Heads-up On How This Will All Play Out?
Q: I've been considering bankruptcy and almost went to a lawyer to get the process started when I ran across an ad from expert debt consolidation for debt settlement. I'm considering goin this route as opposed to filing bankruptcy but I wanted to see if there are any others out there who have gone this route. The company claims to settle debts at at least 65% or you don't have to pay them their fee. What I am concerned about is what the CC companies will do in the meantime as it will take me at least a year to save up enough money to propose a settlement. My accounts as of right now are about 3 months delenquint with no payments. I stopped paying when I realized that out of about $400 a month, only about $75 was actually going to pay down my debt, the rest were in finance charges, late charges, over the limit fees etc. I'm stressedf to the gills here. I want to get out of debt, and this program sounds like a good option to bankrupcty, but I don't want to get into any more trouble than I already have. If I go with these people, is there the chance that the CC companies will sue me while I am trying to save up for settlement? Has anyone else had any experience with settlement negotiators that could give me a heads-up on how this will all play out?
A: I don't know how much debt you have but I am currently going through the same thing. I have a credit score (you need to get yours) of 507. I was able to get a subprime loan to consolidate some debt. I hope it funds tomorrow. Now This will save me about 800.00 a month. I also have about 17,000.00 in collection accounts on my report that need to be paid. I couldn't get them into the loan because of my being a high risk and all. Well, I started calling the creditors myself and working out deals. Many of them will say no at first, but if you write a formal letter stating what you want to settle with or pay monthly they will