Debt Negotiation Advice
is going to a debt settlement company a GOOD idea when you have no other options?
DEBT SETTLEMENT COMPANIES ANY GOOD?
Public Comments
- You always have other options. All they do is call and negotiate down the interest rates on your debts and work out payment plans. You can do that your self. Why would you want to pay them a fee for something you can do yourself. Call all of them and work out a payment plan and try to get your interest lowered or stopped. Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off. You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH. Go to the library and get "The Total Money Makeover". Read it and follow it carefully. Go check out Dave's website as well. www.daveramsey.com
- I don't like these debt settlement companies, irregardless if they are "non-profit", they still charge you money. I like Dave Ramsey, too. I was doing his strategies long before I even heard of him. Go to Barns and Nobel and sit there to read the book if you can't buy it, and listen to his radio program for moral support, and ideas. Good luck.
- I went to a debt settlement company due to credit card debt. The way that it works is they advise you to stop paying the credit card companies and begin paying them. They then put the money into a savings account until you have enough saved to "make a deal" with your highest debtor. The company that I went to also charged a "retainer fee." They made this program sound like the way to go. What they did not tell me is that most major credit card companies will not work with debt settlement programs such as theirs. They also advise you to be very secretive to your creditors as not to let them in on "the plan." All in all it turned into a HUGE mistake. I still received constant phone calls from creditors (they promised the calls would stop after 45 days, but this went on for 7 months) When I began the program my credit score was 720, when I finally decided to stop the program my score was 500 or below and my credit report was full of charge off's. I ended up having to file bankruptcy and found out that even if I had stuck with the debt settlement program, the charge offs and my credit score would have been effected for seven or more years. I was able to get my retainer fee back because I filed a claim with the better business bureau but I am now stuck with the consequences of using this program. Hopefully this will help you make an informed choice. If at all possible, seek help from family or find other ways to pay your debt as debt settlement is not the way to go. Hope this helps!
