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I'm thinking of trying t take care of this myself. debt settlement companies all want atleast 10K to do what it seems I could do. Has anyone out there done it on your own? I just need to figure out if it's worth it.




I personally think that if you have the time and patience that it would be worth it you would be saving yourself money for sure.

You should read up in the DIY section to answer any questions your might have and if the answers aren't there then please ask for help that is why we are all here.

Sub: #1 posted on Wed, 09/03/2008 - 20:15

ladybug ladybug

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Welcome to the Community :D Yes, it is possible to do it on your own, that's what I did.

Ladybug is right, check out the Do It Yourself section for tips, and you can also use the search feature here to search the companies you are dealing with. This will give you an idea what others have done in working with them.

Can you tell us what type of debt this is:credit cards,pay day loans, and if they are still with the origonal creditor or collection agencies.

This can help us point you in the right direction..Keep posting and feel free to ask questions..karen

Sub: #2 posted on Thu, 09/04/2008 - 07:34

Bossy4455 Bossy4455
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It really isn't that difficult to settle credit card debt. They only part that stinks is you have to actually negotiate with collectors over the phone and put up with their harrassment. Other than that it really comes down to agreeing on settlement amounts and getting them to send it in writing.

Sub: #3 posted on Thu, 09/04/2008 - 09:44

DOLLARSandSINCE DOLLARSandSINCE
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Do you have to settle for a lump sum or can you settle for less than you owe by making payments? Also, if you settle for less than what you owe will that be reported to the credit bureaus as such or can they report it as settled in full? What does settling do to your credit score? Mine is horrible right now but I want to do what's best for my score.

Sub: #4 posted on Thu, 09/04/2008 - 10:28

thlovely1 thlovely1

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Yes, why not? Every effort you do towards your debt is worth it. When we're talking about credit card debt, just as someone said here you can talk to your lenders yourself and come down to an agreement. Everything you do for your debt counts.

Sub: #5 posted on Thu, 09/04/2008 - 22:05

maries.trash.2 maries.trash.2

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If you set up a payment plan generally you won't get near as good of a percent offer but you get more time to gather the money. For example, they are probably not going to settle for 30% of what is owed and let you drag that payment out over 2 years. Either method is fine though based on your circumstances. The most important part is to make sure you both agree on the terms and it must be in writing otherwise you will pay everything you agreed to and then they will come after you for more.

Settling will improve your credit score. Charged off accounts are a lot worse than settled accounts. How a company reports a settled account is up to that company. Some quit reporting totally. Some report it as settled for lesser. Either way its better than a charge off.

Sub: #6 posted on Fri, 09/05/2008 - 05:43

DOLLARSandSINCE DOLLARSandSINCE
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How long does a settled account stay on your credit report? What about charged off? They might be on there the same amount of time, is it just that the charged off accounts just look worse when you go for new credit? What happens when an account has been charged off and then you begin paying it? How does that affect your credit report?

Sub: #7 posted on Fri, 09/05/2008 - 05:47

thlovely1 thlovely1

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I spent almost a decade working for a CA collecting on student loans. But the other side of our office was credit card collections. All they did all day long was was settle accounts for major credit cards. Our agency handled 1-3rd placements, which means they working contingency collection, not junk debt. These accounts in some cases were being settled for as litlle at 20 cents on the dollar, although most settlements were in the 50% range. Now JDB are paying pennies on the dollar for charged off paper. 50% settlement is a good profit for them.

Lets face it...debt settlement companies are not working for your best interest....they are working for THEIR best interest and profit. After reading different forums, and seeing what people are settling for plus paying fees on top for the privelege of having these settlements negoiated, I no longer wonder why debt settlement companies are popping up all over the place. They are making a killing!!!

To settle any accoount is easy. Once you have the funds available, call the CA. You calling them puts you in control of the call. Also call late in the month....after the 25th collectors are scrambling to meet their goals, especially in August or January. Be calm and talk softly....by talking softly, you are forcing the collector to listen. Low ball them under what you have available....you never know. The older the account, the older the settlement should be. Be polite but firm. If the collector goes off on you, hang up and try again and see if you get another collector. If not, find the main number and ask for a qualified supervisor, noting all names along the way. If they still refuse, wait a day and call back, upping your offer. Let them know the funds are available now...that always brings $$ signs to a collectors eyes. Have them fax you a settlement letter....either have a work fax number available or a local kinko's. Never pay any settlement without a settlement offer in your hands.

Sub: #8 posted on Fri, 09/05/2008 - 06:29

SOAPLADY SOAPLADY
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Quote:

How long does a settled account stay on your credit report? What about charged off? They might be on there the same amount of time, is it just that the charged off accounts just look worse when you go for new credit? What happens when an account has been charged off and then you begin paying it? How does that affect your credit report?


Any type of listing including settled or charged off can potentially stay for 7 years from the date of last payment activity. You can dispute items on your report prior to that time period expiring and if the company does not verify then you can get them removed early. A CO account will lower your score more than a settled account. I am pretty sure the way a charged off account is reported will not change until that account is settled. For example, if you make payment arrangements on a CO account to settle over 6 months then that account would be reported as CO until you complete the 6 month agreement I believe. If you just randomly start making payments to charge off accounts with no agreement then I am pretty sure it won????????t change anything on your credit report and you would basically be wasting your money. If you make a lump sum settlement then the status will change to settled but it takes 30-60 days for it to reflect on your report. I would recommend settling via lump sum.

Sub: #9 posted on Fri, 09/05/2008 - 06:50

DOLLARSandSINCE DOLLARSandSINCE
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