My husband and I just bought a house and then (of course) I lost my job (salary of $38,000). While I am currently out job searching, I am using my half of the savings to pay my half of the bills. My husband pays the mortgage/utilities/phone/etc. & my responsibilities are gas/groceries/debt. I am paying about $50-$100 above the minimum payment each month (which equates to about $900).
So, in my state of panic that we might be in big trouble soon (we owe about $20,000 in credit card debt), I filled out a form and was contacted by Debt RX USA. At first, everything he was saying was exactly what I wanted to hear and he wanted to sign me up immediately. I asked him about their credentials, and he told me they were a division from the government, in the BBB, some other fancy name, and to go to the website.
I thanked him & told him I would need some time to talk it over with my husband and he gave me his number to call. Well, I did a google search and found out they are not a part of the BBB, and have a whole plethora of complaints against them. So, I called this guy back and thanked him for his time and told him I was no longer interested.
He got a bit assertive with me and stated “you are not in a good position and would be in a lot of trouble and your only other option was bankruptcy”… Well, I then told him “I wasn’t trying to be rude but thought he was a liar as some of the stuff he told me did not check out.” He got a bit upset, was short with me and then hung up… Well, now I’m scared. Is bankruptcy our only answer?
What would be the quickest, safest, most efficient way to get rid of our $20,000 in credit card debt considering our situation? What is the most respectable, legit debt-settlement company that you know of?
The entire debt settlement industry is under attack right now. What is a skirmish at the moment is going to turn out to be a war. Read “Debt Settlement Companies in for a World of Hurt in the U.S.” for more information.
If you had the cash on hand to settle your debts for 60% in one lump-sum payment, that might be a good approach for you. But I have serious reservations about the path you are on right now. Without replacing your income you are simply draining your savings slowly without any expectation that it will be sufficient to get you out of debt.
What typically happens is that rather than face the situation, people will keep making minimum payments in hopes of a miracle coming along. Before they know it the savings is gone and the problem still exists.
It’s a lot like constantly pumping air into a tire with a big leak in it. At some point you are going to become exhausted from pumping and the tire will still go flat. You’ve got to fix the leak and the leak in your case is the missing income.
Now, it is possible for you to use the power of law to push the creditors into a debt repayment plan that is based on your current household income, but that involves bankruptcy. Even if you don’t want to go bankrupt, I urge you to make an appointment and go see a local bankruptcy attorney to learn what bankruptcy would mean for you. Most bankruptcy attorneys will meet with you for free to review your situation.
I think your radar went off correctly, nobody should ever push you into a debt solution that does not make sense and feel right for you. If the person on the other end of the phone is getting aggressive then that probably indicates they are more frustrated with losing the sale rather than making sure you find the best solution for your situation.