Should I cancel my contract with Debt free Associates?
Date: Sat, 11/14/2009 - 10:02
This debt will never go away.
I was told to stop making payments to the creditors, but I am scared what if they are not able to settle, negatives I have read
- I could be sued
- Tax I would have to on forgiven debt
- If they don't settle I have a new higher balance (from late fees)
Cancel, or keep and ride the storm.
Rosieve, I was in the same situation as you in April of this ye
Rosieve,
I was in the same situation as you in April of this year. Was scared of the same problems you are talking about. I had signed up with GHS. I was worried to the point that I got dizzy with all the stress! But here is what I know......if you are willing to ride out the storm, you will most likely get a decent settlement offer. I settled Citi @25% and am close to settling another one @ 22%, not done yet. I would give you one advise...if you have a thick skin and willing to take the calls from the creditors, then you dont need to pay anyone for settling your debts......you can totally do this on your own. I cancelled my contract with GHS and did this on my own.....in the process loosing $1k I paid them for their services.
Anyways, here is what I think you should do -
For the first three months, ignore every single call you get from any creditors.
Once you are past 90 days pick their calls once in a while and bring up settlement. Tell them your hardship and that you are trying to settle. If that does not work then you will file BK (just a threat). They will say go ahead file BK......in that case go consult a BK attorney and give his info to the creditors to make them believe you are serious and not just playing the BK card (you dont have to file it.....they will rather settle with you then get less and deal with the BK hassle)
Between 120 and 180 day mark you will start recieving settlement offers, some of the best ones after 150 days. If they threaten to charge-off the accounts before 150 days dont be scared....they most likely wont and its only a scare tactic. I was told once that my account will be charged off in 20 mins!!!! It didnt even after 20 days from that day.
Dont be scared, keep calm and have a goal in your mind. Lets say you expect to settle for 25% (which I think is doable) keep that much money safe and secured stashed away so you can do a lumpsum settlement, which will give you more leverage.
Good luck with your settlement. From my experience, its a mind game. They will take whatever they get but its all about who blinks first. Dont show you are scared...never!
They are rated a D- with the BBB (Debt free Associates). With
They are rated a D- with the BBB (Debt free Associates).
With a rating like that, not so sure I would hire them, it's your call though.
Most debt companies are a scam and will only take your money. M
Most debt companies are a scam and will only take your money. Most do no even call your creditors until after you get served with a lawsuit. Lawsuit, you ask? I'm sure you were told it would never get to that point. Trust me when I say that if your account gets to an attorney, you had better get on the phone yourself and get arrangements made or you will get sued!!