cover minimum payments
Date: Thu, 05/29/2008 - 12:27
First, a bit of background. Wife and I are both employed, good jobs, well paid. credit card debt - accumulated through bad discipline, first marriages, etc. - is close to $70K. A few cards are 30-60 days past due. Perhaps something a little unique is that it is a lot of smaller cards - store cards, etc. - as opposed to larger bank cards, although there are a few of them. Due to child support and other obligations, we've reached the point where we can't cover the minimum payments. Credit right now is just OK, because we've struggled with this situation for a couple years now until we got to this point.
So here are my questions -
1) is there any estimation of what % of people actually go through their programs? I see a lot of posts about people in plans, issues with companies, but there aren't so many from people who have been successful at settlement over a 2-3 year period.
2) Do people find that settlement companies are still motivated to work for you when they've gotten all of their 15% fee and you're only a little more than 1/2 way into the program? That's my biggest concern at this point - will they still work as hard when they have their fees and I've only saved less than 1/2 of what I will ultimately need for settlements?
3) What other things should I be wary of - I've done my research on potential companies in terms of BBB, IAPDA, TASC, USOBA, D&B, etc. It seems most programs are fairly similar with a variation here and there. Do people find that they are as interested in helping you after you've signed up as when they were trying to sell you to sign up?
Thanks!
The answers to these questions are assuming you are dealing with
The answers to these questions are assuming you are dealing with legit company's with good reputations with the BBB.
1) is there any estimation of what % of people actually go through their programs? I see a lot of posts about people in plans, issues with companies, but there aren't so many from people who have been successful at settlement over a 2-3 year period. A good settlement company will usually have a retention of around 50-%60 %
2) Do people find that settlement companies are still mtivated to work for you when they've gotten all of their 15% fee and you're only a little more than 1/2 way into the program? That's my biggest concern at this point - will they still work as hard when they have their fees and I've only saved less than 1/2 of what I will ultimately need for settlements? Yes they still work hard. The last thing a good company wants is a complaint with the BBB for lousy work.
3) What other things should I be wary of - I've done my research on potential companies in terms of BBB, IAPDA, TASC, USOBA, D&B, etc. It seems most programs are fairly similar with a variation here and there. Do people find that they are as interested in helping you after you've signed up as when they were trying to sell you to sign up? Yes these companys being memebers of Tasc and / or USOBA are important .IAPDA not so much. I took their test and aced it without ever reading their material. All the company pays is like 350 dollars to get an easy test to pass. Honestly its a joke. I have found that the most important things is to make sure the company has a great track record with the BBB and needs to be members of USOBA or TASC.
Here are a few names of some good company's with excellent track records. Superior debt relief , New Beginnings debt settlement LLC , and Century Negotiations.
I hope this info helps and have a great day :D
Please disregard this post from llegrosalf . We do not allow sol
Please disregard this post from llegrosalf . We do not allow solicitations per forum rules.
Debt Settlement - A Few Questions
Thanks 311. We are looking at Superior, actually. While the consultant we are talking to sometimes uses the standard sales approach - "if you are worrying about cancellation then maybe you might not be ready for the program" - he has answered virtually every question I've asked and gets back to us quickly, etc.
It's a decision that I think we're ready to make, but I sure wish I heard more success stories - that's the blessing and the curse of these forums, because it seems more often than not most of the stories are bad ones - people usually don't think to come back to a forum later and tell about all the good experiences they had.
Debt Settlement
Those are actually very good tips from mobile0311.
The reality is that debt settlement can help you save money, but it's no walk in the park. Most consumers drop out early in the program because they cannot afford the monthly payment. If you do not have comfort around your monthly contribution, then it might not be the right program. Also, harassment from creditors is a real issue... so be prepared that you will likely get some collection calls and maybe even get sued.
In addition to Mobile's advice, I would select a Company that has been around for awhile (there are a lot of new companies, and you don't want them to learn how to do their jobs on your account) and a large legal team that can resolve accounts and support you if you did happen to get sued.
So, do your homework. I know that these are good companies:
Freedom debt relief and Century Negotiations and Select Debt Relief and Start Over Today ... but choose the one where you feel you are getting the best and most honest information.
Good luck.
LEGAL ACTIONS
DOES ANYONE KNOW HOW LONG IT TAKES BEFORE A CREDIT CARD COMPANY WILL SUE YOU ( TAKE YOU TO COURT)
SEB , its hard to say. There are a lot of factors a creditor loo
SEB , its hard to say. There are a lot of factors a creditor looks at. They look at a lot if things like what state you live in , do you have any assets , how much you owe and who you owe , the statute of limitations of your state ect....
Could you tell us a little more about your situation so we could better answer that question?
LEGAL ACTION
I live in California and some of the creditors are Capital One Applied Bank card Credit one i am now 120 day past due. I'm wondering if i should join a debt settlement program or just hold off a few more months and maybe i can pay them off. I just don't want to face going to court. my debt is $3600.00, 3000.00 2000.00 and 1200.00
If your bills are 120+ past due it is obvious you are overextend
If your bills are 120+ past due it is obvious you are overextended and thus experiencing a hardship. It certainly sounds like you are a good candidate for debt settlement program. If you do a 36 month program or less in a settlement program your risks are very low of a judgment. Even if you are in a settlement program and you get sued they can still settle on a judgement , but it will settle at a higher % like 60%-80% in stead of the normal 40%-50%. I strongly suggest you check any settlement company out on the BBB and make sure they have a good track record. Also be sure they are either members of TASC or USOBA. Take care and good luck. Hope this helped . :D
Hello SEB, If you are 120 past due your accounts will soon char
Hello SEB,
If you are 120 past due your accounts will soon charge off if they have not already. this means you will begin to receive letters and calls from collection companies.
As mobile 0311 said if you are overextended there must be a hardship. Many times this must be proved in order to be eligible for settlements.
Also, some of these companies will ask for afinancial statement when offerinfg settlements. One thing to keep in mind if you simply just decided to stop making your payments and are earning a good salary you will not be a good candididate for debt settlement.
The sooner you seek help the better and avoid earning extra fees that will make your debt that much more hard to pay.