Settlement vs. consolidation

hi Ginnybee, I'm not sure what it is that you're asking here. can you be a little more specific?

I guess what I'm trying to determine is whether there is anything that would make settlement preferable to consolidation? Like debt ratio, for example? Would it make sense to settle if your debt ratio were at some particular point, instead of consolidating? You can read and read and read, and there are conflicting opinions given by debt consolidaters and debt settlers, and of course, each point out their own reasons why one is better than the other. Looking for advice and opinions from those who have considered them both already!
Thanks,

Ginnybee,
I'm sure that the answer to that question is different for everyone. I had a student loan that had a rather large interest rate. Some stuff got shuffled around, I didn't stay on top of things..Well, I ended up not paying on it for about 6 months. By this time there were all kinds of fees and stuff..But the loan company offered me a settlement deal. It seemed sweet, but then it turned out that a credit counciling company could bargain with them and bring down the interest rate, throw in consolidation on 2 credit cards, and make the entire thing a lot cheaper than if I had settled.

Well, my original thought (and I keep coming back to it) is that I want to pay my debts, but I'm afraid they're so high, that there just isn't enough money after the mortgage and basic living expenses that I won't be able to do it. There is nothing left to "trim" down! While consolidation was my first thought, when I signed up here, I was referred to Superior Debt, which only does settlements, as near as I can tell. Why would that be - the referral? I want to be able to do this on my own, and privately, of course, as I hold a high level position in my small company. If others were to find out, it would be a very uncomfortable situation, and I'm afraid that it will ruin my career. Consolidation or settlement????? Bankruptcy has entered my mind (for a nanosecond) for the reason above. I'm a little nervous about this whole thing, but I MUST get this under control. (When do you start sleeping again?)

Thanks for any advice and listening....I have felt better reading the forums, even though I don't have the payday loans that many seem to have. Those places are criminal!

Probably my idea of a settlement and what really is a settlement is very different. I was assuming that meant basically the creditor agrees to not add any more fees or interest if you promise to pay. Is this right? Have a heart to heart with the company you were recomended to..tell them your concerns and don't be afraid to ask them to explain it all to you a million times. It is, after all, your peace of mind! The people who end up helping you are only going to do what's best for you. Also, call other places and see what they have to say. It doesn't hurt to check, although it sounds like you're up against it on time.
Please, don't worry. It will be ok, I promise. No one has to know anything you don't want them to. And so what? we all have our crosses to bear, don't we? i think you can start sleeping again NOW because once you aknowledge that there is a problem and become proactive then you're on your way.

All I can say is that it depends upon various facts. Obviously a counselor will be able to give you more valid reasons, however, let me put my 2 cents.

Settled accounts are considered negatively in credit report. So if you can update your records as paid or paid as agreed, that is good for you.

Some settlement companies are there that keep the installments paid by the debtor with them initially and to disburse it among the creditors lately. As a result some late fees are piled up. But the company you have referred above is holding satisfactory record and has good reputation in the industry. So you can expect a good service from them.

However, if you have any doubts regarding the service offered here, feel free to contact the site admin and customer care rep. You can collect the contact details in the contact us page of the site. Keep us posted.

So if you go with a settlement company, it will show up on your creit report as a settlement or is there a chance it could show up as paid as agreed?

So if you go with a settlement company, it will show up on your credit report as a settlement or is there a chance it could show up as paid as agreed?

I opted for settlement rather than consolidation for myself. One, I had all unsecured debts. Two, I was able to afford a higher monthly payment to keep my program to around eighteen months. Yes, there are fees involved but that's okay with me. Your credit score does go down while your are in the program. I was able to keep one card for emergency purposes only but I haven't found it necessary to use. After my program is completed, there is three months of credit repair that is provided by my debt settlement company. This was a decision I agnoized over for about three months. It's nothing to enter into lightly.