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Am I with the right debt consolidation firm??

Date: Mon, 04/07/2008 - 05:58

Submitted by anonymous
on Mon, 04/07/2008 - 05:58

Posts: 202330 Credits: [Donate]

Total Replies: 6


Last 3 months had been really stressful for me. I was receiving calls from the collection agencies and payday lenders to whom I owe around $26,000. Finally, I have decided to consolidate all my loans (or settle it) under one. However, I'm still negotiating with a consolidation/settlement firm regarding this issue. They were really nice to me and have taken the much needed care to explain their costs to me. However, I am a bit skeptical since they have charged me the following costs.

*Monthly service charge: $60
*One time creditors’ charge (per creditor): $110
*Penalties and other miscellaneous charges: $30

So I have 5 creditors so my initial set up cost is $110x5 = $550 (They said this money will be used for contacting creditors with Power of attorney and this will also stop the calls to me).

Then the monthly fees is basically for keeping my account and services (which includes counseling).

I am new to this debt consolidation/settlement stuff... am I with the right consolidating firm? They say that with settlement I will only have to pay 30% of my total debt (I think I am happy as I will have to 7800+550+some monthly fees). Please help me with your suggestions.


Cullinanreaper,

I make my living in the debt resolution industry.

First things first- debt consolidation/Consumer credit counseling and debt settlement are 2 radically different services with two radically different fee models; not to mention, with radically different sets of pros and cons...

In a nutshell, if these fees were imposed by a debt consolidation/consumer credit counseling company- the fees are totally absurd.

On the other hand, if these fees are associated debt settlement company- the fees could be reasonable (assuming they get the job done).

If you haven????????t already please, please make sure you have chosen the service and company which best fits your needs.

The consequences of making the wrong choice can be ???????SIGNIFICANT???????.

Best Wishes,

Sean McCabe

[color=DarkRed]*site address removed as per the forum rules-Jason[/color]


lrhall41

Submitted by smccabe on Mon, 04/07/2008 - 09:01

( Posts: 3 | Credits: )


I m with a settlement group who are charging a little higher than Cullinanreaper. 65$ monthly fees and 120$ each creditor fees.

Can someone tell me what are the services a settlement company should provide for the fees they charge their clients. How clients will measure the value they receive from a settlement company against the cost they have to pay to obtain their services.


lrhall41

Submitted by on Fri, 04/11/2008 - 06:38

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Ti;s different for different companies. Some/most consolidation companies not only charge you monthly, a percentage of the money you send to them to pay off your creditors actually goes back to them for collecting your money. How long have they strung out your payments? Also this will now show up on your credit report as 3rd party intervention just as bad as a bankruptcy. If you want to know your other options you can call me at my office

Brian Payne
[color=DarkRed]
*phone number removed as per the forums rules-vikas[/color]


lrhall41

Submitted by on Fri, 04/11/2008 - 07:21

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Hi Bpaynelxcn, I'm interested to know about the other options you are talking about. Can you shed some light upon those? debt consolidation and settlement remained the two most known debt programs available so far. I am seriously willing to know if I can qualify for any other program, paying lesser amount towards it.

I have over $5,000 unpaid debt on unsecured credit cards.


lrhall41

Submitted by on Fri, 04/11/2008 - 21:16

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To the guests who have posted here--Be very carefull of someone who posts here that tells you they can resolve your problems and to contact them.

Before deciding to go with any company, please check them out with the BBB>, your states' attorney general and search and see what others say about them.

If you sign up here, it's free, you can then sign up for the free credit counseling and they may be able to give you some suggestions.

Check around and compare also. Always ask about their fees, how long it will take to start paying the creditors, if your creditors will work with them(some don't) and if they are always avaliable to you for questions.
These are just a few questions to start out with.

We also have a Do it Yourself section here that may help you.

Good Luck and feel free to ask questions..KAren :D


lrhall41

Submitted by Bossy4455 on Sat, 04/12/2008 - 09:21

( Posts: 5854 | Credits: )