I went through a debt settlement company called Credit Solutions. I pretty much don't have anything good to say about them. I eventually ended up cancelling all my accounts with them and getting some money back. The basic problem with debt settlement is that you can do it on your own without paying someone else. When I finally ended up having to deal with the credit card companies on my own they told me that they don't work with these companies and that Credit Solutions only contacted them once over a period of a year. I
Well, that is just awful. We went through a debt settlement company and we settled with our credit cards. Is that really looked at as a bankruptcy? My parents went through bankruptcy...not fun! Is there anything
It's not as simple as saying "it looks like a bankruptcy..." Debt settlement companies want you to stop paying all your credit cards, so that they can then go to the companies and work out a settlement, which is less than what you are defaulting on. Mind you, once you stop paying, and rack up late fees and exorbitant interest, your balances are much higher than what you started with. Then the companies "negotiate" a lower settlement amount.
Ultimately, what hurts your credit is the late payments and non-payment. If right now, before settlement, you aren't paying, then your credit is probably already bad.
If you do "debt management," that is noted on your credit report but goes away once you graduate from the program. FICO says that debt management programs are NOT used to determine credit score.
That said, a lender could ignore your credit score and still deny you a loan because you look like a risk just from being in debt management. If you're still in that program however, why would you be trying to buy a house??? KWIM?
If this is really your only way, look at Credit Counseling Solutions. Just google that and find your local office. That is the non-profit company.
I went through a debt settlement company called Credit Solutions. I pretty much don't have anything good to say about them. I eventually ended up cancelling all my accounts with them and getting some money back. The basic problem with debt settlement is that you can do it on your own without paying someone else. When I finally ended up having to deal with the credit card companies on my own they told me that they don't work with these companies and that Credit Solutions only contacted them once over a period of a year. I
Well, that is just awful. We went through a debt settlement company and we settled with our credit cards. Is that really looked at as a bankruptcy? My parents went through bankruptcy...not fun! Is there anything
It's not as simple as saying "it looks like a bankruptcy..." Debt settlement companies want you to stop paying all your credit cards, so that they can then go to the companies and work out a settlement, which is less than what you are defaulting on. Mind you, once you stop paying, and rack up late fees and exorbitant interest, your balances are much higher than what you started with. Then the companies "negotiate" a lower settlement amount.
Ultimately, what hurts your credit is the late payments and non-payment. If right now, before settlement, you aren't paying, then your credit is probably already bad.
If you do "debt management," that is noted on your credit report but goes away once you graduate from the program. FICO says that debt management programs are NOT used to determine credit score.
That said, a lender could ignore your credit score and still deny you a loan because you look like a risk just from being in debt management. If you're still in that program however, why would you be trying to buy a house??? KWIM?
If this is really your only way, look at Credit Counseling Solutions. Just google that and find your local office. That is the non-profit company.