Okay, so I’m about 12,000 in debt. I have three credit cards I’m currently paying on. I called a debt counselor and was hoping they could lower my monthly payments. I pay roughly 300 dollars a month to all 3 credit cards. I only get 900 dollars a month, so 300 dollars is a big chunk to have to pay 
So any how, when I talked to the lady she said I would be paying anywhere from 300 a month to 350! That’s already what I pay now! I just thought that debt counseling or management was suppose to help people lower their payments! I’m just confused as to what I should do. Should I just file bankruptcy?
Thanks
Kim
ok.i was in your boat about a year ago.in this kind of situation,i think you should consider debt settlement.now this does have pros and cons.now if you do go with this option,do your homework carefully.there are a lot of bad companies out there. now most companies settle the debt for about 40%+fee.now the advantge is that you end up paying a percentage of the debt plus fees over a payment plan period.most companies will charge 10-15%.so if they settle you would end up paying 55% of your total debt which is about $6,600.now it will impact your credit because you have to cease payments to the creditors and you have to close the accounts.once you settle the debt,youre score will go back up.this is much better than bankruptcy because it will not have the long term affects.now if you find a company that charges this much,you could do a 36 mo.plan would bring down your payments to about $185 per mo.hope this helps.
Were you speaking with a debt consolidation firm or a real non profit debt counselor like CCCS? Consumer Credit Counseling Services (CCCS) can negotiate reduced interest and payments (but not settlements for less). You can get a referral at: http://www.nfcc.org
Filing for Chapter 7 would discharge this debt. The cost to file is usually in the $1,500 range. Do what’s best for you….Once you file for Chapter 7, you can’t file again for 8 more years, so make sure that this is really a financial emergency before you file. Chapter 7 does not destroy your credit rating forever…or even 10 years….You can have good credit again in as little as 2-3 years after filing. Do try to avoid filing though if at all possible….good luck.
Stay away from any "debt consolidation" company that promises to cut your payments and debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements.
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Stop paying on the credit cards. Its a circle that just goes round and round. You will not get anywhere with the Credit card companies if you continue to pay them.
My experience and my suggestion is that you save up money, call them back after they stop all the late fees and finance charges. That will take about two months or so.
after you have half the money saved call them back and make your offer to settle.
if you cannot do that- the credit card companies have insurance anyway they will file with their insurance and get paid that way. The credit card companies then will send you a 1099 form for income earned and you will pay a little bit of taxes on that-no big deal-. We got a notice of cancellation of debt for $25,000.00. We paid a couple of hundred in taxes and it was done. you decide how you want to handle it now.
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ok.i was in your boat about a year ago.in this kind of situation,i think you should consider debt settlement.now this does have pros and cons.now if you do go with this option,do your homework carefully.there are a lot of bad companies out there. now most companies settle the debt for about 40%+fee.now the advantge is that you end up paying a percentage of the debt plus fees over a payment plan period.most companies will charge 10-15%.so if they settle you would end up paying 55% of your total debt which is about $6,600.now it will impact your credit because you have to cease payments to the creditors and you have to close the accounts.once you settle the debt,youre score will go back up.this is much better than bankruptcy because it will not have the long term affects.now if you find a company that charges this much,you could do a 36 mo.plan would bring down your payments to about $185 per mo.hope this helps.
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experience with debt settlement
It really depends your situation. Now we all know that debt settlement have their own pros and cons. And companies that are good experienced at settlements and have a track record of success offer you an honest assessment. The assessment will point towards the likely downsides linked to the credit card debt relief in a situation. But debt settlement is not an appropriate and right method and should be the last option for the user. The program is planned for people under severe debt problems who are badly in need of credit card debt relief.
Make sure that you are talking with the correct company that will be able to help you negotiate or settle your debt, and not make it worst.
References :
http://www.debthelpguru.com/