My husband and I are about $45,000 in credit card debt and we are drowning financially. We want to avoid bankruptcy, but we can't even make minimum payments anymore. We have considered using a company called Superior Debt Settlement. They have told us that they can settle our debts, set us up with a payment plan and we can be of debt in 3 years. At that time, they pay for 3 cycles of debt restoration so that our credit score will look much better. Is this a good plan or can someone recommend a better plan. Has anyone ever heard of or used this company before?
2006-09-12 06:30:06 · 7 answers · asked by Allie 1 in Business & Finance ➔ Credit
It does sound good, however, I would get that in writing before giving any money. I would also research the company. Also, find out what happens if you cannot pay it in the future (do they get to take everything you own?)
2006-09-12 06:32:50 · answer #1 · answered by Christian93 5 · 0⤊ 0⤋
If they have a satisfactory rating with the Better Business Bureau, then you may be OK. Just make sure you know all the costs of settlement.
If you use a company, there is usually a set up fee, a monthly fee and a fee equal to a percentage of the "savings." In addition, any "savings" of $600 or more means that the IRS will automatically be notified, of which you will be expected to pay taxes on that forgiven debt ("savings") as a form of income.
You can settle on your own if you know how. You may wish to speak with a credit counselor. It sounds like your options will be limited if you don't act fast. Best of luck to you.
2006-09-12 15:47:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Research the company on the better business bureau. www.bbb.com
Ask for testimonials and references from other customers. Read the fine print. Have an attorney review any documentation they give you for legality. Don't sign on the dotted line until you are 110% comfortable with doing so. You're debt isn't going anywhere, so you have time. Often, anything they can do, you can do on your own, if you bite the bullet and make the phone calls.
I actually can't find them on the BBB. That's an enormous red flag right there.
2006-09-12 13:37:57 · answer #3 · answered by sovereign_carrie 5 · 1⤊ 0⤋
Cut up all your credit cards. Continuing to use them with that much credit card debt will ensure that you never get you head above water. Talk to the credit card companies yourself to see if they have any kind of arrangement for freezing the account (so no more interest accrues) while you pay it off, you can also ask to see if some of the charges can be "forgiven" since they are based on interest. Do not borrow to pay off the credit cards unless it is something like a home ec loan that you can afford and will have a lower interest rate. You might also have to work part-time at night in addition to your regular job to make ends meet.
2006-09-12 13:38:49 · answer #4 · answered by smgray99 7 · 1⤊ 2⤋
I have gone through a similar situation- it is a good idea. Going bankrupt is a death for seven years - a a financial death. You will have no credit with anyone. If you do NOT have a record of bankruptcy then life will be much easier. How ever long it takes and no matter how much interest they take - pay it.
2006-09-12 13:38:10 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i hired a lawyer to do my work for me. im in the middle of it all. it takes a long time but i like it more than bankruptcy by far.
2006-09-12 13:36:08 · answer #6 · answered by cadaholic 7 · 0⤊ 0⤋
There are reputed Credit cards that take over your debts.
Consult them.If your bank statement satisfy them they my ask you to pay in there rules if you agree if it is payable by you.
2006-09-12 13:42:36 · answer #7 · answered by SKG R 6 · 0⤊ 2⤋