You can do that yourself. Contact the credit card company and negotiate a settlement amount
If you owe 4k then offer to pay 1k if accepted be prepared to send a Bank check immediately
There is no magic wand to make your debt go away. Many of these people who say they can "settle your debt" actually ruin your credit and your reputation and make a profit off of your misery. The "settlement" (write off) will come back to you in the form of taxable income.
Your best bet is to pay off the debt yourself in a respectable manner. Dave Ramsey talks about a "snowball" where you pay off one debt, then use the money freed up to attack the next one and so on. This is not easy, but it’s the only real way to get out of debt.
Run and run away fast from these companies.
If they say negotiation or settlement, they will devastate your credit and you can still end up in court with your wages garnished.
If they say consolidation, it may be even worse.
Google cons of consolidation.
Most people get way, way deeper in debt.
You can easily do this yourself for next to nothing.
Get a book on debt / credit repair at your libary or bookstore.
They will teach you step by step the art of negotiation for lower rates, settlements for pennies on the dollar, or better payments.
All the tricks are in the books – someone some people have figured out they can get filthy rich by setting up companies that only learn common information.
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no such thing. The commercials are just trying to sell you a service. They make a profit off of you being in debt. They have very little incentive to get you out of debt quickly.
You can do this yourself. Contact the credit card company and work out a payment plan or try to settle the debt. That is what they are going to try to do.
The ads are "creative advertising" by Debt Settlement companies. With Debt Settlement, you negotiate with your Creditors for a reduced payment that will be considered as payment in full by the Creditor. The Debt Settlement companies offer to negotiate on your behalf for a fee.
First of all, make absolutely sure you have to go the Debt Settlement route! If there’s ANY way you can borrow from friends or family to get out of this mess I strongly urge you to at least consider it!
If you do have to go the Debt Settlement route, here are some things to consider, especially if you have a boatload of debt and numerous accounts (as I did in 2009):
1)Your Credit Rating will take a hit since settled items are usually reported as “Paid-Settled”. How bad of a hit depends on whether or not the debt in question has “charged-off” yet, but either way it will take a hit.
2) Most Creditors will not negotiate a lump sum settlement until AFTER you are in default, so basically if you want to settle, you have to stop paying before they will even consider settling. This puts you at risk of being sued (see Item 6).
3) Once you default, you will get CONSTANT calls and letters from the Creditor. Once they give up, a Debt Collector will do the same. Be prepared for the onslaught and DO NOT DISCOUNT THE PSYCHOLOGICAL TOLL THIS WILL TAKE ON YOU! If you’re like me and are not used to being unable to pay your bills, each call and each letter is like a punch in the stomach, reminding you that you are incompetent and can’t pay your bills!
4) Debt Settlement can be done on your own. There are many resources here in Yahoo Answers that can help guide you. Do lots of research! I recommend reading the questions on this topic that CatDad, Dixie Darlin’, and Bdancer222 have answered; based on my experience with Debt Settlement, they are very knowledgeable and know what they’re talking about.
5) Do not hire a Debt Settlement company! It can be done on your own with the same or better results, and you’ll save a lot in fees! Generally, they charge 15% of the total debt you enroll in the program, spread out over 12 or 24 months. The fee itself makes it VERY DIFFICULT to save anything for settlement depending of course on how much debt you enroll and how much you make.
6) Be prepared; you can get sued! There is at least one Credit Card company I know of (Discover) that will likely sue not long after you’re in default. AMEX was very also very aggressive in my case (they’ve sued me on two of the four accounts I had with them).
Bottom line: don’t go this route unless you absolutely have to, but if you do have to go this route, arm yourself with research and knowledge and know that it CAN be done!
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You can do that yourself. Contact the credit card company and negotiate a settlement amount
If you owe 4k then offer to pay 1k if accepted be prepared to send a Bank check immediately
There is no magic wand to make your debt go away. Many of these people who say they can "settle your debt" actually ruin your credit and your reputation and make a profit off of your misery. The "settlement" (write off) will come back to you in the form of taxable income.
Your best bet is to pay off the debt yourself in a respectable manner. Dave Ramsey talks about a "snowball" where you pay off one debt, then use the money freed up to attack the next one and so on. This is not easy, but it’s the only real way to get out of debt.
Run and run away fast from these companies.
If they say negotiation or settlement, they will devastate your credit and you can still end up in court with your wages garnished.
If they say consolidation, it may be even worse.
Google cons of consolidation.
Most people get way, way deeper in debt.
You can easily do this yourself for next to nothing.
Get a book on debt / credit repair at your libary or bookstore.
They will teach you step by step the art of negotiation for lower rates, settlements for pennies on the dollar, or better payments.
All the tricks are in the books – someone some people have figured out they can get filthy rich by setting up companies that only learn common information.
/
no such thing. The commercials are just trying to sell you a service. They make a profit off of you being in debt. They have very little incentive to get you out of debt quickly.
You can do this yourself. Contact the credit card company and work out a payment plan or try to settle the debt. That is what they are going to try to do.
The ads are "creative advertising" by Debt Settlement companies. With Debt Settlement, you negotiate with your Creditors for a reduced payment that will be considered as payment in full by the Creditor. The Debt Settlement companies offer to negotiate on your behalf for a fee.
First of all, make absolutely sure you have to go the Debt Settlement route! If there’s ANY way you can borrow from friends or family to get out of this mess I strongly urge you to at least consider it!
If you do have to go the Debt Settlement route, here are some things to consider, especially if you have a boatload of debt and numerous accounts (as I did in 2009):
1)Your Credit Rating will take a hit since settled items are usually reported as “Paid-Settled”. How bad of a hit depends on whether or not the debt in question has “charged-off” yet, but either way it will take a hit.
2) Most Creditors will not negotiate a lump sum settlement until AFTER you are in default, so basically if you want to settle, you have to stop paying before they will even consider settling. This puts you at risk of being sued (see Item 6).
3) Once you default, you will get CONSTANT calls and letters from the Creditor. Once they give up, a Debt Collector will do the same. Be prepared for the onslaught and DO NOT DISCOUNT THE PSYCHOLOGICAL TOLL THIS WILL TAKE ON YOU! If you’re like me and are not used to being unable to pay your bills, each call and each letter is like a punch in the stomach, reminding you that you are incompetent and can’t pay your bills!
4) Debt Settlement can be done on your own. There are many resources here in Yahoo Answers that can help guide you. Do lots of research! I recommend reading the questions on this topic that CatDad, Dixie Darlin’, and Bdancer222 have answered; based on my experience with Debt Settlement, they are very knowledgeable and know what they’re talking about.
5) Do not hire a Debt Settlement company! It can be done on your own with the same or better results, and you’ll save a lot in fees! Generally, they charge 15% of the total debt you enroll in the program, spread out over 12 or 24 months. The fee itself makes it VERY DIFFICULT to save anything for settlement depending of course on how much debt you enroll and how much you make.
6) Be prepared; you can get sued! There is at least one Credit Card company I know of (Discover) that will likely sue not long after you’re in default. AMEX was very also very aggressive in my case (they’ve sued me on two of the four accounts I had with them).
Bottom line: don’t go this route unless you absolutely have to, but if you do have to go this route, arm yourself with research and knowledge and know that it CAN be done!