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Should We Really Be Considering Debt Settlement with Consumer Attorneys of America? – Michael

My wife is considering the pursuit of a debt settlement for two credit cards of which total around 28K. The company titled, Consumer Attorneys of America, contacted us and recommended that we not pay our bill for the cards. We have never missed a payment, but are unfortunately facing that possibility in the very near future.

We were advised that we should open a new checking account that was not related to the credit cards. We did that. We have not, however, signed anything with Consumer Attorneys of America and are getting cold feet about letting our cards go without payment. My wife accumulated the debt without my knowledge and the cards are in only her name. She only works part-time and doesn’t make anywhere near the money needed to pay the cards off. Any advice that you could give would be greatly appreciated.

Should we really be considering debt settlement with Consumer Attorneys of America? We can’t afford the $600 per month that we have been paying for 3 years due to a 15% reduction in my income over the last 3 years. Is there any other alternative that would better suit our situation?

Thanks

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Should We Really Be Considering Debt Settlement with Consumer Attorneys of America? - Michael by

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  • Rkizl

     THERE IS NOTHING THEY CAN DO THAT YOU CANT DO YOUR SELF …CONTINUE TO PAY THE BILLS EVEN IF THEY ARE GOOD FAITH PAYMENTS OF 10.00 A MONTH IT SHOWS INTENT SETTLEMENTS ARE ONLY AVAILABLE TO THOSE ACCOUNTS HAVE RECEIVED NO PAYMENT IN 120DAYS

  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Michael,

    badkitty makes a good point, but is light on the details.

    You can contact your creditors to learn what kind of reduced payment plans they can make available to you. However, if you are not behind in at least one payment to a creditor, you will likely hit a brick wall with payment reduction plans.

    If you cannot meet payments as they are with your interest rates today and would like to explore your options with bank sponsored reduced payment plans on your way to possible settlements, read this article on this site: http://getoutofdebt.org/27478/bank-sponsored-direct-to-consumer-hardship-plans-for-credit-card-debts

    Also, if you would like to get a general idea of what
    settlement would look like given your creditors, balances and workable
    timelines, check out the debt relief calculator found on this very site: http://getoutofdebt.org/resour

    Enter your accounts then look at the settlement summary.

    If settlement is an option you would like to pursue, I recommend doing as much if not all the settlement work on your own. If you or your wife are unable to get a deal with one or more creditors on your own, then look to a settlement service provider that charges fees based on performance to assist with remaining accounts.

    Settling directly with creditors and collectors on your own is not difficult. It is helpful to know what to do when. It is also a huge benefit to know what is likely to occur in the settlement process before it does. I would recommend you check out the DIY education and coaching available through http://www.zipdebt.com if you get serious about the settlement option.

    badkitty failed to point out that all debt relief options have an impact on the credit report and how soon one can access credit. Its just part of the deal when one cannot meet the established terms of a credit/loan arrangement.

    Settlement works well, but it is not for everyone. If you have additional questions about settlement or bank sponsored hardship plans, post them in comment replies on this page.
    Best of success in your efforts!

    • Oobadkittyoo26

      It’s always better to work things out on your own with creditors. That’s been my experience. I have worked in the settlement and consolidation field for ten years.

    • Oobadkittyoo26

      It’s always better to work things out on your own with creditors. That’s been my experience. I have worked in the settlement and consolidation field for ten years.

  • Oobadkittyoo26

    Do not go with this company. They’re formerly The Consumer Law Group. They changed their name to Consumer Attorneys because they’re being investigated by the Florida Attorney Gen and NC Attorney Gen as well…. Same owners just now with a different name. Debt settlement in general will have a very negative effect on your credit report. Consumer Attorneys or The Consumer law grp will take payments on a monthly basis, let the funds sit in an account so they can accumulate enough funds for settlement. Meanwhile you’re charged late fees and your balances go up because you’ve not made payments. Do yourself a favor…. Call your creditors ask if they have a hardship department and work out a payment arrangement with them yourself.

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