DEBT SETTLEMENT

iVillage Member
Registered: 04-10-2003
DEBT SETTLEMENT
1
Thu, 04-10-2003 - 4:57pm
I have just entered a debt negotiation process, not credit counseling, but where they actually negotiate a lower settlement for you with your creditors. I am very nervous about it and am hoping somei=one who has gone through this can give me some feedback. It is a reputable company, and I don't send them any money. I save a set amount monthly and when funds are available to pay a settlement, I pay directly to the creditor. Due to an illness we have found ourselves deeply in credit card debt ( 60,000 ). and it is the only alternative for us besides bankruptcy. If any one has had success with this I would to like to hear it. Thanks so Much
iVillage Member
Registered: 02-14-2003
Thu, 04-10-2003 - 6:26pm
Hi Cheryl. You should also post on Debt Q&A for feedback from our debt expert and the people waiting to answer your questions about debt repayment. :o)

How do you know this company is reputable? What happens with your creditors while you're sending money to this third party to hold? What happens to your money if this "reputable company" disappears? Did the company make you aware that future creditors will see that you do not pay your debts in full? Did the company alert you that you will receive a 1099 and have to pay taxes on any charged off amount? Did the company let you know that even charge offs are still collectable debts?

I'm sorry if I'm scaring you. But, I'm scared for you. I understand how crushing debt is. I understand about grasping at anything to make it easier. I just can't recommend this route. If you want to settle for less than you owe with your creditors, you're better off making those arrangments yourself. Take a look at our Bankruptcy board. You may find more peace of mind there.

Please keep posting so we know how you're doing and can offer hugs and advice along the way.

CM Ms Joe Cool

Senior Community Moderator

moneylifecm@mail.ivillage.com

Ms Joe
CM Ms Joe Cool
Senior Community Moderator
moneylifecm@mail