there are a few that i have contacted, but not sure what one and who i can really trust.
debt shield and another, but have some of you used and how did it go?
only real answers all mean and nasty ones will be reported
2006-10-20 06:43:30 · 9 answers · asked by kmcglidden 3 in Business & Finance ➔ Credit
WHAT COMPANIES DID YOU USE
2006-10-24 08:21:50 · update #1
When we did it, we ended paying 16% of the original debt. Everyones circumstances are different. But paying $7,500 on a $50,000 debt sure helped us out. Of course our credit score was ruined but after 3-4yrs. we were able to re-establish ourselves. It can be embarrassing and sometimes belittling, but sometimes you are in over your head and you have to do what's best for you.
2006-10-20 12:25:37 · answer #1 · answered by worf 1 · 0⤊ 0⤋
Yes i tried debt settlement last year.
dont do it!!!
This is how it really works, the company tells you to stop making payments on your debt immediatly and start saving money in a account (usually a much smaller amount than what you are currently paying ou right now) then they tell you not to contact your creditors and keep saving the money for 1-3 years until you have enough to "settle" your debts. They will also tell you that they will contact your creditors and tell then that they are "handeling" your debts.
what they dont tell you is that some creditors (like mine...) can and will take you to court over your debts. they then can garnish your wages (the amount they take is usually double what your original payments were) and that most of your creditors wont wait 1-3 years for your money or that your credit is beyond ruined and if your creditors take legal action against the debt settlement agency wont be able to help you at all.
The only way that debt settlement really works is if you have enough cash stashed to settle the debt immediatly. And that takes at least 60% of your original balance, but also some creditors wont settle debts at all, most of the time they figure that if you have 60% of the money then you probably can an should pay the rest of the money.
Most people end up filing bankrupty shortly after starting those settlement programs because the companies that promote those things arent very forthcoming with information regarding the consequences.
Bottom line is..
DONT DO IT!! VERY, VERY BAD IDEA!!
2006-10-21 23:23:42 · answer #2 · answered by heartsong96 2 · 0⤊ 0⤋
Debt settlement companies are a VERY BAD idea. Someone else explained how the settlement companies work. There are other types of companies called Debt Management that work with your creditors to work out payment plans. They reduce the interest rates, close your cards...you send them one payment per month and they distribute it to all of your creditors. Consumer Credit Counseling Services are local to each state and are non-profit. CCCS is a very popular debt management company.
2006-10-25 18:42:19 · answer #3 · answered by Sarah 2 · 0⤊ 0⤋
I personally have settled several of my debts by offering far lower the amount due. If you have an account that has been past due for many months and you have been having difficulty paying, many times the credit company will accept a lower payoff.
It never hurts to ask.
Here's one way I approached one of the collection agencies on one of my debts.
I recently was given a few thousand dollars. I wanted to pay off several debts. So, I called the creditor/collection agencies and told them I had the oportunity to pay off some of my debts I had X amount of dollars. The creditor that accepted my offer would get the money. Would they settle for the lower amount?
My debt was $1800 and they settled for $1100. I first asked for $900.00, they did not accept that so I upped it $200.00. They got back to me a day later or maybe it was later that day, I forget. They accepted the offer.
Never hesitate to ASK, ASK, ASK. What's the worst that can happen? They say, "No." ;)
2006-10-25 00:07:07 · answer #4 · answered by Cheerios 1 · 0⤊ 0⤋
I'm not sure what you mean by having contacted a few. I can tell you that I have worked directly with my creditors to settle debts, and that worked out well for me. I paid them an amount that was less than what I owed them, that we both agreed on, and the debt was considered payed. You don't have to work with an agency to do that.
2006-10-20 13:53:56 · answer #5 · answered by Gypsy Girl 7 · 0⤊ 0⤋
debt management companies may help you, but they will not do anything for your credit. You will still have negative marks on your credit score b/c a 3rd party had to intervene. I worked for a credit card company and was in the debt collections dept. They do not eliminate interest and it will cost you each month for them to manage your accounts. You would be better off if you could negotiate a payoff or payment plan on your own.
2006-10-20 13:56:04 · answer #6 · answered by KD 3 · 0⤊ 0⤋
https://www.americanfinancialservice.org/debt-settlement-testimonials/?
We have the best settlement amounts in the industry. You can contact me directly at 1-800-719-6312
2006-10-20 19:00:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
most of these debt settlement company are very bad ,,, stay away from them... the better bussiness used to offer credit counseling ,,, fees were based on you income... what you want most is to get your credit back on track .... debt settlement will not do that,,, that is all still on your credit...
2006-10-28 10:43:53 · answer #8 · answered by RED WHITE AND BLUE 4 · 0⤊ 0⤋
Watch them they are full of tricks.
2006-10-24 13:57:53 · answer #9 · answered by George K 6 · 0⤊ 0⤋