how much i need to pay for debt settlement?

Question

there are so many debt consolidation companies out there and i don't want receive so many calls from them. here is mine case.

unsecure credit card debts=us15k
(from credit report, it showed 2 cards are in "collection" but i haven't receive any call/letters yet )
overdraft=us10k.
no house, no car (sold out )
no job for 6 momths.

if i go for debt settlement, how much it can be reduce? how much i need to pay each month and for how many years?

i heard there are 3 options:
1- pay for around 50% and your credit score looks better.
2-pay around 20% but your credit looks terrible bad for many years.
3-file for bankruptcy but your credit will be remain bad for many years (7-10yrs) and you can't get a credit card or have to pay high interest for any loan.


thanks

mike



thanks for advise

Answer 1

anything you do will show UNFAVORABLE on your credit score
bad credit, debt consolidation is the same thing..........poor credit history

bad credit - shows on credit report for 7 years from date of last transaction
bankruptcy- shows up for 10 years from discharge date

either way- you will have to endure higher interest rates, no credit cards, no loans for a few years until you re-establish your credit history

Answer 2

You're going to have issues with whatever you attempt due to the unemployment. No one will lend if you have no income and current collections or charge offs on your credit.

DO NOT use a debt consolidation company. Other lenders will treat this as a Chapter 13 bankruptcy if you ever try to establish credit again. What's worse, you don't get the Bankruptcy protection.

Your issue is fundamental, you have no income to pay the debts you have. If you have money saved, offer a settlement to your current creditors. Only pay if you have the entire amount. Making payments won't necessarily help your credit. (It can, but in most cases, doesn't help much.)

If all else fails, bankruptcy is a viable option. Yes it will hurt your credit, but it looks a lot better than a bunch of collections and defaults.

Hope it helps!!

Answer 3

I am an advisor for a debt assistant program. So many people do not understand how the Federal Trade Commission regulated settlement programs work... Regardless It is not a scam, the programs are designed for a certain kind of client. I would do my research look up www.ripoffreport.com see what negative feed the company has. The BBB is not reliable enough. So many debt settlement companies do not practice with integrity or ethics, but the right company is a life saver. also make sure they explained the program thoroughly and that in their contract they take 15% or less for their services. Don't go with a company that puts your money in an umbrella account. It takes a certain kind of licence to have client funding accounts set up and their are only 2 banks in the U.S. the FTC regulates and set aside for this purpose. Also make sure that they figure each debt individually at 44% and that the difference between what you paid into your account and what actually is paid on your debt goes towards your next principle. When it comes to your debt program it is very important to shop, the best price is most likely not the best company. A good settlement company will only take your first two payments to set up account. If they take more then the first two then they are deemed predatory and are more concerned about getting their money then they are about helping you. Know the laws in your state every state is different. Ask them worst case scenario. Also never do a program longer then 36 months. Dave Ramsey is an excellent guide but he and what we do are two different things. Debt Assistance programs were set in place to deal with aged collections, alternative to bankruptcy and for people that are totally overwhelmed. It is a hardship program. If the company you choose is legit one thing they will ask for is your story. They take your story to the creditors on your behalf, does make a difference. One last thing if your debt is 7 years old then the collectors who have it didn't pay anywhere near 100% for it chances are they paid 12-22 cents on the dollar so don't pay them full price back. Hope this helps.

Kourtnie Donihoo
The EDA group
1.866.605.0753

Answer 4

Mike, let me tell you how a debt settlement company helped me out in the same situation.
Your credit card debt of 15k can be negotiated and reduced to $9,000.00.And you can be out of debt if you pay $333.33 for 27 months. Fees is also included in the monthly payments and they wll not take anything upfront. They can work with collection agencies and law firms too.
If you want to more information in detail check this website

http://www.debtfreeafterall.com