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When, if ever, should you abandon diy debt settlement and hire a professional?

Date: Wed, 01/12/2011 - 19:30

Submitted by dantheman
on Wed, 01/12/2011 - 19:30

Posts: 860 Credits: [Donate]

Total Replies: 6


For the past couple of years, I have posted here my exploits with DIY debt settlement and as I am nearly out of debt, I want to thank everybody who has encouraged me, egged me on and even those who told me I was a deadbeat (though I knew far better than they!). Settling my debt was my #1 goal in life for 2010, and I have a solid A-. I'm kind of a tough grader, though.


In what seems like 1000 posts on this forum, I have shared my experiences and asked you for help through the process of my 8 Credit Card settlements, totaling a touch over $150,000...now fully settled at an average of 31-32%. And I posted for nearly a year about my WF HELOC, after my home was transformed from a gold mine to a financial hurricane. Settled for 20 cents on the dollar (and it's a pretty high dollar), I feel the greatest sense of accomplishment with that success. For without it, I still might have ended up in court, bk or forever paying on it.


I never received a summons and there is no public record of anything relating to my debt. I have pretty-much saved the next 10 years of my life, that otherwise may have seen me defending lawsuits-not to mention I would have been stressing every day (and night) about the debt and spent every possible cent paying it down. So it is sort of like Independence Day for me, and again I thank everyone who has joined me with advice or questions along the way.


My final debt to be worked out was my Capit@l One SBA loan. I borrowed $100k about 4 years ago in order to cover business expenses and hopeful expansion. Just after taking the loan, the economy tanked and so did any expansion plans. I sold the building I was planning to use as a second office. Soon the money was gone to service my debt, but the payment did not disappear. And with the large settlement payments I made, eventually I could not keep up with the $1600 payment. Back to that, shortly.


As everybody who follows me is aware, I am a do-it-yourself fanatic and never considered using a professional—even to the point of harshly attacking the concept. So imagine my surprise when I signed the forms to have a professional handle this last loan workout/settlement. Even after it was done, I had to check the signature on the form to make sure it was mine.


And now, I can answer the question that I have been asked more than anything else on debt settlement:


When, if anytime, should you have a professional enter the settlement picture on your behalf?


And the answer is quite simple, at least for me:


Have a professional handle debt settlement for you at the precise point where it is so important to have it done right, that you cannot risk doing it yourself with the limited experience you have. For me, it meant the possibility of the SBA liquidating my business (which is a provision of this type loan). For you, it may mean family problems, divorce, mental stability or whatever your breaking point is.


This final settlement issue is still being negotiated with Capit@lOne, so I cannot yet tell you if it panned out. But the indications are that I chose a quality advisor and that it is going to be reworked to something I can handle.


And if that occurs, that will complete the amazing and life-altering journey that has been the elimination of my debt and the beginning of the rest of my life.


Two years ago I was ready to jump off a bridge, it was so hopeless. And now I jump up and down.


Congrats dantheman!! I hope your success story will inspire all the struggling debtors. Personally, I also think do-it-yourself debt settlement is the best. But if an individual does not have the expertise to do it, then he/she should get professional help. Hope your last settlement works out well.


lrhall41

Submitted by Good Nelly on Wed, 01/12/2011 - 22:19

( Posts: 2846 | Credits: )


I am extremely pleased to tell you that my final account with [EMAIL="Capit@l"]Capit@l[/EMAIL] One has been reworked into terms that are better than any expectations. I worked with an advisor on this one because I was concerned that my lack of experience could cost me, on the one account I could not afford it on.

This is an sba business loan and they do not settle these if the business is ongoing, as mine is. In a nutshell, the terms I received allow repayment on a monthly basis at zero interest and a much lower monthly until I have repaid 100% of the principal only. The present value of what it would have taken to borrow the lump sum and pay it back with interest makes this about 50% settlement on a loan that generally cannot be settled at all. This was done in less than 2 weeks by my advisor, with only one phone call involving me....so it was painless.

Could I have done this myself? Hmmm...maybe, but the connection my advisor had at a high level got the deal done.

So now I know that this was a very wise decision and it underscores my point with when to abandon diy for professional help.

I have nothing left to settle now, except that I will probably still lose my home which is barely underwater...if at all. And since I have been unable to sell it and move on for 4 years, that won't be all bad.

I will offer my advisor/settlement agent information by pm, if desired.

dtm


lrhall41

Submitted by dantheman on Sun, 01/16/2011 - 11:37

( Posts: 860 | Credits: )