Has anyone ever used a debt settlement company and if so, what was your experience?

Question

I'm not talking about credit counseling, I'm talking about the firms that go to your creditors and offer to settle the debt for a small percentage of the total owed. If you have, tell me what you thought and who you used. Thanks.

WWW.JICINVESTMENTS.COM isn't even close to what I'm asking about. I'm not looking for credit repair, I'm looking to settle the debts. First thing first.

Wow! I am so impressed with some of the answers. I'm going to have to do some more exploration. It will be tough picking a best. Thanks to you all!

Answer 1

Why create more debt by hiring a company. You can call each of your creditors yourself and work something out. If you settle for percentage of the total owed they will want that money the same day though. If you owe 1000.00 they may settle for 600.00 paid in full.
But if you do use a company and spend the money to do this, ask this firm if it will go on your credit report 'as settled for a lessor amount". this may be just as bad, plus you paid someont to do it. I suggest calling directly and try to work something out with them directly first.

Answer 2

I'm certain that you might find every financial solution at: loandirectory.info-

RE Has anyone ever used a debt settlement company and if so, what was your experience?

I'm not talking about credit counseling, I'm talking about the firms that go to your creditors and offer to settle the debt for a small percentage of the total owed. If you ...show more

Answer 3

My opinion ,unless you are talking about commercial debt, you can make settlement offers yourself and save the commission. Here is how I would go about this:

I would set up a special interest bearing account with the money I was willing to use. This way I would only use monies set aside for this purpose.

I would aim to have have each account settled for 50% of the amount owed. For each creditor, I would prepare a written settlement offer. You might want to open by offering to settle for 35% of the total balanced owed and in two payments.

Be prepared to settle for 50% in one payment, but try for the first offer.

Some fine points to consider:

1. Make sure you know who you are negotiating with. Original creditor, collection agency, attorney or is it a company that purchased the debt.

2. If I were dealing with a company that purchased the debt, then I should be able to do even better. In that case I would start at 20% of the balance and aim at 35% to 45% of total balance with one lump payment.

3. No matter whom I would be dealing with. I would get the agreement in writing. Their written offer should include an agreement to report it as settled in full, to appropriate credit bureaus.

Now! If I truely cannot do this for myself and want a third party to do it. I would call a collection attorney and ask; if they would do it for a percentage of what they save you.

Or you can ask a collection attorney to recomend a company that does this. I believe Cambridge Credit Counselling may do it the way you desire.

Should you desire commercial debt managment then have a third party do it.

Answer 4

I tried the credit counseling. They told me to go make more money.

Be careful, though, as some of these companies charge more money than it is worth. Sometimes you can reach agreements with creditors by contacting them directly. That is what I did, and I am happy to say that I am almost debt-free!!!!

Answer 5

Hi, I found a few articles that might help you:

Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html

How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html

What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html

Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581

Answer 6

Google "Total Money Makeover". BUY THE BOOK AND USE IT! I've paid off about $35,000 since Jan 01. Also, tune in to author Dave Ramsey on the radio. Don't use the credit firms. A friend of mine did and they ruined what was left of her credit.

Answer 7

i didnt use anyone i got a copy of my credit report and just started making the phone calls myself most of the places were willing to settle at lesser amounts those who didnt settle i didn't worry about paying right away. Good Luck

Answer 8

If you use a debit settlement company, it shows up on your credit report as a negitive statement

Answer 9

http://www.debtxs.com/ContactUs.aspx
They assign someone to your case and arrange a payment plan.

A friend did, she used Debtxs, in Texas.

I think you have to pay taxes on the settled money, at tax time, as, it is considered INCOME!

My friend was was happy with them, other than having to pay the taxes! That's about all I know about them. You can check them out at http://bbb.org (BetterBusinesBureau)

If you use them, be sure to ask as many questions as you can, about their program, as well as the "taxable" part!

That's all I know about them, my friend said she is debt-free.

Answer 10

NO ,BUT TRY WWW.JICINVESTMENTS.COM. FOR $15.00 THEY WILL SHOW HOW TO GET RID OF THE DEBT YOURSELF. IT REALLY WORKS