I made 2 huge mistakes regarding my credit. The first one was to call and find out about debt settlement companies.
I had about $32,000 in credit card debt mostly from financing 2 direct selling businesses that went nowhere except in debt.
I am working full-time as an RN in a hospital setting and was making payments on time every month and then was vulnerable to these debt settlement companies.
The first one I used was Freedom Debt Relief and was told to stop making payments and they would deal with the creditors. During the first 6 months of not making anymore payments, they settled one account, but what I found is that they wanted additional money in addition to the monthly payments I already made to settle these accounts which I could not afford and knowing that the creditors are now tacking major fees and late payment fees to these accounts.
Then I received what I thought was a legitmate notice in the mail for Pennsylvania residents to decrease their debt. I called and the person I spoke with said I was not eligible consumer credit counseling and recommended another debt settling company–World Law Debt.
I have been with them for 3 months and going to cancel and will follow the steps to try and get all my money back. They have contacted me twice regarding various issues and getting my statements to them so they could contact the creditors.
On Friday, I received a visit from a constable serving me with a civil lawsuit from Capital One on March 29, 2013. I tried to call World Law Debt and enter an extension for a legal assistant to find that there was no such extension existed. I tried to get a person on the line with no avail.
I started looking online and saw numerous complaints regarding this company and how they are not registered with the BBB when they said they were and it is in their correspondence. I also looked at my escrow account with Global Solutions to find tons of fees not associated with paying my debt.
I have invested a little over $1,500 and have nothing except more debt and a civil lawsuit. I am distraught and will be asking advice from an attorney this week. That is my background.
My question is how am I going to be able to settle these debts without filing bankruptcy? Will I be able to reliquish my credit?
You seem like a smart and intelligent woman. It also seems like you might have made an emotional decision to pursue debt settlement rather than investigate all of your options.
Whoever told you, you are not eligible for consumer credit counseling sounds like they were telling you just about anything to sell you something.
Isn’t it time we actually dealt with the underlying debt in such a way that would stop and prevent lawsuits and wage garnishments?
The answer to that should be a resounding “Yes.”
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.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.