I’m Working With Franklin Debt Relief on a Debt Settlement Program. – Rob

“Dear Steve,

I had about $12,00 worth of credit card debt. I signed up with a debt settlement company (Franklin Debt Relief) and they worked down my two biggest debts. However, it does show as settled for less than full amount.

I have three more debts that need to be paid. I had to make three large monthly payments to finish those first two debts, and then my car was stolen. While I no longer had a larger car payment, I also had no car. So I was forced into a loan with a local used car dealer, but the payments are still less than before, but the down payment did not allow me to continue putting money into the debt settlement program.

I am now being contacted by them to try and settle these final debts, but they have been charged off and into collections. I have considered taking a loan from my 401K and trying to settle these debts so I can try to repair my credit as quickly as possible. I currently work 180 miles from home, so I spend part of my week at my mother-in-laws with my family and a few nights in a hotel where I work. I want to get a house so I can finally move my family down here as soon as possible, but I know credit repair takes time.

I guess my question is, what would you recommend? Should I speak with the collections companies and try to settle the debt myself? Should I continue with Franklin Debt Relief and have them settle my final debts? And once they are settled, how long should I expect before my credit begins to improve?

I have two open credit card accounts with low balances that I pay each month so at least I have some positive things reported on my credit report. Any help is greatly appreciated and I would be happy to provide any additional information you need.


Dear Rob,

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Nice to hear you appear to be satisfied with the service provided to you by a debt settlement company. A welcome change compared to all the other emails I get about debt settlement programs.

See also  Franklin Debt Relief Worried Debt Settlement Fees Will Be Controlled By Credit Card Companies

I really can’t answer your question without more information. I need to know how much you owe on those two accounts you want to settle and how much you can afford to save or pay each month.

In general I am very opposed to borrowing money from a 401(k) to pay off debt but I’m willing to consider it with more information about your situation.

I am concerned that you work so far from home and that you might just be making it barely from month to month with your new financial obligations.

The good news is that if we can resolve those two last accounts to settle that it should not take longer than a year to see a marked increase in your credit score.

Fill me in through the

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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.
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