Hello, I stumbled across your website just in time. I am currently in the process of trying to find the best solution to my cc debt problems. Me and myhusband have approximately $54,000.00 in cc debt. We are current, credit is decent (just too much of it). For years now we just make our payments and are not getting anywhere. We have a son freshman in high school and a daughter a senior in high school. I have called and spoken with consumer credit counseling agency recently as well as a debt settlement company. I am confused, scared, and not really wanting to file bankruptcy. In reading your articles, blog the companies I am talking to seem unable to help us.
Is it wise to consider the debt settlement company Financial Solutions Consumer Center who is asking for $500.00 retainer fee up front, 10% of debt to be paid in 22 mos while my program is 40 mos ? Or continue speaking with the Consumer credit counseling company Momentive? Or look for alternative soltuion
You may not know that as of October 27, 2010 it will be illegal for any debt settlement company to charge you a fee prior to actually settling the debt. It sounds like the debt settlement company you have contacted is still charging these types of advance fees. In that case I would suggest looking for a debt settlement company that will not charge an advance fee or wait until after October 27, 2010 to enroll.
The decision to go with a debt settlement company, credit counseling, or bankruptcy really depends on your situation and the goal you would like to achieve. It might be helpful to put each of these solutions into context based on the success and failure history of each strategy. You should read The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.
I am concerned that you are looking at debt settlement as a way to cut your payment and get out of debt. There are some very serious consequences with that approach. If you plan to make payments over years you should expect to be remain in aggressive collection, prepare to be sued by creditors, you may get a judgment against you and even get your wages garnished. It will also hurt your credit and their may be some serious tax consequences as well.
Rather than make a judgment about bankruptcy based on emotion, I’d rather see you investigate bankruptcy and make a decision based on facts. You can click here to find a local bankruptcy attorney and talk to them.
However, based about your level of uncertainty, your situation, and your concern to make the right decision I would suggest that you contact my friend and fellow debt coach
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.