“Dear Steve,

I have $83K in credit card debt and I am current with payments and have not had a late payment in many years. Regardless of my payment history, my card issuers have all significantly raised the interest rates which is making it difficult to make my payment.

I have been communicating with Jesse Neisen (debtgotoguy.com) regarding entering a debt settlement program, but I have not yet committed. I hesitant to go this route, but the debt management companies have been unable to significantly lower my average rate to make my situation any better than I already have.

I am virtually moments away from submitting my paperwork for the settlement program, but scared witless. I also went through a bankruptcy in 1999 and have been so proud to keep my debts in check for the past 20 years. Unfortunately, my husband expe rienced a $22k/year drop in pay in July 2006, and this is the mitigating circumstance that has led us to this point.

In your opinion, should I go the settement route? My credit rating has dropped from 720 to 615 in the last 2 years. I’ve already closed several card accounts to try and keep my rates low, but doing this is screwing up my credit rating as well. HELP! I’m so afraid of doing something that will make me worse off than I already am!

Mary”

The Answer:

Dear Mary,

I don’t know Jesse except for visiting his website and seeing him on Twitter @DebtGoToGuy.

From what you have said and a look at the site it does appear he is focused towards debt settlement.

In my humble opinion only people that have cash on hand and are fully aware of the tax and credit implications of debt settlement are good candidates to embark on that route.

If you would have to enroll in a debt settlement program and then save money each month over years before debts can be settled that path is problematic at best.

But I think Jesse and others would agree with me that the only way to make a fully informed decision about what is right for you is for you not to latch on to any one solution before researching all of them. You’ve already checked out credit counseling, good for you.

If you have not met with a bankruptcy attorney, you should. You don’t need to meet with them to go bankrupt, but to understand what bankruptcy would offer and mean for you in your situation. Most bankruptcy attorneys offer a free consultation so it’s not going to cost you anything.

Just find a local bankruptcy attorney you like, make an appointment, and go in and meet face-to-face. Do that before you sign on with any program from anybody.

Once you meet with the bankruptcy attorney you can then make an educated decision about what is best for you based on the facts and multiple options. Right now it sounds like you are simply trying to decide if the debtgotoguy.com route is the best for you but that’s a bit like saying is a car tall, compared to what?

I know you went through bankruptcy before but times have changed. Also, I want you to avoid making this decision based on fear, but on knowledge.

While it sounds like you want to avoid bankruptcy for fear of how it will impact your credit, your current situation is already lowering your score and debt settlement will also.

It’s time for an informed and organized plan of action and not a knee-jerk reactionary solution. Do you agree?

So does my suggestion make sense to you? Does it sound like a prudent course to follow before you leap at any particular solution?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

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Read the full article at GetOutOfDebt.org, click here: So What About Jesse Neisen and DebtGoToGuy.com, Should I Go With Him? – Mary