How much is credit affected when you have a company barter to get your credit card debt reduced?

Question

SAY THEY SETTLE TWENTY THOUSAND FOR ELEVEN THOUSAND< THEY SAID THEY WOULD SEND A CREDIT REPAIR KIT AFTER THE THREE YEARS HAS ANYONE DONE THIS AND DO YOU RECOMMEND IT?

Answer 1

It's like the SECOND poster said. It has a similar effect as declaring bankruptcy. Those companies settle debts with your creditors so they can get your monthly payments down. For example, if one of your creditors you want to consolidate is owed $10,000. The company will negotiate it down to say, $7500 and get your payments lower. Sounds good right? Well, the debt is forgiven but your record indicates you defaulted. It's a bad thing. Negotiate terms with your creditors yourself.

Answer 2

Yes I have done this and I did not notice any ill effects. It just looks like your reducing debt quickly which is generally not a bad thing at all. But choose your company wisely which handles it. Initially it is a pain in the neck until it all settles down and is in place. I used www.christianccc.org and would recommend them for ease of use, trust etc... They were good. I will say that your monthly payment does not really change. It just goes to the principal more so then the interest. I think that is somewhat of a myth that your payment is going to drop. It does not generally.

Answer 3

If you are having someone settle a debt for a lower amount, you are essentially declaring bankruptcy, or declaring your inability to pay the entire amount. In this case, it is a little over half, which is probably mostly interest. The company doing the "bartering" for you is really another loan company that is refinancing part of your debt and paying it off. You will find in three years that you owe a new creditor.

Answer 4

did once and got screwed, never do it again but I plan (hopefully) to stay out of trouble

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