Find a Conversation
|Fri, 05-30-2003 - 3:14am|
My husband and I were about $25K in debt due some bad business decisions a couple of years ago. We didn't want to go bankrupt, so we looked into an alternative settlement company. What a mistake! They gave us a sales scam telling us that our credit would be improved once we settled our accounts. We were supposed to build up funds so that they could negotiate a settlement with the credit card companies. We sold a vehicle, and took out a 401K loan so that they could begin settling the accounts. They didn't tell us that they are dependent on holding off payment for 4-6 months before they settle and that we would get continuously harassing phone calls (including calls at work) even though we had saved up significant money to pay toward the (reduced) debt. I feel really dumb for falling for it, but we were desperate. At any rate, we ended up closing the program and getting half of our initiation fee back. Because we were so far into it, two of the credit card companies agreed to settle with us for 50-60% of the debt so we are still about $16K in debt. I'm frustrated that this type of scam is allowed to go on especially since they are feeding off of people that are in desperate situations already. I'm looking at a debt counseling program but am nervous about how much more damage it will do to our credit report. Does anyone have anything to contribute regarding credit counseling programs? Will I be unable to attain credit for anything for the two-three years that I'm on a program? Any help is much appreciated.Thanks!