Good debt settlement company

Hello, does anyone know of a good debt settlement company? Thx!

My father has been a realtor allll my life and when it comes to buying a house any outstanding credit goes againist you. You are best to work out payment arrangements with the companies and pay off the debt, then work on getting a house. I am with you on all of it. Down to the loving partner. My fiance’ knew what bills came with me and still wants me. Must be love. I am just getting ready to start back to work and plan on just putting money in an envelope for each debt until I have enough to pay it in full. Foruntely my mother took over my credit cards and I will have to pay her back as well, but she would rather me pay these other guys off first and then pay her off. When i get half of each bill saved up I plan on calling the companies directly, not the collectors. I am going to let them know I have this much and this much only and can send it out today if they will take it and close out the account. We shall see what happens.

I am brand new to this great blog and am looking for information on debt settlement companies. My husband and I have close to $40,000 on our credit cards most at 30% or more interest. We can no longer make the minimum payments. I have talked with CCCS but even their program is too expensive for us. I have been triing to get the money together to get CCCS started for 2 months and I can see now that it just isn’t going to happen.

I have been talking now with debt settlement companies. Has anyone had success with this? I do have one in mind I don’t know if I am allowed to post the name or not. I am a bit leary as they take all their fees out first so it would be almost a year before a decent amount of money would be in my account to settle with. Then over 2 years before the last credit card would be paid.

I don’t think we would qualify for chap 7 and from what I understand chap 13 would be payments for 5 years so i would like to avoid that.

I have done a quick search on this site about settling them myself. Have many had luck with this? It seems I have heard many(not here) say they have had no luck trying to settle themselves. I am already 2 -3 months behind and don’t want to waste time trying to do it myself if its not going to work.

Sorry this has gotten longer than I had planned! I appreciate any advice or ideas! Thanks!

Re: Debt settlement

I don’t think it’s a good idea either. I have a bunch of debt (we’re not drowning or anything) and we just got the keys to our first home yesterday. We went with a mortgage broker who was able to get us the financing. Of course our mortgage rate isn’t as low as at a bank, but in 3 years we’ll be able to refinance with a regular bank and get our payments lower.

The other issue is that I don’t believe stuff really leave your credit profile. When we were getting hte house they brought up stuff from 1999. And with computers, you never really know what stays on there and what is off. Who knows. They maybe just note your old old stuff in a different column.

Until they invent a time machine with which I can go back and make ‘the other choice’ concerning some decisions I made earlier in life, I think we’re sort of stuck.

Charge-offs and unpaid bills stay on your credit report for 7 years. Bankruptcies are there for 10. Check your credit reports regularly for bad information – it happens frequently. WE have a bunch that shows charge off – then paid after charge off – we have sent them proof of everything being paid and it really doesn’t seem fair that they show it that way since they were paid.

Items remain on your credit report for 10 years and “count” for 7 years. Which is amazing to me because if you messed up at 20 it will haunt you until you’re 30 or longer. If a bad credit rating will help keep you from borrowing again, that’s not altogether a bad thing. đŸ™‚

Do it your self, and it looks bad if you are trying to get other credit, as if you were not responsible enough to pay your bills in a timely fashion, while it does take longer but t is worth it in the long run.

Debt settlement

I am considering debt settlement, i have about $28,000 in credit card debt. I am not behind on payments and I can afford the payments. I want to buy a home and i know this type of debt does not look good on my report. I don’t know if i should go through with this, they say they can reduce my debt by $12,000 but i’m not comfortable with stopping my current payments to these creditors. if anyone has hired this type of company i would really appreciate any advise thanx.

Don’t do it! I would look into other avenues.

I had about the same amount of debt after being laid off from a well paying job and finding I couldn’t find a similar income. The Debt Settment Company (DSC) will tell you that things will be fine. They gloss over the fact that you won’t answer the phone anymore and will become afraid of the mail as eventually you’ll have collectors suing you.

Basically what happens is that you stop paying your bills. The DSC *wants* your account to go to the collectors as it’s easier to settle with them. in the meantime, you will save your money and let them know when you are ready to pay off each card. All you see is the money you’re saving. You’re not thinking about that while you pay off the first couple of cards the first year that you won’t be paying off the “last couple of cards” for quite some time.

My credit is shot. I am *unable to get certain jobs* because of this. These days some employers check your credit history. I got married in April. My wife knew all about my debt and married me anyway. (God I love that woman!) We have experienced a lot of difficulty and awkwardness because of my now ruined credit. I carry this weight on my shoulders everyday because I can’t do things with and for her until I get this monster I’ve created behind me.

So again, think long and hard about this and then don’t do it anyway!

Closing Accounts

Does anyone know of the ‘rule of thumb’ when it comes to closing accounts that appear on the credit report, with zero balances? We’ve paid off a few things and they are at 0.00 but I’m not sure if I should close them to reduce the number of accounts OR leave them open? Not sure which is better.

You should keep them open; your credit history (length you had a credit account open) is a very important part of your credit score. Leave them open as they actually help your credit score by having “proof” of your credit history. The older the credit line, the more credible you look to potential lenders in the future.

I’m going to add though, in many cases, if you don’t want to use the account again, I do close them. My fella has all these different accounts open and owes on ALL of them. When he wanted to get a loan to pay all those off, and go to a smaller payment with 1 check a month, he was denied because he ‘has too much credit’. He has no way out.

I did close a lot of my accounts, except for a Target card and JCPenny’s.

All others are gone and some are at level payments every month. I can add more if I want to, but I really hope to get out from all the others before doing anything else.

I would imagine that we wouldn’t qualify

I would imagine that we wouldn’t qualify because our debt to income ratio is high. What kind of loan are you thinking? I think we could get a loan through our credit union for about $15,000. I guess that would combine one car loan with our credit cards. That might work depending on the payment amount. Hmmm.

Yes, I can be that disciplined. Do you mean get a 10 or 15 year mortgage on our house? or get an additional mortgage to help pay off the debt?

Well, I don’t “need” to do these improvements, however I do have an uncle living in my unfinished basement.

I don’t see how it could cost me more than I can afford, if I’m already making those payments. I do understand it could be costly if for some reason we weren’t able to make the payments and the loan was tied to our house. We aren’t struggling to make the payments, I’m just sick of the debt and the interest we’re paying. We have considered just paying off the credit cards one at a time by paying extra on one account, then paying off the next, etc, etc. And then looking into getting a loan to finish the basement later on.

I just figured it would be beneficial to do it now since:

  1. We are already making pyaments of $xxx
  2. That money could go towards debt and the basement, which would make our house worth more
  3. We have someone living down there and it would be nice to at least finish the 1 bedroom and bathroom

It just made sense to me that if we’re already paying that amount and yet having nothing to show for it but debt, why not put that money into the basement? That would not only give us something to show for the money, but also we would gain that money back in the house.

All improvements to a house make it more valuable. But from a real estate sales perspective, there are certain types of home improvements that you can recover when selling a house and others that you don’t. Kitchen and bathroom remodels are the easiest costs to recover. Adding a new bedroom may or may not be recoverable. I don’t remember if it ranks high up in investments that you can recover.

By recoverable I mean that a future buyer may be willing to pay a premium for your house for certain things, but balk at other types of improvements. From personal experience, I inherited a house in which my parents enclosed a patio to and added a bathroom. When I sold it I was not able to recover the costs of improvements. My father shrug his shoulders and said the improvements were to get more enjoyment from the house. It sounds to me like you want to have your uncle enjoy the portion of the house in which he lives.

yes….and in 75-80% of the cases that’s what happens. It’s different in most peoples minds….The “bill” is only $185, so if I don’t pay the extra this month, it’s ok….then the next month, then the next month. But right now, your bills say – I owe $345 / month, and you know that’s what’s due.

Paying the old dogs off will help improve your credit report

Paying the old dogs off will help improve your credit report. Nothing will show as currently behind/late/delinquent. Even if it currently is late, bringing it up to PAID is improvement. The history will not change, but to the loan issuers, it will show that ALL of your available funds are their for paying the mortgage. And you will likely be approved for installment loan online. I know, it sounds strange, but it is important that you have everything “sparkling clean” on your credit report. Everything up to date, an explanation for all of the bad marks, etc.

We had to verify that a $32 medical bill had been paid by our insurance company in the last couple of days before our mortgage went through. It was stupid!!!! However, the insurance company faxed over a copy of the payment being made and it was removed from our credit report. Problem solved.

Sounds like pretty good advise to me! It is amazing how much impact little changes can make to a credit score.

Without know all of the details, it would seem that by paying off the derogatory accounts, and keeping everything else current, you might see a lift in your score.

If you and your husband are serious about financing a home, your first steps should be 1) Clean up and clear up your credit history, 2) Figure out how much of a monthly payment that you feel you can afford- comfortably, and 3) Get your down payment and closing costs resources together. Must legitimate and reasonable credit offers will come from lenders looking for between 3% and 5% of the purchase price as a down payment.

Just pay extra on the credit cards

At this point and time, my husband and I have decided to just pay extra on the credit cards and maybe do an equity loan further down the road. That way we could use all the money for the basement and not have 1/2 go to credit card debt. We also will set up a savings pland and get a few things along the way. Maybe we’ll start finishing the basement one project/room at a time.

That’s not true that no one ever pays back the principle. I know that “could” happen, but that doesn’t mean it would in every situation. What do you mean “they are not building anything”? This of course is just my opinion, so TIFWIW. I think an interest only loan can provide you some valuable financial relief. The important thing to reflect upon is what you would do with that relief.

You said you intend to make extra payments towards the principle. If you have the discipline to stick to this, the lower interest of an IO is a benefit you might want to take advantage of… If that relief makes you feel like going shopping then that interest only loan is only putting off till tomorrow a debt you’re better off taking care of today.

If you do go with the interest only loan a good budget is going to be important. I do agree that it could certainly be a disaster! I definitely would never get an interest only mortgage.

Why not refinance everything into one loan?

interest only loan doesn’t build on principal, only pays the bank their interest. It’s a rip off situation… There are calculators to see if you should refinance. Try or do a search for something like: refinance calculator.

On second mortgages etc… Because it wouldn’t just be you ‘planned’ to, but your very house would be in danger of loss in you didn’t. That is a big risk, and you had better be 100% certain you are that disciplined. If you have had trouble before, you probably aren’t.

Interest only, what is the benefit exactly? Again, have you been that disciplined before? If not, you’re kidding yourself that you would now. Just like I’m going to buy this pair of pants even though they are too small right now because I really will lose 10 lbs within 2 month… sure, right… lol Has your (and your spouses) history proven you are that disciplined and be extremely honest with yourself? If you’re that confident, why not just get a 10 or 15 year mortgage with required higher payments?

Somethings to consider are:

Do you really need to do these improvements? If the bank is essentially saying you can’t afford them, maybe you should wait? Is this a want that will cost you more than you can afford, or a need you will just have to live with? Also, without spending more, maybe then you could qualify for a different loan or could in 6 months etc…?

Strongly telling myself, I need to have this conversation with myself much more often. : )

Mortgage (home equity loans)

Hi I’m new here.

My husband and I are looking into a home equity loan to pay off our credit card debt/ lower payments/ lower interest rates. We also want to finish our basement with the money or at least finish a few major rooms. (bathroom and bedroom to start). We figured this would be worthwhile to do since as of now, we’re paying $345 in credit card debt/month along with a $108 car loan payment, so totalling about $450/month. We’re being offered an interest only loan with a payment of approximately $185/month. We would pay at least the $345/month on that to pay down the principle. Is this a good idea since we’d be basically be adding equity back into our home for the same price we’re “wasting” on credit card debt? We’re also looking into refinancing our mortgage, but aren’t sure if we should or not. We’re trying to save on interst as well as monthly payments.

Don’t do it! You are taking credit card debt which is unsecured debt and now taking out a home equity loan which makes it a secured debt. Once you do that if you should default in anyway you can loose your home. With unsecured debt if you should default you wouldn’t. For more info on that check out Mary Hunts website Cheapskate Monthly – she talks a lot about that and highly warns against it.

Also watch this video:

Interest only loans are not stupid. They are a financial tool, like any other, that can be used inappropriately. Whether an IO loan is good for you or not would depend on doing a financial analysis and understanding the details of your situation and what you are trying to accomplish.

Sorry, you can’t change my mind on this. Basically you never pay back the principal, and they are not building anything. They are another way that banks have convinced us that debt is good, savings is bad.

If you are concerned about being in debt or have any difficulty handling debt, however, I’d say there is a very good chance interest only loans aren’t for you. I understand what you’re saying, but isn’t that the same as saying that someone wouldn’t pay extra on their credit cards even though they planned to? We’re not going to do it, I just don’t see why it couldn’t work if we planned and budgeted.

I was going to do the loan to help cut the interest rates AND do the basement as well.

I don’t have “savings” to put down on the principal. I’m already making payments of $345 on credit card debt. I was going to keep making that payment amount or similar if we got the equity loan. I wouldn’t be able to afford to keep payiing the $345 on credit cards AND pay for a home equity loan. We were told we might not be able to quailify for a fixed 2nd mortgage because our debt to income ratio is high. The interest only loan option was what was available to us.

Debt Payoff – credit cards, student loans, and car loan

As I’ve stated before, my husband and I are working dilligently to pay down our debt. The question I have is, with some of our credit cards having lower interest rates than our student loan interest rates, does it make sense to pay down the student loans before the credit cards? I would assume a student loan would show up on a credit report as unsecured, however, it wouldn’t be revolving like a credit card would. Any thoughts?

I’ve always been told the best thing to do is pay off your highest interest rate debts more aggressively than the lower interest rate debts. Do banks look at unsecured credit card debt differently than student loans? Does someone have any experience with this? I rolled my college loans and car payment into a second mortgage to deduct the interest payments on my taxes.

My car loan is at 3.9% so I’m not too worried about that. It’s more or less the student loans that range from 7-9% that are bothering me, when we have a couple of credit cards with 1-3% rates. We don’t have a mortgage so rolling them over is not an option. The student loans are currently in grace, but I know they won’t always be, and even in grace the interest accrues.

If you have a credit card that low, can you transfer the loan to it? You would have to take into account, how fast you would really pay it off, and fees for transfering, would they still be less than 7% etc…? There are calculators to figure out how much this type of thing would cost. Do a search for ‘ debt calculator ‘ perhaps? Make sure it is worth it with any fees etc… Also I’m not sure about taxes… if student loans are considered in taxes, and if you even utilize that if so.

I know you rightly don’t want to get out of it, but if something happened where you absolutely couldn’t pay, credit card debt is better to not pay. The student loan HAS to get paid and will be collected upon if not.

I would list all of the debts, their balances, interest rates, etc. and work on paying them smallest to largest.
Pay everything at least the minimum each month, so nothing falls late (fees, charges, etc.)

Then, after you pay off the first debt, use that debts payment to pay additional on the next one down the line and so on.

If you come into extra money, throw it at the debt too, in the same order. So, this month, you may pay just $50 on a debt. Next month, you may sell something, having an extra $40 available to pay on a debt. You might get a refund for returning something to a store, $45 there. Get another $200 in overtime. Put it all on Debt #1. It will be paid off sooner. If that means you send in a payment to it five times in one month, do it. Just get the thing paid off.

BTW – Do not let your student loans fall behind. They are federal debts and will never go away, even if you file bankruptcy. Unless you went through private companies for your student loans. Have you consolidated your student loans yet?

You can still get fees by paying the minimum.


If your interest rate has jumped to the loan shark range and you have had a few late fee charges in the past it can make your balance skyrocket. You will continue to be charged an “over the limit fee” until the balance is no longer over the limit. It doesn’t matter if you that you haven’t actually purchased anything. The over the limit fee will be there every month from other charges even if you have not made any purchases.

My student loan is 100 dollars under the minimum to consolidate and my husband has his undergrad loans consilidated and we’ll consolidate his graduate loans before he graduates. i’m good about making sure i don’t miss payments though and figure things will look a lot better in 6 months.

I’d tell myself to breathe and relax a little

First, I’d tell myself to breathe and relax a little before taking on the decision process. I’m a Catholic Christian, so I’d also suggest praying to God for calm and then for the Holy Spirit’s guidance. Now for some thoughts you may consider.

I’m concerned about this Ford dealer. Did you purchase the van from that dealer as new or used? This forgiving the loan deal on condition that you purchase another vehicle from them sounds different from a trade-in deal. Do you know enough people working at the dealership that tends you toward trusting what they are telling you? Did you check on blue book value including mileage? Suggest being very cautious even though I realize that you need to make a decision and obtain a working vehicle that meets your requirements and that is also reliable. I also just realized that the dealership’s finance company holds the note on your loan so you’re somewhat at the dealer’s mercy. I guess that the Aerostar is not drivable since you need an alternator.

You may be able to purchase a remanufactured alternator on trade for your bad one for a fee less than what you’d pay for a new alternator. Keep in mind that the dealer may want to sell you new parts that may be of better quality than the after-market and rebuilt parts, but they’ll be more expensive when you may only want to get the Aerostar running for now while you complete an organized search for a replacement vehicle in advance of a very long trip of say 200+ miles round trip.

You certainly don’t want to tell the dealer how much cash you have on hand to spend because they might steer you toward a vehicle that the purchase of which may cause you to not get a good deal but spend all of your available cash.

I suggest thinking about negotiating a price for your replacement vehicle first, and then talk about the “trade-in” deal afterward.

Even though you may not be a vehicle expert, you are still a woman and a Mom. My point is that you should still trust your instincts somewhat. If a proposed deal seems to good to be true, it probably is. It’s that woman’s intuition thing. When my mother was alive, I’d swear that she could smell out a bad deal when she heard or saw one. She raised me almost exclusively by herself, and I can’t think of anyone who could’ve done a better job on extremely limited resources. Please don’t disallow your feelings and instincts. What does DH have to say? Certainly you’ve asked for his advice?

As for your requirements, something being able to survive the Autobahn, the Nissans or Toyotas listed may work for you in Germany or Japan depending on their condition and mileage. I don’t have a lot of Chevy experience, so I’m not much help in that regard. If relocating overseas is a likely event for you, perhaps you can research whether or not you can readily find repair mechanics in whatever country you end up moving that will be able to repair the make/model of vehicle you purchase. I would think that Nissan and Toyota repair would be easily found in Japan. I guess that your DH will not have much choice as to where his next Army hitch happens, but if you can predict when it will happen, you can arrange to visit elderly relatives in CA and KY before the move. It might be costly, but you may be able to rent a vehicle to travel to CA and KY. In that case, try to rent 2 different vehicle types in which you have interest so as to try each of them on long trips. Depending upon how long your DH will be stationed overseas, you might consider the tough road of you and the girls staying in the states until DH returns. That of course is a personal decision that you may factor in.

It seems to me that you may want to list, organize, and prioritize all of your choices, and then after you have set your priorities, you can start from the most important and most urgent to you and then work down to the least important and least urgent. Your short-term goal may be go just do what you can to keep the Aerostar running for now, and then take on the longer term question of what vehicle you purchase to best meet your requirements.

You may want to revisit your factors below because it is unlikely that you’ll be able to get everything you want.

So I have a lot of factors to look at:

– my family of 4 (2 girls 8-6 that do not want to be touching each other in the car)
– we have and will continue to take “road trips” to California and Kentucky starting from Texas each year (elderly family members to visit before its too late)
– descent gas mileage
– the possibility of relocating to Germany or Japan with DH’s Army career (something that can survive the Autobahn)

I need a reliable vehicle that can handle all of this.
Decent gas mileage with hauling capability including room for your 2 girls in the back seat without touching each other may not be easy to get. Perhaps DH can talk with an Army buddy who’s been in Germany or Japan to get the gouge on the best way to go for a vehicle choice there.

I’ll pray for God to provide you with the prudence, patience, and right judgment to do what you decide to do.

Gotta go. God bless, and hang in there. I’m serious when I suggest praying to God about it. I don’t know your religion of choice, but God is always there for you. You just need to ask Him for help.

I’ll think about this topic further, and advise if I think of anything else that I believe would be of value to share.