Reader Questions

I’m on Welfare. Debt Settlement Companies Tell Me They Can Get Rid of My Debt. – Kevin

I am medically unable to work and I collect a small amount from welfare (not nearly enough to pay all my bills) until my disability benefits are approved. I need over $400 monthly to pay my bills and I’m given less than half that to pay them. I have about $8500 in debt split over 4 credit cards and 1 loan. I have talked to several debt settlement companies and I have been told I can settle my debt for a reasonable monthly payment that I can handle.

Several lawyers told me I am Judgment Proof and I should follow that route. After reading a lot about Judgment Proof, although I am eligible, I don’t know if that’s what I want to do. I’ve done a lot of thinking and research on what my options are and just can’t decide what to do. I have to do something about my deteriorating financial situation before it’s too late.

With everything you know and from what I’ve told you, what do you suggest?

Kevin




This reader question was submitted for site members to answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question. Post your response in the comments section below.

If you have a credit or debt question you’d like to ask just use the online form.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


READ  I am Disabled and Worried About Paying My Credit Debt. - Patricia



About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Hello Kevin,
    There is no such thing as monthly payments with debt settlement since none of your creditors agree to it. I say forget the settlement company for now. The idiotic letters that most of them send increase the likelihood you will be sued anyway. Take the 200 a month and stick it in your bank account and see how much you can actually save. If you are successfully able to raise the funds then you can negotiate with your creditors at that time, or hire someone to do it if you wish. Until your disability kicks in, it is more important to keep your cash in the bank. The problem with getting financial advice from debt settlement sales people is that they tend to only recommend that you sign up in their program, even if it doesn’t make a lot of sense. They never seem to realize or care that sometimes there are more important things than settling debt.

  • Hello Kevin,
    There is no such thing as monthly payments with debt settlement since none of your creditors agree to it. I say forget the settlement company for now. The idiotic letters that most of them send increase the likelihood you will be sued anyway. Take the 200 a month and stick it in your bank account and see how much you can actually save. If you are successfully able to raise the funds then you can negotiate with your creditors at that time, or hire someone to do it if you wish. Until your disability kicks in, it is more important to keep your cash in the bank. The problem with getting financial advice from debt settlement sales people is that they tend to only recommend that you sign up in their program, even if it doesn’t make a lot of sense. They never seem to realize or care that sometimes there are more important things than settling debt.

Leave a Comment

Scroll to Top