Question
Debt settlement with The Debt Answer?
Is anyone familiar with The Debt Answer? If so, please give me some feedback with your thoughts. I have about 13 K in debt, pretty young, and knowingly going into this with the understanding that my credit score is going to be pretty trashed for the Next two years. I feel over whelmed and as if there is nothing else I can do. I have applied for multiple loans/ credit card balance transfers (which just got me into more trouble) and they will not approve me for a loan to consolidate. I feel like this is my last resort. So, basically knowing that I am going into this to get out of debt faster and trash my credit score. Do you know what this will do to my credit score let's say in 10/20 years? I am 22, am please do not ask how I accumulated so much debt. I know this is going to be harmful for the next few years. I do not want this to haunt me for the rest of my life. Thank you for all of these great answers! Now if the company has a law office/attorneys working for them does that lower your chances of being sued? I feel like my wheels are just spinning and nothing is changing....over and over and over. I need to take a step so when I do want to Buy a home or make a big purchase this stuff will not still be following me around. Thank you! Should I keep one credit card open too? What should I tell these credit card companies that are calling me due to a delinquent debt? I obviously wouldn't tell them that I am looking into a debt settlement program....right? ?
1 month ago - 4 answers
Best Answer
Chosen by Asker
In a debt settlement program, you stop paying your creditors altogether (trashing your credit, in other words). You save the monthly payments you were making in a savings account. Once you have saved sufficient funds, the company will contact your creditor, and attempt to negotiate a lump sum payoff of your debt, often for a significantly reduced amount. Keep in mind that your creditors have no legal obligation to accept the debt settlement company's offer. They can still sue you. Be careful when selecting a debt settlement company because you will stop paying your debts. Your credit will end up in the dumpster and you may be faced with extreme collection efforts, including having lawsuits filed against you. Debt settlement companies often do not have lawyers available to assist you in those situations. You will also likely have to pay high fees to participate in the program, Find out what your total costs are and who is receiving your money. Make sure you find out who is responsible for saving your money in the program. Some require you to send monthly payments to the company or to a third party, while others require you to simply open your own bank account. And even if you save significant amounts in the program you may owe income taxes on the amount of "forgiven" debt. Proceed with caution
by ∞infiniti∞
1 month ago
Asker's Rating: 
Other Answers
Debt settlement should be the last resort. If you choose to do it anything you settle over 600.00 will be considered extra income and you will be taxed on that amount so don't be surprised if you owe the irs money when you file you taxes. Also this will be on your credit report for 10 years not 2. You can build you score back up after a couple of months but it will take some time. Debt settlement is the step before bankruptcy. Also if you settle most company's will want there money within 30 days, some may be willing to work out payment plans but you will have to ask them. What I would do first is call all of your creditors and see what type of payment plans they have that lowers then payments and interest some will even be willing to stop late and over limit fees. Good luck.
by Baby boy due March 7, 2010- 1 month ago
Negative things stay on your credit history for 7 years. After that you'll be fine. Good things stay for 10 years. So, if you have one card in good standing now and default on all the others, your credit will be just fine 7 years from now. First, consider what would happen if you did nothing: 1) The collectors would call you and send you letters
by Edaphos- 1 month ago
I would check out debtreliefreviews ... They have a list of very good debt relief and help companies.
by Travis- 1 month ago