I just need some friendly advice. I have been mulling over whether to do debt settlement or management since March and, frankly, I can't keep dilly-dallying. So I was hoping to get some feedback to help me reach my decision. **Note: I know the difference between how both work, so I don't need advice on that aspect.
I am a married graduate student saddled with $23,000 in CC debt over several accounts (the largest is $6,500). We are getting nowhere with our debt and can barely afford the minimums. Also, in 2 years when I get out of school, I am going to have a boatload of student loan debt (~$60,000) on top of this.
When I first started looking into this, debt settlement looked viable - we could cut the debt in half and be CC debt-free by the time I graduate. But then it hit me - I will have six or seven collections accounts sitting on my credit report when I finish school. Even though they will say "paid in full," my credit score will be in the crapper and the hopes of getting a house in the not-too-distant future far, far away.
I went *this* close to signing with settlement - in fact, I was going to fax my signed documents tomorrow. However, upon reading the fine print, all the minuses hit me --- crappy FICO score, potentially sued, AND the fact that certain jobs may look at me badly and/or not hire me due to this delinquency.
As a result of this, I am thinking about switching to debt management. Lower interest rates and NO impact on FICO score. This seems to be the most sensible option.
So what am I looking for? If you have experience with either settlement or management, please chime in. I have looked for assistance before, but I find that a lot of advice comes from people who have never dealt with this. My questions are:
- Did you do settlement or management?
- How long did it take to finish (both)?
- Did you get sued? (settlement only)?
- How long did it take for your FICO score to go back up? (settlement only)
- How long did it take for the collections marks to get off your report (settlement only)?
- Did you have subsequent job, home-mortgage, or car insurance trouble due to settlement? (settlement only)
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.