Debt settlement/debt management plan/ or do it myself
Date: Wed, 05/02/2012 05:06
I've been a lurker on this board for awhile. I actually just recently got in touch with credit couseling services regarding a possible DMP. It turns out that they could have me debt free by 2013, however, the payment was outrageous. I think it was actually more than what I pay in a months time to my debts. There was no way I could afford it. So that leaves me wondering- what's left? Debt Settlement- to which the man I spoke with said was a bad idea because I would get taxed on the difference and it would ruin my credit (well considering I'm already behind on most all my bills- I seriously doubt it could do more damage than I already have). Or do I try to do this myself? My debtors all have hardship plans that I could probably afford if I made some modifications to my budget. At this point even bankruptcy sounds good. I'm tired of the stress, tired of being broke and harrassed for money I don't have. I've got about 22K in unsecured debt. God, that sounds like so much I am even embarrassed to put it out there. Something has to give- anyone offer me any advice. I feel like such a deadbeat at this point. I always was so careful with my bills but now things are tight and I am the only income in my household. :sad:
Thanks in advance for reading this ramble...
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.