“Dear Steve,

Have a total of $74,000 debt to 5 different credit companies. My mortgage payments went double because of variable rate. I am current with my payments. Cannot pay my credit bills anymore. I want to settle with them. I can borrow around $ 22,000 from close relatives and selling some stuff. My questions are first should I use a settlement company or do it myself. Second, every settlement company I research there are bad and good reviews about them. Which one should I choose and how?

My questions are first should I use a settlement company or do it myself. Second, every settlement company I research there are bad and good reviews about them. Which one should I choose and how?

Emad”

The Answer

Dear Emad,

Only being able to afford an overall settlement of 29% of your debt is not a realistic expectation. Also keep in mind that settling will result in bad credit, potentially being sued, and a large bill due the IRS for forgiven debt.

If what you are trying to do is keep your house but repay your debt based on what you can afford that bankruptcy might be your best bet. Click here to find a local bankruptcy attorney and go discuss it with them.

If you want to discuss if debt settlement is right for you, talk to Damon Day. He’s a straight shooter and can honestly answer questions for you about debt settlement.

Or, if you don’t want to talk to Damon Day and there is a particular debt settlement company you are thinking of using, let me know and I’d be happy to research and review them for you.

Big Hug!

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