Debt Settlement Just Starting Process
Date: Tue, 07/28/2009 - 12:30
Also - will any of the CC companies ask for income verification? On a balance sheet we have a lot more going out than coming in so we actually look insolvent. Maybe that is eough or do I need to worry about that? Do I tell them we are making the 40% of debt offer to all our debtors and we have limited cash so the first ones to take the deal get the cash? Is that helpful? Do I hint at Banruptcy as well?
Wehave 100K of unsecured debt and are not late no any payments yet but we know we can't pay and since we are also doing a short sale on our home our credit is going to take a 2 year anyway. As a result we have decided to go ahead and knock out 50% or more of our unsecured CC debt.
Talked to a debt settlement company but they want 15% of our outstanding debt regardless of their performance and that seems too expensive. I think if we plan to have $50K in cash we can do this on our own.
Quote:I need to be late making payments right? Yes, this is be
Quote:
I need to be late making payments right? |
Yes, this is because unless you are delinquent, the creditors will not consider the debt as a bad debt and will not be willing to settle your account for less.
I think you may hint at bankruptcy which will make them think that they might lose all the money and so they might agree to debt settlement. Normally the creditors agree to settle for 40 to 50% of the outstanding debt amount.
You can start settling the debts around the 90 day late mark but
You can start settling the debts around the 90 day late mark but the best time is at 180 days. At 180 days, the creditor will charge off the account and send it to a collection agency. This is their last chance to get any money from you so the deals are usually better. Of course, you need to have the cash.
There are several DIY Debt Settlement programs that provide you all the information and coaching you need to help you along the way. There are two at the top of my blog that you can link to and check out their programs.
Yes, you usually do have to be dilinquent before the credit card
Yes, you usually do have to be dilinquent before the credit card companies will consider a reduction on the debt. It usually will be bought by a debt collection agency after 90 to 180 days. You certainly can try to do it yourself. It really depends on how diciplned you are and if you have the time to devote to it. You can contact me if you have any questions and go to my website for more information on debt settlement. www.certifiedfinancialsolutions.com 877-293-0008
1.Do it yourself. % based fees for this are unfair. Try solici
1.Do it yourself. % based fees for this are unfair. Try solicitation removed
2.Within the first 120 days, don't talk settlement. If they do then fine...but some will sue you early on if you bring it up.
3.KNOW THY CREDITORS. Research their settlement practices and stories here using the search function.
4.Don't be afraid...you are your own best advocate!
