Has anyone tried any of those debt settlement programs?
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Nope. And until the debt settlement plan is paid in full, the consolidation is just as bad as a bankruptcy on your credit report. -
Don't do it. They do not live up to what most of them claim.
I enrolled in one way back in the day.. Made three payments, while unemployed, and then stopped because my unemployment insurance exhausted. Once I looked at my creditor accounts, they were not showing the payments applying to the balances. The balances should have dropped, even if it was a few bucks, minus the interest.. but nope.. nothing.. but the original creditors will take the payment..
because
1) Re-ages the account: Statute of Limitations begins tolling from day 1 again
2) By making a payment, that also constitues you obligating the debt, by paying them.. therefore, another agreement has been made..Comment
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We didn't go thru with it, but we had a financial Counseling Session with one of the DOJ approved agencies.
http://www.usdoj.gov/ust/
They reviewed our finances and fixed up a DMP for us. Debt Management Plan. If we'd have signed into their service, we woulda been completely out of debt in 5 years.
The agencies have agreed upon interest rates with Creditors. Your principal is not reduced at all. In some cases, their interest rates were higher than the rates we had at the time with some of our Creditors. Their monthly payment was $100/mo more than what we currently paid in minimums, and we couldn't afford that. Plus there woulda been a sign up fee and a monthly maintenance fee.
Also, with a DMP, you don't have the automatic stay protection you get with Ch 13. And like Joseph said, it's as bad on your credit as filing BK. So if you're gonna do a payment plan, might as well file Ch 13 and get the extra protections out of it.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Thanks for the info everyone. I did join one about 4 months ago. I should have researched it a little more. I wish I would have found this site sooner.Comment
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The monthly payment they figured for me was more than my monthly take home! Needless to say, we didn't sign up.Comment
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And them even knowing this, are still completely gung-ho to sign you up knowing full well you could never do it successfully.Originally posted by NowOrNeverComment
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