Over extended debts

Welcome to the forums. Please sign up for a free call from a debt counselor. They deal with debt issues dailey and hopefully can come up with a plan for you. Please also check out any company with a fine tooth comb before you do business with them. Make sure they have a good business record. Best Wishes KYSIDE38

Hi gabsterr

You have few options. Either you can consolidate everything under one payment plan. You will be allowed to pay the principal amount at a lower interest rate. Most of the fees will be waived off. This will lower down the current balance. One monthly payment plan will be set for all your debts.

Or you can settle the debts with your creditors. In this program, you need to default for few months before the settlement company calls your creditors and explains your inability to pay at existing interest rates. A new account will be opened with the settlement company on which you have to put your money every month along with their fees. This will be used while settling your debts. The negotiations will take some time to finalize. Once the proposal is accepted by the creditors, money from the escrow account will be used to pay the debts. Then, the creditors will report your accounts to the bureaus with a settled status. Your debt consultant will insist the creditors to report your accounts in a fair way.

Sit with the consultant and work on all your options before you finalize the right plan.

I would highly advise to consolidate over making a settlement. If you settle it will not look favorably on your credit report. If you can consolidate you probably should.