Credit Counseling vs Debt Settlement?
Has any one ever finished credit conversing or debt settlement? we am seeking for an choice alternative afterwards BK. Any advise?
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When you sign up with a debt consolidation firm, the program involves deliberately ceasing payments to all your creditors to force your accounts into default to attempt settlements for less. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
A better option may be to enter a debt management plan through a non profit credit counseling firm like CCCS. They can negotiate reduced payments and interest but NOT settlements. Contact your local Red Cross or use this site for a referral: http://www.nfcc.org – If this does not work out, then Chapter 7 might be the best option.
Forget those debt settlement companies. Many are pure scams. They take your money and let all our bills go 90+ days past due. Then they offer lowball settlements — some never do anything. Not only does this trash your credit, but most credit card companies refuse to play and will immediately sue you. That debt settlement company won’t be around to help with the lawsuit.
Check into a NFCC credit counseling service: http://www.nfcc.org/. These are legit, non-profit companies that offer debt management programs for a nominal fee. They negotiate lower intererest and payments so that you can pay off your debts. When you complete the program, you will have decent credit.
i looked forever but i decided to go with debt settlement. i used debt free league. they helped me reduce my debt by 50% and i got a lower paymeent too. now im debt free and i have a better score than what i started with because my debt to credit ratio is down and i liquidated all of my debt
As you know, debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount.
If you are in serious debt, debt settlement is a much better option than bankruptcy. A bankruptcy will be listed and hold your credit score down for 10 years, while the delinquent payments incurred while enrolled a Debt Settlement program will be there for only 7 years (and in some instance, even less). So at a minimum, your credit report will be cleared at least three years earlier when using Debt Settlement company as opposed to bankruptcy. Another important factor to remember is that a typical debt settlement program ultimately resolves your debts for much less than other debt relief options. And, unlike bankruptcy, you won’t have to sell your house or other assets in order to free yourself of your liabilities.
It is better to seek help from any reputed debt settlement company. Only such companies can help you save more money than doing it yourself. I took help of freedom debt relief to settle my debts. I have joined their debt settlement program one year back and almost debt free now.
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