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Me and my family has gotten into some serious financial burden over the years. We have about $23000 in unsecured debt. It cost us maybe $700.00 a month. It is really hurting us. We live paycheck to paycheck and what we can't even really afford that without using credit cards.
It is extremely hard. We almost lost our house in a foreclosure but manage to short sell it. We need to do something before it is to late. I have read a lot about credit settlement company's but don't know who to choose? Do you know of any good trustworthy company out there?
I don't want to file bankruptcy. I don't want to file bankruptcy!!
"I have read a lot about credit settlement company's but don't know who to choose? Do you know of any good trustworthy company out there?"
Debt settlement companies and "good and trustworthy" will never ever go together. !!
You didn't mention if all of the unsecured debt was credit cards,but you can try calling them and asking if they have a "Bankruptcy alternative" team or "hardship team"
Explain you are tying to avoid filing which will get them nothing and would like to see if they have a program that will reduce your interest and get you on a payment plan.
You can also try one of the Non-Profit companies like Consumer Credit Counseling (that work through the United Way) that have arrangements with the Credit Cards to get the lower interest and payments.
"I have read a lot about credit settlement company's but don't know who to choose? Do you know of any good trustworthy company out there?"
Debt settlement companies and "good and trustworthy" will never ever go together. !!
You didn't mention if all of the unsecured debt was credit cards,but you can try calling them and asking if they have a "Bankruptcy alternative" team or "hardship team"
Explain you are tying to avoid filing which will get them nothing and would like to see if they have a program that will reduce your interest and get you on a payment plan.
You can also try one of the Non-Profit companies like Consumer Credit Counseling (that work through the United Way) that have arrangements with the Credit Cards to get the lower interest and payments.
Thank you Karla,
I actually did find that thread after I wrote the question. I decided not to go with a settlement company. But I also read about CCCS that you mentioned. Suze Orman ( I think you know who that is ) recommend them so that ought to mean something. I really wany to pay off my own debt. I hope that CCCS can cut the interest rates and my payments. I pay about $700.000 a month now. If they can cut it to 300 - 400 that would help. Do you think that would be possible? Of the 23000 I am owe 12000 is credit cards and the rest is consumer loans from my bank.
Thanks a bunch for you help. I really appriciate it!
"I have read a lot about credit settlement company's but don't know who to choose? Do you know of any good trustworthy company out there?"
Debt settlement companies and "good and trustworthy" will never ever go together. !!
You didn't mention if all of the unsecured debt was credit cards,but you can try calling them and asking if they have a "Bankruptcy alternative" team or "hardship team"
Explain you are tying to avoid filing which will get them nothing and would like to see if they have a program that will reduce your interest and get you on a payment plan.
You can also try one of the Non-Profit companies like Consumer Credit Counseling (that work through the United Way) that have arrangements with the Credit Cards to get the lower interest and payments.
By the way, what an awesome quot you have under your screen name. Very inspiring!
I have 20+ years in the credit industry,hence my great dislike for settlement companies I have seen it get more folks into deeper trouble. The settlement companies fail to "mention" there is no guarantee the companies will accept the settlement amount not to mention the possibility the CC companies could litigate and then there is the tax liability !!!
I have been recommending CCCS for over 12 years. As I have said before many people will say "CCCS will hurt your credit because it shows on your credit report"
Well, hello !! your not suppose to be applying for new credit while on the program and once you have completed the program it will come off your credit report.
I would call them to talk about your situation and see how they could help.
I have to give credit to my husband for the quote he was the one that suggested it
The problem with CCCS is that it extends even longer your payment plan, typically. Most of the credit card companies do not stop the interest, they lower it down. When I worked for GE Money Bank, we would lower it by 25% I believe, which, still had the card at 15% or so. We would lower your payment down, so it kind of balances out.
One of the benefits though is that we would stop any late fees and overlimits.. and stop collections efforts on past due balances. The problem with that, though, is if someone is 3 payments due or more and not eligible for an extension, that your credit report would continue to show X payments due.
To be honest with you, I really doubt they would be able to lower it down to 3-400 a month. I, once upon a time, signed up with a CCCS program, and I owed about 8K, and my payment was over 200 a month to them
I know you don't want to file bankruptcy, but, it may be your best option
The problem with CCCS is that it extends even longer your payment plan, typically. Most of the credit card companies do not stop the interest, they lower it down. When I worked for GE Money Bank, we would lower it by 25% I believe, which, still had the card at 15% or so. We would lower your payment down, so it kind of balances out.
One of the benefits though is that we would stop any late fees and overlimits.. and stop collections efforts on past due balances. The problem with that, though, is if someone is 3 payments due or more and not eligible for an extension, that your credit report would continue to show X payments due.
To be honest with you, I really doubt they would be able to lower it down to 3-400 a month. I, once upon a time, signed up with a CCCS program, and I owed about 8K, and my payment was over 200 a month to them
I know you don't want to file bankruptcy, but, it may be your best option
Thanks for your answer. I don't really think I am a candidate for Bankruptcy. I have not been late more then a few days on my cards, at most and I have never been late on my consumer loans. But I am so tiered of living on 70 dollars a week for food, gas etc after I pay my bills. I really don't have any unnecessary expenses. Anymore. The reason I use credit anymore is to buy food, nothing else.
I just want to cut my payments in half or at least a couple of hundreds to get on my feet again. I don't care if my credit get hurt for a few years. If I have $150 left over a week I would be well off!
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