2006-10-15 11:58:14 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
If you cannot pay your debt, and you can't negotiate with your creditors directly, then go to a credit counseling site - not a settlement company.
The settlement company will take your money, but they won't pay your creditors immediately. Your payments will go into an interest bearing account. When enough accrues to pay one or more of your debts, that's when they'll give them your money.
In the meantime, the settlement company will tell you not to pay your bills, while they try to arrange an agreement. Your creditors will continue to come after you for the money, and they do not have to agree to any settlement that the company proposes.
A credit counseling agency will pay your creditors monthly, with the money you send to them. Please note that using credit counseling could negatively affect the way future/current creditors see you, but if you have no other option, it's something to check into.
Here is a legimate credit counseling organization:
http://www.cccsintl.org/
2006-10-15 14:14:22 · answer #1 · answered by milomax 6 · 0⤊ 0⤋
No I have never tried one, however I did sit on a jury for a civil case once and the so-called debt consolidation company was a crook.
Also they charge a fee, so think about it. The money that you pay to these companies can be used towards a bill.
2006-10-15 12:06:21 · answer #2 · answered by DivaD 1 · 0⤊ 0⤋
Why do you ought to warn them which you will report for financial ruin? Is it to cajole them to settle or are you heavily pondering it? financial ruin could desire to be your very final selection and there is one that could paintings for you. it extremely is talked approximately as debt administration, which isn't comparable to debt contract and debt consolidation. With debt administration, you pay a hundred% of your debt, yet whilst your lenders conform to be in touch with the plan, they are going to decrease the interest fee and get rid of expenses. This all enables to decrease the minimum fee you're making so as which you would be able to come back heading in the right direction with a funds. With debt administration, you proceed making funds on an identical time as the corporation convinces your card company to be an element to the plan. you will ought to pay a fee with the fee. Your credit checklist isn't noted which you're an element to this plan like with debt contract. For attention in this plan, you will possibly be in stable status or not. i actually had to apply a debt administration plan when I had over $10,000 in credit card debt numerous years in the past. interior 2 years of enrolling in the plan, I paid off 0.5 of that. i finished there by way of fact i did not incorporate each card I had in the plan. the reason being using the fact whilst your debts are in this plan, they are closed, completely, and that i needed some to stay open. So that's one warning i'm going to provide you before you communicate debt administration. besides this and the fee, you will must be attentive to the words of the plan and the month-to-month fee. a great debt administration corporation won't promise something yet that may assist you're making you money extra handy. the corporation I went with became CareOne credit. stable success.
2016-10-16 05:50:47 · answer #3 · answered by grauer 4 · 0⤊ 0⤋
Yes, there are reputable companies that can help you. There are different types of debt consolidation loans and it depends on your circumstances as to which would be best for you.
It would really pay you to do your own research before doing this. This website has lots of information and advice, and links you can go to for help. I hope you find your answer.
Good luck!
2006-10-15 12:14:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There are maybe 1 in a 1000 out there that are good. The rest are all scams out to make you even poorer. Best thing to do is contact your bank and set something up with an accounts person there. They can help set up payment plans and budgets that you can live by.
2006-10-15 12:01:45 · answer #5 · answered by Aubrey's mommy 5 · 0⤊ 0⤋
do NOT for the love of god, ever use a debt settlement agency...it will not be good in the end. they have hidden fees that they will never tell you about, and if you call to ask about these fees, you can never talk to anyone who knows what your talking about. it WILL be a complete disaster.
2006-10-15 13:23:28 · answer #6 · answered by Boop 7 · 0⤊ 0⤋
Stay away from them...you will be tied into repaying for YEARS. You will also end up paying a heck of a lot more than your original debt.
2006-10-15 12:02:00 · answer #7 · answered by sarch_uk 7 · 0⤊ 0⤋
They work according to my son in the real estate business, however he says if you do it, it will ruin you credit for two years completly and then you must re build there after. Really check into it and dont believe everything they tell you.
2006-10-15 12:01:47 · answer #8 · answered by kickinupfunf 6 · 1⤊ 0⤋