Settling my own debt!
Date: Wed, 10/05/2011 - 07:03
Settling your debt
Congratulations on attempting to settle your debt; you'll feel much relief when this is behind you.
I don't suggest doing anything at this time, as your accounts are only about 60 days delinquent if you made your most recent payments approximately three months ago. If you can provide additional information, such as who your creditors are, you'll receive more assistance as the negotiation process begins.
Please also know that not all debt settlement companies charge up-front and monthly fees. Just wanted to clear that up, because so many people post this statement on these forums, and while there are a lot of unethical companies out there, not all of them are bad; if you conduct the proper research, you can find an ethical debt settlement company.
Keep us posted as your journey continues. Thanks so much!
Quote:Please also know that not all debt settlement companies ch
Quote:
Please also know that not all debt settlement companies charge up-front and monthly fees. |
But they do charge fees, often fairly hefty ones. What it comes down to is that they are not going to settle any account until their fee is paid, whether it is up front or back end.
As you know, I worked as a collector for almost a decade. ALL of our clients from student loans to credit cards gave us authorization to settle...we had blanket settlement agreements from every client we had. This meant we had to authority to settle on any account up to that % amount. We could ask the clients to settle at a higher rate, given exceptional circumstances or hardship.
We had people asking for settlements everyday...so how did we decide how much we would accept? It would be subjective based on what was on their credit report, employment, proof of hardship, how nice the debtor talked to us and if the sun was shining. It was up to us. I can however tell you one thing...if an attorney or third party called, we never gave them the maximum settlement available nor did we work as hard to get them the biggest settlement. We figured they either did not have the balls to ask or they had more money than they were telling us about. Same went for debt management plans....student loans could not be included but our credit card division would ONLY accept payments thru a non profit consumer credit counselling service.
I will tell you one thing about settling, particularly in the month of October. Octobers commissions are paid in November....it is the collectors christmas money. Offering a settlement in the last 10 days of october will more than likely be grabbed quickly.
interesting soaplady -- I did not realize that -- but it makes s
interesting soaplady -- I did not realize that -- but it makes sense -- I do know the end of the month is the time to call --
thank you :) -- with your help and others on this forum I am moving forward slowly and on my own --
I remember last year when I posted the same questions about starting out -- you said you can do it yourself!! and I am :)
thank you :)
I am going to disagree with you Soaplady sorry but I am with a d
I am going to disagree with you Soaplady sorry but I am with a debt settlement company and yes they do charge a fee, but I am VERY happy with the company that I have. The first month that I paid all my money went into my account to jump start my funds. I started my journey in Jan of 09 in July of that same year they settled a HUGE well what I consider huge balance with BOA for 25 cents on the dollar. In 2010 I was able to settle 3 accounts. I didn't have enough funds to cover what they settled on one account for, so they put money into my account(from fees that I had paid) and paid that creditor off. The latest account they settled for me again I didn't have quite enough money so they again put money in my account from the fees that I have paid and settled that account. I am down to one account and that one will be paid off sometime soon I hope.
If I would have had the money all at once I think I might have tried to do this on my own. But I am not a lucky person and I know I would have screwed up something along the way so for me it was nice to have someone do the work for me. I don't mind giving them a percentage of my payment to them for the work that they are doing for me. They are always willing to talk to me and I get calls from them frequently just to see how everything is going. If you think you can do it by yourself by all means go for it. I just didn't have the knowledge or the guts to do it on my own. Good Luck
dept
idk i needed help i couldnt do it my own. instead of company that takes my money i know am gonna use a counsle company and management so they can help me with everything including my household budget, The rthing is not only gettging rid of debt but also managing it
soaplady is correct on the settlement companies charging fees...
soaplady is correct on the settlement companies charging fees... at the top of her post, she quoted mariemagee who is the one who said they all dont charge the fees..
to the original poster:
most companies will not talk settlement after only 3 months late, they want to put you into a hardship plan.. but it is important that you keep in touch with them, if they are ringing your phone, talk to each creditor at least once and month and keep your story the same each time in regards to your hardship, and that you simply can not pay. and dont let them bully you into hardship plan...
keep in mind, that if you have a low balance (say less than 1000), they most likely will say you do not qualify for a settlement (after 180 days)....
we have no idea who you owe and how much your balances are per account, so without knowing that, we can not really advise you as to what to expect per creditor....