I will have 5 credit card charge offs and it will ruin my credit score for 12 years! I can’t decide if I should let Credit Relief Today handle my debt or not…
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Sun, Jan 3, 2010
January 3rd, 2010 at 8:58 pm
RUN AWAY!! Debt settlement companies are not a good idea. You’ve already figured out that they will trash your credit. But are you aware that many of these debt settlement companys must take your monthly payment and never even settle any of your debts?
How about that most credit card companies refuse to play with debt settlement companies and just immediately sue you. More damage to your credit and you’ll owe the credit card debt plus all the legal fees.
One more thing. In the off chance that this debt settlement company actually settles any of your debts, it will show on your credit report as a charge off/settled and the creditor will send you a 1099 for the forgiven portion of the debt. You will have to include that on your income tax return.
If you are having trouble keeping up with your $70K, contact a NFCC credit counseling service: http://www.nfcc.org/. These are legit,non-profit companies offering debt management programs for a nominal fee. They negotiate lower interest and payments so you can pay off you debt. When you complete the program, you will have decent credit.
They also offer budgeting help. Good budgeting and learning to live within your means will keep you from running up $70K in debt.
January 3rd, 2010 at 8:58 pm
It WILL NOT ruin your credit score if you do it correctly…. Settling should be your last option. And if you do get to the settlement point write a restrictive endorsement on you check to remove the derogatory item.
Let me ask you this …… if someone came to your door in the next 15min with a check for $56,000.00 and told you your credit was going to be ruined for 90 days…. would u do it?
First of all the creditors will settle for 20 cents on the dollar or less. The debt settlement companies tell you will reduce it by half because they take the 30 cents on the dollar or 30%. THATS HOW THEY MAKE THEIR MONEY !!! They usually take the first two to five payments up front! Why would you go to a settlement company when settling should be your last option.
January 3rd, 2010 at 8:58 pm
Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one – credit-report-free.totalh.com
January 3rd, 2010 at 8:58 pm
I am Mrs Mary Kent,currently living in New jersey city,USA.I am a widow at the moment with three kids and i was stuck in a financial situation by may 2009 and i needed to refinance and pay my bills.I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit.But as God would have it,i was introduced to a man of God a private loan lender by name Mr Mikel Locke who gave me a loan of $50,000USD and today am a business owner and my kids are doing well at the moment.So dear,if you must contact any firm with reference to securing a loan with low interest rate of 3% and better repayment plans and schedule,please contact Mr Mikel Locke.He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him more.You can contact him through his email at mikellockelendingfirm@gmail.com