I have a 21,200.69creditcard debt in total from 9 different creditcards. I need you advice now. jUst recently, I enrolled myself to a debt settlement program[pfs1.net].
They told me they can settled it by 50% for 36monthsof 421.23 a month fees included period. And they told me my first two payments is the insertion and then after that,their gonna start the negotiation to my creditors.
Steve, Is this some kind of real? can you tell me now if this is not a scam? before I will start my first payment at the end of this month? I am very afraid now coz, I dont have a job and I am depending only of my husbands paycheck which is I fell bad for him..sometimes I will just cry and I dont know what to do at all..should I need to file a personal bankruptcy? do I qualify? I can’t pay this anymore and I am still looking for a job..please help me steve..please…
First thing you need to do is cancel your agreement with Preferred Financial Services. You may even want to consider changing your checking account number to make sure they don’t draft your account accidentally.
The big problem is your lack of employment. By not being employed there is little reasonable expectation you would be able to make large enough payments to begin to attempt to settle some of these debts soon. On top of that the company appears to be taking your first couple of months payments and then they may be taking a percentage of subsequent payments before they ever settle a single debt. As of October 27, 2010 that is illegal. As of September 27, 2010 it is illegal for a debt settlement company to tell you they can settle your debt for a specific percentage or within a specific period of time unless they can support those claims with a good faith estimate. You can read all about that, here.
The next minute after you cancel your agreement with Preferred Financial Services you need to find a local bankruptcy attorney to talk to. I would estimate that Preferred Financial Services was going to charge you about $3,500 with extra fees for their services but bankruptcy will run you about $1,500 and eliminate your debt in months. It will also prevent collection and stop you from being sued. Debt settlement won’t.
The day after you talk to the bankruptcy attorney and decide to move ahead with the protection bankruptcy offers you I bet you will feel like a great weight has been lifted from your shoulders. Based on the cost and the benefit, my opinion is that bankruptcy is the smarter move for you.
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.