Debt Settlement and views.
Date: Wed, 01/04/2006 - 18:16
I'm in a very bad situation which I have been letting it go for a while.
I work in the construction industry and the business is not going very well right now. I normally earn about 6K a month and now, I'm down to $4K a month. I have around $55,000 in credit card debts and I have 1 car payment to make for about $478. I can barely pay the minimum due right now and since they've increased the interest and min due, I am really facing difficulty.
I am current on my payment and have never been late in making my payments, however, I fear that I might not be able to keep up in the future.
I do not own a house as I am renting. I am seriously considering bankruptcy and am willing to build my credit from scratch, however, 7-10 years is quite a long time.
My wife suggested that I try debt consolidation or debt settlement. I am currently paying about $1400 a month on the credit card debts. As I said earlier, my car payment is $478. My car insurance is $251. My rent is $1440. And my utilities and phone is $400.
I contacted CareOneCredit.com (debt management prog) and they gave me a monthly payment of $1300 for 4 years. I searched them on BBB and they are rated AAA.
I as well contacted debtrelief.net (debt settlement) and they gave me a quote of $800 for 40months, inclusive of their fees and charges.
The $800 a month sounds pretty good right now, as I would like to start some savings. And I do have the intention to pay extra in the instance that I get a windfall or something like that.
According to debtrelief.net (debt settlement), my credit rating will be bad for the time that I am in the program (40months) but it will improve once the prog ends and I start taking care of my finances responsibly.
I would like to get opinion on which is the best solution for me. Any advise is great appreciated.
Hi jnw1211, Welcome to the forums.did you compare the qu
Hi jnw1211,
Welcome to the forums.
did you compare the quote of this company with them? Your registration in this website is completely free. The consultant will call you shortly and offer you a free counseling.
In the meantime, I will like you to do a comparative study between debt consolidation and debt settlement program. Please read the link given below:
http://forums.debtcc.com/forums/comparison.html
After you have done an analysis on these two programs, I suggest you to opt for a consolidation program. This program will ensure regular payments towards your debt account and your credit report will be showing these accounts as 'paid' or 'paid in full'. If you choose a settlement program, the account will be updated as 'settled' in your credit file. This is a derogatory remark and will hurt your credit ratings. Take my advice, do not go for a settlement program. Your credit will score much higher points in the consolidation program rather than settlement. Based on these scores, credit will be extended to you in the future. You will have to think about that from now onwards.
Take a quote from the experts in this website. Do let me know the offer.
