Debt settlement companies

[Andyman]

I'm just trying to figure out what to do. Most likely a BK but still....I've been reading all about the debt settlement companies. Are they doing anything that I can't do? Doesn't sound like they stop the phone calls.

sucks to be me!

[parsoc48]

No, they do not stop the phone calls, and none of the creditors would call them. We wasted 8 months and $3000+ and only got one small account settled. BoA willing to settle a $10,000 debt for $3000 but after 2 months into those payments knew we couldn't hang on (facing a lawsuit by Chase) and went for the bk option.Sucks to be me sometimes too

[JRScott]

Generally Debt Management Companies lead you into worse problems than you had initially. The majority of those who try to use them end up filing bankruptcy ultimately. The main problem is that DMPs do not renegotiate your due dates and it is voluntary by the creditor. As such you still stack up late fees and other penalties even if you pay the DMP. This means it becomes harder and harder to dig yourself out.

[Over our heads]

We looked into a DMP. And it smelled all sorts of sneaky.
They do not keep the creditors from calling, they do not keep lawsuits from happening. Basically, you are just hoping that the DMP can get you CC to give a settlement amount that you can actually pay for!

And, if one does happen to sue you, they aren't helping you in the least! It will be up to you to fund a lawyer.

IMO, the only thing the DMP route has going for it, is you don't have IIB on your credit report.

[Mi Bankruptcy]

I agree. I had an analysis done before I started my BK planning. They promised to contact the creditors and to negotiate reduced debt and percentage and we would have to cut up the cards. If you are intent to not file. I would try calling your creditors tell them that you are filing BK and you won't include them in the BK if they reduce your debt and percentage rate. Tell them you want it writing.

For example after we stopped paying on one of our cards HSBC called to settle a debt for 1000.00 out of 4,000.00. Good Luck.

[BROKENN]

I did a debt solution 15 years ago, negotiated debts and kept paying. The hits I received on my score because of the constant updates and write offs tanked my score for 7 years. Not to mention that the creditors did not backoff.

If I hadn't been young and afraid of BK, that would of been better solution looking back

[biggomez777]

I did a debt solution 15 years ago, negotiated debts and kept paying. The hits I received on my score because of the constant updates and write offs tanked my score for 7 years. Not to mention that the creditors did not backoff.

If I hadn't been young and afraid of BK, that would of been better solution looking back

Glad to hear that, 25 and declaring CH7.