I have about $60,000 of credit card debt and have contacted Credit Answers and Prestige about their work out programs. i have also contacted and communicated with Money Management International.
As you know the former negotiate with the creditors, and claim to work out a program where i would pay off somewhere between 25% and 50% of the debt, along with fees to them in the area of 12% to 15%, i have read many negative comments about these folks where people were more than dissatisfied and in come cases got no results and no return communication. with Money Management International, they get my interest rate reduced, and i would be clear of debt within about 4 years. they seem and sound legitimate.
first question, do you have a point of view regarding the above? second question, do you have any input you could share about Money Managenemt International? Third question, why would my creditors not negotiate a workout directly with me, and thus I avoid the 3rd party involvement.
Thank you Steve, and i look forward to your response.
I took a quick look at CreditAnswers and Prestige Financial Solutions and was not thrilled by what I saw. The first thing on CreditAnswers that caught my eye was the TASC disclaimer link at the bottom of the site that talks about all the bad stuff that can happen to you in a debt settlement plan was grayed out. I also found their comments against bankruptcy to be completely misleading.
Consumers may now be required to file Chapter 13, which requires you to pay back a portion of your debt under the supervision of the court. This process may last for years. – Source
Nice statement, and how long does debt settlement take, yep, years.
And with all the marketing information on the site I only found one tiny little mention of what happens if you go into a debt settlement program and don’t pay your creditors.
If you fail to make payment to your creditors, they may take legal action against you. – Source
When I get more time I’ll have to come back and do a full blown review on this site. Not happy with it at all. And you know what is bad, when the marketing company CreditAnswers hires, sues them. CreditAnswers lawsuit by Marketing Architects, Inc.
Now, let’s look at Prestige Financial Solutions for a moment. At first glance their site is less troublesome but they did a horrible job of glossing over the fact you can be sued in the debt settlement program.
Creditor lawsuits are NOT COMMON they do happen. – Source
Just remember that a credit counseling group, like MMI, does not actually negotiate with your creditors and has no control over the terms a creditor offers. You should read The Truth About The Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.
Your creditors will speak directly with you but reduced terms are really only available to people that have demonstrated they have a hardship and once you do that it impacts your credit. Even a credit counseling program can impact your credit. When you go into a credit counseling program the cards included are closed and that severs your history with those cards.