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I hear about debt settlement and debt consolidation, I want to avoid BK, now that I know that it is not so easy and it hurts your CR really bad.

What is the difference between the two?

Please advise

This topic has been addressed ad nauseum. Try a search in the search box above or look under the DIY section (also above). Very good information there.

Sub: #1 posted on Tue, 09/09/2008 - 14:46

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

There really is no difference. They will both affect your credt about the same. If your carrying more than 50% of your available credit and you've been late on your payments, you've already hurt your credit score. Some debt setllement companies can help you while doing minimal damage to your credit score. Every situation is different. For example, we were able to settle an unsecured $43,000 line of credit for .30 on the dollar before it was even 30 days late.... so... our customers credit wasn't hurt at all.

Please make sure you read all the fine print and know aabout all the fees and thier fee structures before you sign on the dotted line. Debt nettlement and consolidation should only be used as an alternative to bankruptcy.

(Ph number Removed by Shazzers as solicitations are against TOS rules) Please read TERMS OF SERVICE for a more detailed description regarding advertising. Shazzers

Sub: #2 posted on Tue, 09/09/2008 - 19:03

robert195 robert195

(Posts: 2 | Credits: )

debt settlement is the process of negotiating with your creditors to try to get them to accept less than what you owe on your account. It usually does hurt your credit score because you will have to be late on your payments before your creditors will be willing to negotiate a lower settlement amount.

debt consolidation is a debt management plan. It is usually administered by a non-profit consumer credit counseling service. You would pay back the full amount that you owe to all of your creditors, but your interest rates may be reduced and late fees waived. You would make one monthly payment to the debt management company, and they would pay your creditors. Your minimum payment amount would probably be the same or close to the same as your current minimum payments. This shouldn't hurt your credit score. Your credit reports would be noted that you are in the program, but once you finish the program, the note is removed.

Sub: #3 posted on Tue, 09/09/2008 - 19:53

alias1958 alias1958

(Posts: 1230 | Credits: )

Robert - your information is incorrect. As Alias has pointed out, debt settlement will severly impact your score, debt consolidation - when completed - helps your score.

Also, I seriously doubt your company was able to settle for 30 cents on the dollar when the client wasn't even 30 days late...hmm...makes me wonder!

Thanks Shazz for removing their soliciation!!!

Sub: #4 posted on Wed, 09/10/2008 - 06:55

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

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