Stay away frοm debt settlement companies. Thеу take уου money аnd sit οn іt whіlе аll уουr accounts gο 90 days past due. Thеn thеу offer lowball settlements under threat уου wіll file bankruptcy. Nοt οnlу dοеѕ thіѕ trash уουr credit, mοѕt credit card companies refuse tο play аnd wіll immediately sue. Yου won’t gеt аnу hеlр frοm thе settlement company.
If уου want tο negotiate settlement wіth уουr current credit card companies yourself, уου probably won’t hаνе much luck unless уου hаνе ѕοmе permanent change οf lifestyle situation — lіkе medical disability. Thеn уου wουld need a lump sum fοr thе settlement.
If уου hаνе οld derogatory items οn уουr credit file, уου саn probably settle thеѕе accounts wіth thе collection agency fοr much less thаn thе current balance. Thе older thе account, thе smaller thе settlement offer. Bе sure tο gеt аnу settlement agreement іn writing аnd don’t give thе collector direct access tο уουr bank account.
It depends on the company you use. Some are more reputable than others. Keep in mind, your credit report may reflect “Account settled for less than the full balance” – so ask lots of questions before you retain these services.
References :
There are ratings R1 though to R9, R1 being the best. If you attempt to settle your credit card debt with a 3rd party, your rating will automatically change to R7. This means you were unable to pay off your debt without consolidating.
If by settling you mean collection agency, you are already R8 or R9, so you might as well settle and pay it, or file bankrupt. If you file for that, you will not be able to get credit for around 7 years.
If you pay it, you may have credit within 1-2 years.
Take it from someone who has been there.. Pay your debts and big brother will be happy.
References :
Credit card debt settlements will ruin your credit. The way the work is they contact a creditor and state you will agree to pay a percentage of the debt, meanwhile that settlement company will collect all the funds from you and won’t pay anything (you’re credit is now going bad) until the total settlement is paid. If you are having a hard time paying your regular bills, don’t go this route. You may want to check out CCCS. However, beware, either of these are going to hurt your credit. CCCS will work with your creditors to reduce your payment and rates, but they charge a fee to you included in your monthly payment to them. Also, any creditor will view this as a step prior to BK, so don’t expect to get any additional credit while on this plan. If you’re looking for any easy way out, this is not the way to go.
Instead call the creditors yourself, see if they will work with you on a rate reduction, which will reduce your payment. Pay the minimum on all credit cards except the one with the smallest balance, that one you will pay as much as possible till it’s paid off, then do that with the next one that has the smallest balance. good luck
References :
self help may B best. IF U decide 2 seek help, check these websites;
US National BBB.org: BBB Accredited Business & Charity Directory (READ complaints area carefully)
Ripoff Report: By Consumers, For Consumers (search 4 businesses by name)
References :
Stay away from debt settlement companies. They take you money and sit on it while all your accounts go 90 days past due. Then they offer lowball settlements under threat you will file bankruptcy. Not only does this trash your credit, most credit card companies refuse to play and will immediately sue. You won’t get any help from the settlement company.
If you want to negotiate settlement with your current credit card companies yourself, you probably won’t have much luck unless you have some permanent change of lifestyle situation — like medical disability. Then you would need a lump sum for the settlement.
If you have old derogatory items on your credit file, you can probably settle these accounts with the collection agency for much less than the current balance. The older the account, the smaller the settlement offer. Be sure to get any settlement agreement in writing and don’t give the collector direct access to your bank account.
References :
I’ve done it on my own, and some companies are easier to work with than others. You do have to get at least 2-3 months behind in payments before they will consider it. I was able to settle mine for 35%of the total. I have read that if it goes to a collection agency you can even negotiate lower to even 20% of the debt. you can email me if you like I’ll help if I can on yahoo ltsc2003 is the address. I’m not an expert, just have done a lot of online research, and learned from others. Good luck