Comments on: i need to settle my credit card debt? http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm Mon, 06 Feb 2012 00:00:45 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Jill S http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm/comment-page-1#comment-2877 Jill S Tue, 13 Oct 2009 15:09:53 +0000 http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm#comment-2877 I know of a specific company which is good to use, but let me just warn you on a couple of things (from personal experience). If you use a debt settlement company, you will no longer have access to any credit cards. They will not tell you about this until its too late. Also, you must must must check out the company you will use, (if you go through with this). I have heard of too many horror stories about these debt settlement companies that take your money as agreed upon, but they don't pay your credit card companies as they agreed to. This will put you in a bigger bind Why don't you think about doing a bankruptcy. You can get a totally free consulatation from a local lawyer who specialize in bk. It will cost you about $1200, and you will be able to keep your own money. The government gave us this option for people like us who need help. If you have any further questions, feel free to send me an email at hansjill228@optonline.net. Good luck with whatever you decide on. I know of a specific company which is good to use, but let me just warn you on a couple of things (from personal experience). If you use a debt settlement company, you will no longer have access to any credit cards. They will not tell you about this until its too late. Also, you must must must check out the company you will use, (if you go through with this). I have heard of too many horror stories about these debt settlement companies that take your money as agreed upon, but they don’t pay your credit card companies as they agreed to. This will put you in a bigger bind
Why don’t you think about doing a bankruptcy. You can get a totally free consulatation from a local lawyer who specialize in bk. It will cost you about $1200, and you will be able to keep your own money. The government gave us this option for people like us who need help. If you have any further questions, feel free to send me an email at hansjill228@optonline.net.
Good luck with whatever you decide on.

]]> By: Steve D http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm/comment-page-1#comment-2878 Steve D Tue, 13 Oct 2009 15:09:53 +0000 http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm#comment-2878 Before you do anything, read this page from the Federal Trade Commission very carefully. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm Note that both state's Attorney General offices and the FTC have debt negotiation companies under scrutiny for the promises they make and their business practices. Also note that debt negotiation can screw up your credit report and score just as bad as bankruptcy. Before you do anything, read this page from the Federal Trade Commission very carefully.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm

Note that both state’s Attorney General offices and the FTC have debt negotiation companies under scrutiny for the promises they make and their business practices. Also note that debt negotiation can screw up your credit report and score just as bad as bankruptcy.

]]> By: CatDad http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm/comment-page-1#comment-2879 CatDad Tue, 13 Oct 2009 15:09:53 +0000 http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm#comment-2879 If you've already defaulted on your cards you don't need to hire a debt settlement firm. You can negotiate directly with your creditors for settlements yourself....like 25-50%. Debt settlement firms take people who have not yet defaulted and have them stop paying on their cards so they default. This has already happened in your case and you'd just be wasting your money hiring such a company. No debt settlement firm can force your creditors to accept settlements. People get sued all the time from failed attempts with debt settlement companies. - Bankruptcy stays on your credit report for 10 years....not 15 years - Defaulted/charged-off credit card debt stays on your credit report more than just a few years...it stays for 7 years and your credit will be greatly damaged, almost as if you had filed bankruptcy - Even if you get all this debt settled at 50%, settled/Forgiven debt is treated like earned income with the IRS...any debt that is forgiven must be added to your next year's income and you'll have to pay whatever additional taxes...so that's like $30,000 in income that you'll have to report next year....This in of itself could create a tax bill of $ 7,000 for you. Don't rule out Chapter 7...it may be the best thing for you. Strangely enough, your credit rating can bounce back faster if you file for Chapter 7 rather than having multiple charge-off/settlements. Don't let anyone smear you for making this decision if you have to....The US financial and banking sector is amoral and predatory....Do what's best for you. FYI: You can only file for Chapter 7 once every eight years... Lastly, with nine different creditors, I can almost guarantee you that at least one is going to serve you a summons and take you to court over this debt. From what you've written, Chapter 7 might be the way to go. If you’ve already defaulted on your cards you don’t need to hire a debt settlement firm. You can negotiate directly with your creditors for settlements yourself….like 25-50%. Debt settlement firms take people who have not yet defaulted and have them stop paying on their cards so they default. This has already happened in your case and you’d just be wasting your money hiring such a company. No debt settlement firm can force your creditors to accept settlements. People get sued all the time from failed attempts with debt settlement companies.

- Bankruptcy stays on your credit report for 10 years….not 15 years
- Defaulted/charged-off credit card debt stays on your credit report more than just a few years…it stays for 7 years and your credit will be greatly damaged, almost as if you had filed bankruptcy
- Even if you get all this debt settled at 50%, settled/Forgiven debt is treated like earned income with the IRS…any debt that is forgiven must be added to your next year’s income and you’ll have to pay whatever additional taxes…so that’s like $30,000 in income that you’ll have to report next year….This in of itself could create a tax bill of $ 7,000 for you.

Don’t rule out Chapter 7…it may be the best thing for you. Strangely enough, your credit rating can bounce back faster if you file for Chapter 7 rather than having multiple charge-off/settlements. Don’t let anyone smear you for making this decision if you have to….The US financial and banking sector is amoral and predatory….Do what’s best for you. FYI: You can only file for Chapter 7 once every eight years…

Lastly, with nine different creditors, I can almost guarantee you that at least one is going to serve you a summons and take you to court over this debt. From what you’ve written, Chapter 7 might be the way to go.

]]> By: Help Is Here! http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm/comment-page-1#comment-2880 Help Is Here! Tue, 13 Oct 2009 15:09:53 +0000 http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm#comment-2880 There is no rule of thumb that the 9 credit card companies you owe money to have to settle or accept any terms a credit repair company puts out there. You could end up worse off! If I were you, I wouldn't bother with a company that is going to promise you the moon, take your money and then leave you on the side of the highway while you get sued. 60k? Unemployed? You are the prime candidate for bankruptcy. You will not be stigmatized for 10 or 15 years. You can start building your credit again in as soon as 5 years after your bankruptcy is discharged. If you want to pay it off, use the services of a non profit credit counseling service. They will talk to your creditors, set up a payment plan and budget for you to get this debt paid off in a decent amount of time. Please don't use a credit repair/consolidation company. They will leave you in a bigger mess than you are now. There is no rule of thumb that the 9 credit card companies you owe money to have to settle or accept any terms a credit repair company puts out there. You could end up worse off!

If I were you, I wouldn’t bother with a company that is going to promise you the moon, take your money and then leave you on the side of the highway while you get sued.

60k? Unemployed? You are the prime candidate for bankruptcy.

You will not be stigmatized for 10 or 15 years. You can start building your credit again in as soon as 5 years after your bankruptcy is discharged.

If you want to pay it off, use the services of a non profit credit counseling service. They will talk to your creditors, set up a payment plan and budget for you to get this debt paid off in a decent amount of time.

Please don’t use a credit repair/consolidation company. They will leave you in a bigger mess than you are now.

]]> By: mtwaites http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm/comment-page-1#comment-2881 mtwaites Tue, 13 Oct 2009 15:09:53 +0000 http://howtogobankrupt.org/i-need-to-settle-my-credit-card-debt.htm#comment-2881 http://www.consolidatedcredit.org/contact_us.aspx http://www.consumercredit.com/ http://www.nodebttoday.com/ http://www.creditinfocenter.com/debt/DebtConsolCompanies.shtml These are some organizations that may be able to help you out with your problem. http://www.consolidatedcredit.org/contact_us.aspx
http://www.consumercredit.com/
http://www.nodebttoday.com/
http://www.creditinfocenter.com/debt/DebtConsolCompanies.shtml

These are some organizations that may be able to help you out with your problem.

]]>