Debt Relief Programs

[Newhomeowner]

I, like many on this site, am on the verge of bankruptcy due to this "economic downturn." I hear about these debt relief programs, and I am wondering if there is any validity to them? Has anyone tried one?

[BKAttyMI]

I highly suggest NOT getting involved in one of these schemes. Visit a good bankruptcy attorney in your area.

[Freddy03]

Don't do it! It will ruin your credit almost just as bad as a BK. Most of these companies have very little success at settling debts. You can still be sued by credit card companies. Good Luck!

[ccsjoe]

There are truly only three ways of obtaining debt relief: 1. develop a budget & increase your income to create a disciplined pay down (yeha right, in this economy increase income???), 2. visit a credit counseling non-profit organization to get ideas on how to manage the debt AND how to call the creditors yourself and negotiate with them for a payoff plan, or 3. see you friendly BK attorney or buy the Nolo book, read this forum, ask questions and go pro se.

[tobee43]

YES...i tried them...got ripped off...wasted my time and money....do NOT pass go....go straight to boardwalk ave...and find yourself an atty....

[Freddy03]

There are truly only three ways of obtaining debt relief: 1. develop a budget & increase your income to create a disciplined pay down (yeha right, in this economy increase income???), 2. visit a credit counseling non-profit organization to get ideas on how to manage the debt AND how to call the creditors yourself and negotiate with them for a payoff plan, or 3. see you friendly BK attorney or buy the Nolo book, read this forum, ask questions and go pro se.

I tried 2 and within months received 3 summons so if I had to do it over I would def not try to settle w/ cc companies because I have found out that if the debt is still owned by the OC they are more proned to sue if they think you have settlement money.

[goodyphilips]

Well these debt relief schemes provide relief to only one entity and that is the companies running them. Its always better to contact an attorney if nothing else is working and bankruptcy is imminent.

[alexloramer]

If you are truly in crisis they might be able to work with your budget and get your payments consolidated and lowered. However, like all the others have said it does hurt your credit pretty significantly.