[lillers]

Hello all!
I am looking to hear from sopmeone who has any experience whatsoever, say themselves ro someone they know, with a Debr Relief service. My understanding is they set an amount with you to pay per month, then negotiate with your creditors for up to 40-60 cents on the dollar. Your credit rating drops because you do not pay your creditor (unsecured debt only). But once you have all of your balances (as negotiated) paid in full, your fico score bounces back for the most part. I am looking for a reaon to do or not do this for my credit card debt. I am putting my groceries on my credit card because if I don't then I have to not make a pyament. Not proud of it but I can sulk in that when I get the problem fixed.

[KaraG]

A better idea is to go through a debt management company. They work with the credit card companies in a positive way, reducing your interest rate. You pay them each month and they divide your payment among your credit cards. You can check each month to make sure payments are being made and your balances are going down. They can usually help you get out of debt in 3-5 years.

The debt negotiation companies make things worse for your credit. They keep your money for months, you incur more late charges & interest & penalties & higher interest rates. Then you never know for sure if the credit card company will settle and if they do, you may have to pay income tax on the unpaid balances.