Some questions on consolidation vs. settlement
Date: Tue, 08/15/2006 - 16:01
If I go the consolidation route it seems that things will not really get better. If I understand consolidation only lumps payments into one payment and reduced late fees, etc. Since I have not been late there is nothing to reduce. Would consolidation drop all my CC's to zero interest or something? If not that option seems pointless to me.
Settlement also seems like not much better than BK. Settlement stick for 7 years from the time I start it right? If it takes me 3-4 years to get out of debt through settlement than overall it stuck on my record 10-11 years. Plus I ended up paying back 50% of the debt anyway.
With BK it seems that I would pay out much less and have it on my record just as long.
It seems that BK is just as appealing as settlement. Or do creditors really look better upon someone who got debt free via settlement vs BK. Or are they both ooked at equally bad?
Thanks all.
Also I signed up a while ago and never got a call from anyone for advice. What number may I can for help on which option I should take? Thank you.
Gregg
gregg-sorry about the phone call-how long ago did you do this? M
gregg-sorry about the phone call-how long ago did you do this? Maybe someone has a better option,but if I were you,if it has been a relly long time,I would click on the link Free Consultation,under "Our Services" to the left,or right,however you have it on your computer. The consultant will be able to give you the numbers so you can figure out what will be best for you. I would try to use bankruptcy as a last resort,if there is any other way to do this.Have you tried to work with the original creditors on your interest? I talked to Sears about my sons account and they put him on a program where there is no interest,late fees,etc.,and it will go to the principle,this is done over a years time. Might be worth a try ..Good luck...Karen
Gregg, you have a clear understanding about the various debt man
Gregg, you have a clear understanding about the various debt management programs. You know the consequences of taking a settlement plan and if bankruptcy is filed. You will be benefited by taking the consolidation program. What interest rates are you paying to your creditors now? Under the plan, it will be reduced significantly and you will save huge amount of money in interests alone. Try the free quote the consultant has to offer you. If you have called for the free credit counseling, it takes a day or two for the consultant in your area to call back. The name of the consolidation company will be mentioned in your email used for registering here.
Quote:
Settlement also seems like not much better than BK. Settlement stick for 7 years from the time I start it right? If it takes me 3-4 years to get out of debt through settlement than overall it stuck on my record 10-11 years. Plus I ended up paying back 50% of the debt anyway. |
Did you see this positively or negatively? The amount of money you save in the settlement plan is higher than the amount saved in the consolidation plan, perhaps.
Quote:
It seems that BK is just as appealing as settlement. Or do creditors really look better upon someone who got debt free via settlement vs BK. Or are they both ooked at equally bad? |
Someone who files for bankruptcy takes at least two years rebuilding the new credit. In any case, if your accounts are posted as paid in the credit file, the creditors will appreciate your previous payment history.
Thanks all. I spoke to the main number again and they are having
Thanks all. I spoke to the main number again and they are having someone call me soon.
So consolidation does not total eliminate interest rates just reduce them?
My rates average about 22% with some higher and some lower. Is is possible to settle with the CC companies directly or do they only deal with settlement companies? I hate to pay a settlement company 10% of my debt to do this for me if I can save that money and do it myself.
Take the free quote from the consultant and see what their deal
Take the free quote from the consultant and see what their deal is on the table? If that suits to your pocket or you can manage with your creditors on your own, take decisions as it looks the best for you in the future.
