Need Your Expert Help
Date: Wed, 06/21/2006 - 19:50
I just spoke with a consultant, who was very nice and helpful, about settling my credit card debt. (I am current on 6 but 1 month behind on 2 credit cards, but with interest/late fees/overlimit fees; I am making NO progress.) I did ask her many questions, but I was sitting here contemplating what to do, I started wondering...
Although the payment plan was very attractive, my debt($16,000) would be paid off in 18 months, and they have experts clean up your credit report.
However, I have my concerns that perhaps somebody here can help me understand:
(1)What if the credit card companies won't agree to settle for 55% of the debt or settle at all since they all range from $5,000 to $500 and I am somewhat current? Am I right in thinking that this would cause my attractive monthly payments to increase? I guess I am just curious of how can they put me on a payment plan when they really don't know how much I will have to pay.
(2)The fee for their services(negotiating with the credit card companies, administrative, & cleaning up of the credit report when it is all done) is $2,400 which is the entire first 2 payments you make and a great portion of 3-6 payments. Please don't get wrong I do understand that there will be a fee, I am just wondering if this is the standard. And if the credit card companies don't settle, I still have to pay them in full.
I appreciate any help that any of you may have for me. I have read many many posts here, but other than that I really don't know much about this type of stuff.
Thanks!
Brandi
Brandi, the counselors are trained in negotiating with the credi
Brandi, the counselors are trained in negotiating with the credit card companies. They can understand their language and know how to propose them the best deal. Once the negotiations are done, you will get a reduced amount to pay in the program. Every company has its own charges. You can shop for some other companies and know your options. I am also paying that much total like you are charged but mine has been included in my monthly payments. So, I am not able to feel the pain of paying it at once. Besides, if you look outside the program, this fee is much lower than the amount you will be paying in interests alone. Do a comparative study and you will find out how much you will save in total.
You are free to shop for some consolidation companies around. You will know a better comparison. If you are comfortable working with the company, read the terms and conditions carefully before signing the contract.
Gretchin, Thank you so much for taking the time to reply. I ju
Gretchin,
Thank you so much for taking the time to reply. I just wasn't sure about any of this. I am just a very relistic person and it all seemed too good to be true. I was just making sure I wasn't missing anything or not seeing the big picture. I didn't want this decision to add to my already bad decision.
Your input was greatly appreciated...