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Debt settlement or consolidation - What are the major differences between the two?

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what is the difference between debt consolidation and debt settlement? with settlement the credit report is ruined ...is this true?

Thanks
Carl




Quote:
Originally Posted by Anonymous
take out a second mortgage and consoolidate your credit card debt into one debt, and never ever use the "cc" word again exept when you are selling cc's for a part time job in which you are getting paid to use credit card sells as a second income in paying off the accumulated debts. You can use the cc word again when warning church members and people who respect you about the dangers of ccs, and the consequences of ccs.

WTF im sorry about my language but HONESTLY this is the worst point of advise you can come upon, if you have an already good mortgage that you can live upon working at mcdonalds DO NOT mess with that, leave it be PLEASE. dont refi, dont doing anything with your home. your home is your place to stay and hopefully to keep.
my girlfriend had a mortgage that was 1k a month with a 30 year fixed on a very very nice house, she refied it to pull the money out to not only pay off her debt but to buy a new rental which didnt work. needless to say her mortgage is now 3k a month and she can not pay the mortgage.
Please leave your Mortgages alone.

Sub: #41 posted on Tue, 02/16/2010 - 01:26

Unregistered


when inquiring about a settlement, how much can one settle for if the is BALANCE of 1,143. 23

Sub: #42 posted on Fri, 02/19/2010 - 06:42

Unregistered


Quote:
Originally Posted by Anonymous
when inquiring about a settlement, how much can one settle for if the is BALANCE of 1,143. 23


I would start out small and offer a 10% settlement. All they can say is no. Keep in mind the collection agencies buy your debt for a fraction of the cost, sometimes as low as 5 cents on the dollar, but typically closer to 15 to 20 cents on the dollar. They want to double their money in most cases unless the statute of limitations is nearing that 7 year mark because at that point you can have it removed.

Start small and work your way up, thats the best way to go about it :)

Sub: #43 posted on Mon, 02/22/2010 - 07:05

debtmanagementguys debtmanagementguys

(Posts: 28 | Credits: )

Quote:
Originally Posted by Unregistered
when inquiring about a settlement, how much can one settle for if the is BALANCE of 1,143. 23

How old is the debt? Is it still with the original creditor or is it in collections. This will depend on what they would be willing to take. If you have the money available, and you wanted to just be done with it, be prepared to offer around .40 ctd. You can continue to wait it out and offer smaller amounts but it most likely will take a while. If the debt is fairly fresh - the creditor can wait. It's not a huge recovery for them. When you do reach a settlement agreement, get it in writing first - make sure it states the original creditor, the account number - the current balance and the settlement amount - have the letter state that upon receipt of the payment, the account will be considered satisfied. DO NOT give then ACH authorization for the payment - you can do a check by phone (if it is a one time payment) or send it out in certified funds. Do not make any "token payments" while you are negotiating. Hope this helps....

Sub: #44 posted on Mon, 02/22/2010 - 08:09

nole nole

(Posts: 58 | Credits: )

Quote:
Originally Posted by johnna
Hi,
I am a retired teacher (25years) I receive a pention each month of 2000 dollars and I rent a room in my house for 500 dollars a month. I was also self employed as an artist painting murals and signs as well as printing up ads for local business or groups in the area. But I am about to under go back surgery in the next week as I was injured in a car accident which has left me unable to do the work I was doing to suppliment my income. The surgery I am having done on my back is suppose to get me back to work and take away the constant pain. I do not have health insurance. I am unable to keep up with my bills because I am waiting on a settlement to pay for my huge medical expenses, which I have had to pay out of pocket for a lot of these expenses. I have depleted my savings and lived off my credit cards much more than I ever intended. If I can not work something out soon I will consider going bankrupt. Of course, I'd rather not do this. I own my home. I have about $20,000.00 in credit card debt that I need to get out from under. These card are not too far behind on payments I have kept up on them until the last month. I don't see me being able to pay them for at least six weeks. I will need that time to recover from surgery. Do you do debt Settlement? Are you a member of TASC?
What are your fees?

Johna - I think your main priority right now is to recover from surgery and see where you stand. Although you own a house - it doesn't mean that you would lose it in a BK. It depends on the State you live in. You are also most likely, going to have some big bills from your surgery and physical therapy. Explain to your cc companies about the surgery and if you can't make the payments right now, you can't make the payments. You are going to need money to settle your debts (either on your own or though a company) so you will need to have steady income coming in before you could start any program or self saving. Let me know what happens after surgery and I can give you some ideas. Good luck

Sub: #45 posted on Mon, 02/22/2010 - 08:17

nole nole

(Posts: 58 | Credits: )

Why haven't you just googled the Debt management guys? Their calls are free and their attorneys have a great relationship with TASC and USOBA. They do more than just debt settlement. Some of their debt management plans have 0% rates.

Sub: #46 posted on Mon, 02/22/2010 - 18:56

Unregistered


[QUOTE=;][/QUOTE]
any individual could still contact their creditor directly and get the 0% payback - they offer this directly all the time, all you have to do is ask. If you are having a financial hardship and can no longer make your required payments, and you are already behind on your payments (about 180 days or so) - the banks will offer a couple of different programs (in general) - they will offer you a settlement of about .60 to .40ctd (which you can negotiate down if you have the funds available) - if you can't settle; then you could work out a 0% payment plan (interest and penalties would stop and you would pay the entire balance) but, they will usually require that you pay this over no more than a 60 month period or they could offer you a freeze for a 12 month period. The banks will always start with offers that makes them the most money. SO - If you want to stop the calls and get some breathing room while you are working on saving your money so you can eventually settle - help prevent the debt from going to collections or to litigation - ask the creditor if they would be willing to freeze the balance and allow payments over a 60 month period. You can always go back and settle for less when you have the ability to. This strategy isn't the end all cure all - it's just one that you can employ if you feel that is would help your situation out.

Sub: #47 posted on Tue, 02/23/2010 - 05:59

nole nole

(Posts: 58 | Credits: )

That is easier said than done! I think the reason people are on this website is because they haven't gotten a 0% rate or a decent settlement, in most cases. Its the creditors not budging at all and they are looking for hope. I tried a dmp plan before, it works. Its just nice to know exactly what will happen for the most part at the end whether its a debt settlement or a lower rate. I prefer to know. That's what the companies are for.

Sub: #48 posted on Tue, 02/23/2010 - 08:09

Unregistered


How do debt consolidation or debt settlment effect your credit scores? What will it say on your credit report?

Sub: #49 posted on Wed, 03/03/2010 - 11:05

Unregistered


Is it a bad idea to do debt settlement with the credit card companies myself? I have a very savvy and intelligent constituant who started to and got the "run around" from debt collectors and the credit card companies he initially delt with. He thought he could save money by doing it himself but according to him, it was a frustrating effort. He ultimately choose a reputable company who handled his scenario quickly and efficiently. I'm a little more stubborn and have a little more time on my hands. I don't like the idea of my initial payments going to someone when I could have done it myself.

Sub: #50 posted on Tue, 03/16/2010 - 14:11

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