Debt Settlement on YOUR OWN...... HOW???!?
Date: Fri, 07/10/2009 - 09:14
I decided to clear my debt on my own. Instead of using any of the debt settlement/consolidation companies that are never trustworthy, I would like to contact the banks directly myself and settle...
Now, how do I do this?
From what I heard... I have to be late on my payments for about 3 months in order to settle with them. what if they choose not to do this and transfer me to some collection agency before any settlement happens??
Is it possible to send out a settlement letter BEFORE payments are late?
Any advice useful.
thanks,
Creditors don't settle accounts that are current. Think about it
Creditors don't settle accounts that are current. Think about it. If you are paying them interest each month why would they want to settle for less that the balance?
Also if you can afford to pay the minimums on your cards than debt settlement is likely not for you. You are probably more suited for a dmp which will get you one payment but at lower interest rates.
I know this forum is not for advertising. I just started in a de
I know this forum is not for advertising. I just started in a debt settlement program with an attorney. I searched far and wide.
As far as being late with my credit payments, these are my thoughts. How long is it going to take you to recover from your FICO score vs. debt settlement. Don't forget you have to take into account TAXES and what percentage these ripoff firms charge.
How the heck can you use a debt settlement firm when they charge 15 % plus a monthly fee. Then you have to pay taxes. Lets say you settle for 50 %.
That leaves 50 % savings. Say you pay 15 % + 1% monthly fees + taxes (20%) as a minimum. So now you are only saving
50 - 15 -1 - 20 = 14 %
SO THE moral of the story is, if you have a job and you are not insolvent, you only save 14%. AND THATS A BIG IF. To me, that is not worth all the agravation. YOU HAVE TO CUT DOWN ON THE COSTS or its not worth it.
This means either do it yourself, or find an attorney at a reasonable fee.
I found an attorney who charges WORST case $1300. YES thats ALL COSTS. I am not giving his mame, and I am not advertising for him. All I can say is, SEARCH the internet for 2 weeks at least, find attorneys, and research their fees.
I would not have even attempted debt settlement if it would have cost me more than 2 % of my total balance. PERIOD
ALso, there is a great do it yourself guy on the internet that is the best found. Just search on DO IT YOURSELF. Go through all of them, and you will find him.
I am not advertising for any of them, so there are no links. I am just telling you, they are out there, and you do NOT have to go to a debt settlement company.
Just think, a debt settlement company charges 15 - 20 %. They spend a MAXIMUM of 10 hours on the phone for the next 6 months, gets a monthly fee, and there is NO guarantee of anything. They do not protect you from getting sued, or from collectors calls. WHAT A BUSINESS, I would love to do that, BUT, I have a conscious.
DISCLAIMER: My advice is worth as much as you paid for it, which is absolutely NOTHING
GO GET EM NOW
Debt settlement should be your last resort before BK and it soun
Debt settlement should be your last resort before BK and it sounds like you are not in that bad of shape if you are ready to settle before you start. I am in the process of DIY DS and it has not been easy the last 4 months, I didn't have a choice. If your credit is good I would look for other options.
I have an attorney experienced in DS. Costs me 10% of settled am
I have an attorney experienced in DS. Costs me 10% of settled amount. If you can get an experienced attorney for $1300 more power to you.
As for taxes on debt forgiveness, if you are insolvent you aren't due any 1099c taxes - of course you might want to prove you are insolvent with appraisals etc if you own real estate - but that is a matter to get advice from an Accountant