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I Went with Credit Answers and Now Owe More Than My Original Debt With Chase. – John

“Dear Steve,

Hello Steve, I hope you can help me with current situation.

- Had $15K debt on Chase card after the divorce. And with income cut in half, I was having difficulty making payments. But I am still paying for two other credit cards ($7,500)

- Sought help with Credit Answers in 2009, hoping they could negotiate with Chase down to 50% or something as they advertised.

- Chase turned my account to a collection law firm in 8-2010. Received one letter from them, and that’s it.

- I could not save funds on a monthly basis as they coached, so I canceled the 401K (lots of penalty + pay tax on it next year): $10,000…. hoping that would be enough to clear with Chase. (that is all I have)

- Credit Answers informs me that I could make two $7,500 payments (3 months apart) OR $5K down and $250/mo. for 47 months… (may be longer)

- Meantime, I paid Credit Answers over $3K in fees and downpay.

Just what negotiation have I received? I think I could have done it and get a similar deal (if not better). So, now I’m thinking about asking for refund… and if not, file a complaint against BBB.

I finally decided

- I am not happy with the result, so can I ask for a refund on $3K?

- Once I cancel Credit Answers, can I find a person like you or another company to resolve the matter? (even by a little bit?)

- Or is it a good idea to call that collection firm before/after canceling Credit Answers?

- Bottom line is… is there a way to settle my debt w/ Chase better?

Your help is dearly appreciated. Thank you in advance.

John”

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The Answer

Dear John,

I’m so sorry to hear about your experience with Credit Answers. That seems like hardly a deal with Chase. After you pay all your penalties with the 401(k) and fees to Credit Answers you are paying way more than the original debt. It looks like your debt was inflated rather than settled.

Let’s roll up our sleeves and take care of this properly.

First thing I would do is go hard after a refund from Credit Answers. I would suggest you become very familiar with my refund process. Read the process over and follow it to the letter. Step-by-step you need to chip away and fight for your refund.

The next thing I’m going to do for you is connect you with a member of my angel network of debt relief companies and I’m going to get you so free help to settle that Chase debt. If you want to take me up on that offer just respond in the comments below.

Let’s kick some ass, take some names and get this mess cleaned up.

Big Hug!

I Went with Credit Answers and Now Owe More Than My Original Debt With Chase.   John
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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Went with Credit Answers and Now Owe More Than My Original Debt With Chase. - John by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Johnaes

    Thank you so much for your suggestions.  Credit Answer called me yesterday, so I pretty much told them that I’m not satisfied with their service and wanted refunt.  They took it well, and told me to do what I got to do.  Will send them an email of what my exact actions will be and see how they react.

    Meanwhile, I did refuse the final offer from CreditAnswers/Chase (owed $16K but asked me to pay $21K).

    Regarding your “Angel Network”, will cost me anything? (down payment, monthly fee, etc.)
    And now that my case is with the law firm, what is my chance of getting it reduced?  Credit Answer told me it will be very difficult to deal with them, and these firms do settle at higher amount compared to just dealing with Chase.  Please let me know.  Thank you again.

  • Johnaes

    Thank you so much for your suggestions.  Credit Answer called me yesterday, so I pretty much told them that I’m not satisfied with their service and wanted refunt.  They took it well, and told me to do what I got to do.  Will send them an email of what my exact actions will be and see how they react.

    Meanwhile, I did refuse the final offer from CreditAnswers/Chase (owed $16K but asked me to pay $21K).

    Regarding your “Angel Network”, will cost me anything? (down payment, monthly fee, etc.)
    And now that my case is with the law firm, what is my chance of getting it reduced?  Credit Answer told me it will be very difficult to deal with them, and these firms do settle at higher amount compared to just dealing with Chase.  Please let me know.  Thank you again.

    • http://GetOutOfDebt.org Steve Rhode

      Sorry for the delay in responding.

      The chances of getting it reduced are not great but it’s worth a shot. Members of my Angel Network have agreed to provide help for little to no cost.

      If you want to go that route I’ll need your permission to release your email address so someone can contact you.

      Steve

      • Johnaes

        Thank you, Steve.  I will certainly get on Credit Answer for refund.

        As for Chase account, should I contact them directly and explain what had happen (Credit Answers) + personal hardship, and ask for discount/help?

        Or would you suggest me talking to your Angel Network first?  Please let me know.  Thank you always.

      • Johnaes

        Thank you, Steve.  I will certainly get on Credit Answer for refund.

        As for Chase account, should I contact them directly and explain what had happen (Credit Answers) + personal hardship, and ask for discount/help?

        Or would you suggest me talking to your Angel Network first?  Please let me know.  Thank you always.

      • Johnaes

        Thank you, Steve.  I will certainly get on Credit Answer for refund.

        As for Chase account, should I contact them directly and explain what had happen (Credit Answers) + personal hardship, and ask for discount/help?

        Or would you suggest me talking to your Angel Network first?  Please let me know.  Thank you always.

      • http://GetOutOfDebt.org Steve Rhode

        Before you do anything let me connect you with someone from my Angel Network so you can work out a plan of action. I just need your permission to release your email address to them.

      • Johnaes

        Yes, you have my permission.  Thank you.

      • http://GetOutOfDebt.org Steve Rhode

        John,

        Watch for an email from Kevin to help you out. Let me know how it goes.

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