I have been reading online materials for months now with regards to Debt Reduction and even talked to different debt specialist. The total amount of unsecured debt is $ 43,000.00. I pay on time the minimums and with this type of payment, I'll have to pay creditors for the rest of my life - a never ending battle. Yes, I did some BAD choices and want to find way(s) change my current debt status.

Considering all the options and informations I have gathered, it seems like my only way out is debt settlement. The reason is my high debt-income ratio so debt management is not a plan for me. I definitely do not want to file for bankruptcy! I've discussed my situation with different companies like The Debt Counselling Foundation; CCCS; Debt Reduction Group; DTS Financial; Christian Debt Consolidation; Lawgistix; Option One Financial; Credit Solutions and CuraDebt. The plan they offered other than Bankruptcy is DEBT SETTLEMENT.

Reading all the FTC guidelines on how to choose credit counselling company, Debt Management Programs and other related materials, I've noticed that none have posted about DEBT SETTLEMENT.

My concerns are:

1. Is debt settlement my ONLY way out?
2. Is it even recognized by FTC to help consumers?
3. Is it a proven plan? (any success stories)
4. Can a less than 3 year debt settlement company really settle?
5. Assuming I enroll in debt settlement plan, can creditors continue to
charge me different kind of fees? and sue me?
6. What if the creditor(s) do not want to settle? Where that leaves me?
more debts and problems?
7. Is there such thing as 100% Money Guaranteed?
8. Any news coverage about Debt Settlement?
9. Any credible debt settlement company (in TX) that you can refer me to?

Thanks in advance for your time in addressing my concerns.

ScottGem

Debt Settlement, from what I know, is simply having a 3rd party negotiate a a reduction in your balance with your creditors. You then have to pay that balance in full. Whether you enroll in such a plan or nbot does not obligate the creditors to deal with the negotiator. If you don't continue payment during the negotiation process (which can be lengthy), the creditor can take action against you.

Debt Settlement hinges on the idea that if borrower goes into bankruptcy the creditor can get nothing. Half a loaf is better than none. So bankruptcy has to be a real possibility as an incentive.

If your credit is still good and you are able to meet your payments, I would be loathe to take that route. One thing you can try is using low interest transfer offers and move your debt around. I recently moved a large chunk of my debt into sub 4% interest for the duration of the balance. Even if it a limited time on the transfer rate you can still move smaller balances, and pay them off.

One last point. Yes you are paying lots of interest to the creditors and you may never pay off the balances. But once you are dead it won't matter. As long as you can make the payments, I would tend to stay away from such services. Its only when you can't keep up the payments that you need help.

fredg

Hi,
It seems you have done much, much research on this. I will not attempt to answer all your questions, cause I am not a Professional in this area.
I will, however, suggest you talk with a Lawyer, one who is suggested by others, experienced in matters such as this. He/she can explain your options, legally, and sometimes, the only way out is to declare bankruptsy.
I do wish you the best, and good luck.

myconcerns

Thanks again for taking your time to read and reply to my post. Yes, I can still pay minimums on time but soon worry that I may not because as of this month two of my creditors have increased my min. payments.

Due to high debt-ratio my all my applications for a new card and loan were denied though I have a good credit history and fico score is still in good standing.


Yes, am trying to learn and understand all the programs and plan available to us consumers. You are right, it would be wise if we consider talking to a lawyer who knows more about legal matters concerning my case.

Have a wonderful weekend.

ScottGem

I'm not talking about NEW cards. I'm talking about balance transfers for existing cards. I too have a high debt to income ratio. Yet my existing cards keep bumping my lines and offering low rate balance transfers.

ScottGem

Comments on this post shunned disagrees: I wouldn't recommend a low interest transfer offer.

First, may I suggest you check out this thread:
http://www.askmehelpdesk.com/feedbac...ure-24951.html
on using the comments feature. One of the areas most people agree on is not to use a negative comment when the isue os one of opinion, not fact.

Second, why wouldn't you recommend it? Anything you can do to lower the interest rate on your debt has to be helpful in reducing that debt.