What do guys think about Credit Solutions? Are they legit?

Question

https://www.creditsolutions.com/

Answer 1

Most of those debt settlement companies are not going to help you much, and far too many are just plain scams. They will cost you more money than they are worth.

Do you know what happens with the settlement companies ?? First, you are told to stop paying all of your debts and you agree to pay them an amount that goes into an account to accumulate money to make settlement offers. They cannot make any settlement offers until you've got enough money to actually MAKE a settlement. So, for many months, your bills are going delinquent, accounts will be charged-off and your credit is going down the sewer. Most cannot and will not help you if you are sued for a bad debt. They may scramble and try to negotiate a settlement, but if you don't have a good amount in your account, they can't make much of an offer.

IN addition, there is a tax hit you'll take for settlements. Any amount of $600 or more that is 'forgiven' MUST be claimed on your income taxes as taxable income. The only possible way out of that is to prove to the IRS you were insolvent at the time the debt was 'forgiven'.

No.. I'd stay away from debt settlement/negotiation/management companies.

Answer 2

At first it will because the company is in talks with your creditors so they tell you to stop payments until they work up a debt management plan. That only takes a couple of days to maybe a week. Then they will tell you how much you need to pay to each company. My company has the client pay their debt directly to the creditor. We do not make money transactions with the creditors. They pay a monthly fee in order to coach them through the credit repair process but that is all.

Answer 3

Yes they are legit, but as with any of these companies it will hurt your credit. They will negotiate you to pay back less than what is owed. Sometimes it is similar to filing bk.