Debt settlement/debt management plan/ or do it myself

If you feel comfortable, do it yourself. You save yourself a lot of frustrations and $$.

Bankruptcy on $22k is not advisable.

So by doing it myself would that be settlement or the hardship programs? I've asked my creditors (all except HFC) about the hardship- and they were all pretty nice and accomodating. I guess there are a lot of people in my situation and the cc companies are a little more willing to work with people. Some money is better than none, right? What did you do Soaplady? Any words of wisdom?

From my research credit counseling services usually have a pay plan that is the same if not higher then what you already pay per month on your own. That is because they are lowering interest rates not minimal monthly payments. As far as the tax issue on settlement it can happen where they 1099c you for the amount you did not pay through the settlment however there is a 982 form from irs.gov to counter that since most people doing this are in a financial hardship anyways their assets do not outway the debt. For people that still end up having to pay some tax on it because they are NOT insolvent & do have assets then they pay per their tax bracket. When I was checking all this out I found not to many people actaully have to pay the taxes on there settled debt if it is done right & they use the 982 irs form. I went with settlement to tell you the truth do to the payment was actually acheivable & it was about negotiating the balances & the savings was huge unlike counseling that had the high payment like you found along with no balance reduction & still not the best rates. I found counseling does report to your credit under each creditor that you are doing that & that is why many lenders in the future will view it as if you did a chapter 13 bankruptcy plan even though you are not, so it hurts your credit pretty good. There is nothing I found that does not but as you stated if you are already having issues on your own then your credit is down do to your situation regardless of what plan you go with. I do know settlement co. names do not report on your credit & the late payments you have had will remain. By the time you finish a settlement program the late payments are old news & the more current info reporting will be all the paid off loan regardless if it says just paid or settled either way not a big deal over the bigger picture. I just did not have the time, energy or all the ends and outs to do this on my own so I went through a few companies checked them out & got it done. I can give you a few to check if you want. Freedom Financial, RAM Financial, & Rise Above Debt, these 3 I can tell you had good reviews. I tell everyone that asks please do not go with the 1st call you make. Make notes on all 3, check them out, then go with one if that is what you even decide to do. Again my opnion & like anything there are some good places that truly want to help & do a good job you just have to find them. I believe a couple of the ones I just gave also have credit restoration included as well!

Hey Under the Gun, check with the 'do it yourself' section for guidance.

Regarding hardship programs, are you still current on your cards? Hardship programs too have their pros and cons. One major problem with hardship program is that the creditor may disconnect the program if you default in it. Do your research before settling for one.

Are hardship programs viewed as "better" than doing settlement? Often times, the account is closed. Is that just as damaging?