Perhaps, for you, it would be best to avoid the phone for a few more months.

Pick up the phone tell them who you're working, give them their number, hang up. They're only allowed to call you once per day if you pick up the phone. If you let it go to voicemail, there's no consequences on their part to call you 50-100 times per day. Talk to your DS company about this, they'll explain more. POA's work to some extent. Depending on what state you are in, first party creditor's don't have to abide by them; it's when it jumps to a third party as Someone else pointed out that FreeStar's POA's will have more power.

my story: Home Depot (Citi) - debt $10k went to CA (Northland I think) settled when it was past due 120 days @ 30%
2 Discover cards we to CA after 30-60 days without payment, settled first card $7k @ 25% second card $5k @ 30% both 120 days past due
I have also CC from chase (2 CC) wamu (2 CC) beneficial (2 CC) amex (6 CC) BoA (2 CC) all (with exception of chase still trying to get better deal currently @ 35%) settled and paid within first 150 days or less any where between 20%-30% The only that I was afraid to still fight for better settlement offer was Beneficial since they were worts to talk to from the begining and even consider settlement so when I finally got them to offer me 50% on both CC in 3 payments I accepted.
Do not be afraid to talk to them just to not go into discussion just stay focus and keep repeating you do not have money at this point but you working on this, do not accept any type of partial payment if they ask you to pay something. My strategy with them was (if you can call this a strategy) that I have many cards with debts cannot pay even min due to less income then expected. I told them I could have some funds after liqudating 401k and borowing from family but first I have to talk to all creditors to see if they are willing to settle at at what %. I told them at the same time I will not pay anyone until I have verbal then writen confirmation I can settle with all, otherwise I'm filling BK. I told them I have to call all my creditors so please call back next week when I have some word from others that usually worked this is how I was buying my time because obviously they will not settle when you 30-60 days past due
so far it worked for me I have a spreadsheet with all cards and all balances and keep track % at which I'm settling each card, I'm almost done and avarage I got is 31%
it's a strange filling when you always pay on time wad near perfect credit score (in my case before I defaut on first card 740-750 depends on CB) and all of the suddent you stop paying and people from India start calling you... believe me not the end of the world

Nice Joe!!!

The triple 777's keep coming up for you!! (not really luck, just doing it right, for you).