I had some smaller debt that was not a problem but some medical bills for knee surgery needed to be paid and that amount has pushed me to the limit in many ways. I am know looking at a way to make the debt more manageable. I can pay the monthly payments plus other expenses but I am no longer saving and that is an issue. I have been speaking with Nationwide Debt Direct.
Is Nationwide Debt Direct a reputable company or is it a scam operation? I am also concerned about enrolling in the program since they only pay off the loan once I have deposited the amount to settle the loan is int he trust account. So that means a large debt which is with one creditor could take one year to save to amount needed to pay it off. Won’t that account go into collections before it can be settled and how long before I get sued for the amount? Also can they sue for the full debt amount even if settlement is proposed?
FYI I owe a total of $30,000 on the CC’s one holding $18,000, one $8k and one $4k … $22000 is medical expense.
In short is Nationwide Direct Debt a company I can put my trust in and is Debt settlement an option worth exploring?
I have no idea if the company is a scam. What I can do is give you some sound advice about what to do when looking for the right kind of help.
I would recommend that anyone considering using such a company should read the following two guides.
- The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
- 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You
You will want to pay close attention to the review the company offers before they try to sell you into their program.
I do have to say that the “Your Options” page on their site does concern me a bit. – Source
Their own words and advice on that page appears to make some unsupported claims in order to promote debt settlement as a superior solution. “Nationwide Debt Direct provides one of the strongest proven debt-elimination processes to help you become debt free in as little as 12-36 months!”
They also slam CCCS or credit counseling even before determining if it might be right for you in your situation.
They then discount a debt consolidation loan and label bankruptcy as a method of last resort. All of this appears to direct consumers back to debt settlement as a superior option.
If you are looking for a fair and balanced approach which puts your situation and needs first, I’d be hard pressed to find anything like that through their options advice.
Now debt settlement might be a good solution for you, but that decision can only be made after carefully reviewing all available options and matching possible solutions with what you want to accomplish.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
What you might find is that since you can pay your monthly bills now but need some more breathing room, an unsecured debt consolidation loan may be advantageous. If your credit is good and the consolidated interest rate is lower than what you are paying then it might just lower your payment, give you the breathing room you need, and work to improve your credit moving forward.
Your concerns and observations over the consequences are legitimate and should be a concern. When you default on your payment to the creditor, the creditor can then avail themselves to all the rights in your contract with the creditor. This will certainly include negative marks on your credit report, collections calls, and possibly suing you. If a creditor does sue you they will sue for the full amount due, plus late fees, penalties, and attorney costs.
The debt settlement approach will also include a negative notation on your credit report for seven years which will show the delinquency. The fact you may settle for less than you owe will show as a negative mark as well.
Please post your responses and follow-up messages to me on this in the comments section below.