I have about $28K in debt – 3 cards Discover $12.5K (18.9%), ATT 4.5K (19.9%), USBank 10.5K (7.4%). I am unemployed for the last 18 months, have depleted my savings paying credit card minimums and basic minimum lifestyle. I cannot afford to pay monthly minimums, and would like a Debt Settlement.
I have contacted a Debt Settlemeng company – Covenant Debt out of Irvine California – and they have sent me paperwork. They say that I have to pay $700 upfront for lawyer fees and will take 33% of the savings when settled. I am not sure about this company and what I picked up from the Internet is not favorable. I could use youyr guidance in going about it the right way, particularly if I can self-help or use a good attorney at far less cost and far greater savings.
I did get an interest rate reductins from US Savings st 7.4% from 13% for 12 months upto June 2011.
I am married, have our own house almost paid off, have a daughter in university (fortunately she is getting financial aid). Two years from now my son will be entering university and I have no idea how I am going to pay for his education.
Covenant guaranttes no results but estimates that they can save me 50%, but that may be just a selling ploy as I do not have any references which I asked them but they use one excuse or another (privacy etc. to not give me references).
My point is if I can get your guidance to locate a good attorney who can do the debt settlement for much less and much greater savings (reduction), more quickly (Covenant wants to do it in 3 years), or if I can do it thru self-help with your guidance , or as last resort with a reutable, honest (?) debt settlement company I’d like to take your suggestion and follow thru.
My husband is also not employed, and we have been living off our savings. His name is not on the cards, and he has a reasonably good credit score. So whatever I do I do not want to his credit to take a hit. It is likely that he is going to come by some funds n about 2 months nd we have talked about using the money to make a lump payment to all 3 credit card companies and settle permamnently. We estimate the amount would be between $7-8K. I am new to this situation, do not know how to go about debt settlement or negotiating one.
Would you help in negotiating the settlement with all 3 card companies and retire all teh debt permamnently? Wold much appreciate a prompt answer as I am already 2 months behind in paymenst and getting badgered by their collection people.
I have included a donation for your cause. I have read quite a bit about your background and am impressed by what you have set out to do. Hoepfully, in the not distant future I’ll be in a better financial situation to help your cause more substantially.
Thanks in advance for the guidance to come.
Since you’ve already trudged through your savings and you and your husband are unemployed, debt settlement does not seem appropriate for your situation. I suggest you read The Honest and Unvarnished Truth About How to Get Out of Debt.
It would be far more appropriate for you to find a local bankruptcy attorney and go talk to them than using your last bit of uncertain income to “hopefully” deal with some of the debt. Let’s take care of it once and for all and focus on a better future.
You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact
Please post your responses and follow-up messages to me on this in the comments section below.