My wife and I are Realtors. Enough said?
Our income has diminished by 80% over the past three years, thus we have incurred credit card debts in excess of $105,000. (7 different cards)
I am 73 years old and my wife is is 65. We have a small income from pension and SS in the amount of $3,600. per month.
We have both suffered illnesses and an injury that has hindered our earning potential in addition to the very slow real estate market in our area. (I know. We are not alone.)
We have contacted two Debt Relief companies, CreditAnswers, Plano, TX and Impact Debt Relief of San Diego, CA.
Do you know anything about these companies?
We are not at all pleased with their concept of debt solution.
ie: Don’t pay. Wait for collection agencies to harass you and then they, the company, will negotiate, for a fee that is paid in advance, while we stop paying to the banks and try to save enough to satisfy one creditor at a time.
Is that the best plan out there?
We have mortgaged our home and find that with the down turn in the economy and our heavy credit card debt, refinancing is probably not an option.
We are presently current with all of our credit cards but we are nearly out of reserves.
Can you help?
We are in need good reliable advice!
The absolute last solution that sounds right for you is debt settlement. If you don’t have any major assets, based on your debt and income bankruptcy is the most logical solution. Click here to find a local bankruptcy attorney you like. Go talk to them.
You are right to worry about the plan both companies laid out for you. It is totally unrealistic and would subject you to years of collection activity, probable lawsuits and stress beyond belief. With your current income situation there is no reasonable expectation you’ve be able to get by and save enough money to actually settle the debt. You’d wind up paying the debt settlement companies thousands and thousands of dollars and probably never get out of debt.
Before you are totally out of reserves you MUST take definitive action and go talk to a local bankruptcy attorney, please!
I did a review of Impact Debt Relief and was not impressed, at all. I’ll do the one on CreditAnswers tomorrow. But I can tell you, I’m not impressed either. If you really think debt settlement is a path you want to explore, go talk to Damon Day and get his independent opinion.