Negotiate Or Use Debt Consolidation?
We owe around 70,000 in credit debt. Should we try to negotiate our own terms or use a debt consolidation company. We have no assets. Is it true that using a consolidation company would take less time to pay our debt? Most of these accounts (11) are already with collection agencies. I negotiated our biggest one $23,800 last week, two big payment for July and August and 100 for every month after. I asked them if interest and late payments are stopped, she told me yes, as soon as we pay our first payment. I asked her if they will report to the credit bureau that we are current and making payments and she said yes. Are they required to provide anything in writing? I asked her about that and she said yes, I should receive paper a few days before the first payment is due. I hope I'm not being ripped off!
DON'T SEND THE MONEY! Don't send any money until you have a signed (by them) agreement. Don't sign your name to anything no even your letters. The collectors will lie, lie and then when you don't expect it they will lie. If you were to file, would BK 7 be an option? If so, you may be able to keep your cash, and make a fresh start. Don't use your personal check, use a money order. Also, check out the below for more comments and info. http://debt-consolidation-credit-repair-service.com/phpBB2/viewforum.... Well we tried but our lawyer said we could only file Chapter 13. They figured we could pay 2,300 a month to the creditors for the next 56 months. We decided not to do that because we would literally have to live without everything. Only 75 per week on food! No new clothes..........etc. We can't do that. We wanted Chapter 7. We considered me losing my job, or getting pregnant but we don't know if that will change the circumstances. We have done our budget over and over and for us to live normal, ok lives we only have 1,000 left over. But that would change if I got preganant and didn't work. My only worry is that I own a home businesss I started about 2 years ago. It brings in maybe $35.00 a month. In other words I really havent gotten it off the ground because I've had to work to pay bills. I try but it's the type of business that is word of mouth and some advertising that could take 10 years to make a living for us. I'm not going to sell it. It's not even worth anything! Geez. What do you think about our situation? Oh, about the payments I agreed to make to the collections agency. I asked them for the terms in writing and they told me they could not do that. I agreed to checks by phone! (big mistake) $582 for July 31, $582 for August 31st and $100.00 for every month after. Which is affordable for us considering the regular payments were 400 per month. High balance of 23,000. Heres the catch. It's my husbands account from before we married. I called as his wife and they didn't even ask for verification of who I was or if I had the authority to make payment arrangements! Nothing. Maybe I have a way out on this? Thanks for any advice you have
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