Has anyone ever used one of those debt relife programs?

Question

where they settle your debt and you are suppose to be debt free in 36 months?

Answer 1

It really depends on the service-- but do beware of anything that sounds too good to be true.

My boyfriend has been using "Take Charge America" for a little over a year now; he's on a 4-year program and it's helped him a lot. He has about $5,000 worth of credit card debt from various credit cards. They consolidated his debts, got him amazing interest rates and charge very, very little for fees. He has a flat monthly payment of about $250, but he can increase it if he wants.

The only thing they really require is that you make a commitment not to use your credit cards anymore.

Answer 2

Try using: http://DebtAnswersNow.com

I used their service a couple months back and they consolidated all my debt and lowered my total debt 40%.

Answer 3

RUN!!  They take your money and let all your accounts go 90 days past due. Then they offer lowball settlements under threat you will file bankruptcy.  Not only will this trash your credit, but a lot of credit card companies refuse to play and will just sue you.

Answer 4

I don't know any particular program which you are talking about. But you need to check first before enrolling into such program. For your information debt consolidation mainly comes into the following forms:

- Debt Consolidation Loan

- Debt Management Plan

- Debt Settlement

- Loan Consolidation

All the above have their own advantages and disadvantage according to an individuals financial situation. So you need to first understands what the program includes.

Answer 5

DO NOT.

If it sounds too good to be true, it most definitely is.

Think about it. Why would a company offer to take on all of your debts unless there was a large amount of money for them to make off of you? They'll kill you with interest fees on the entire debt, that's how they stay in business. The money you spend on multiple stamps or the time you spend paying bills online is nothing compared to the time those debt consolidation companies will have you under their thumbs, and the money they will take from you.

Try to budget your money, cut expenses here and there. Set your AC a few degrees higher, or stop using it. Don't drive to places you don't need to go to. Buy store-brand foods. If you smoke, try quitting. The money you save will help you knock out your debts in a hurry. And always pay more than the minimum amount! The minimum payments just keep you at the same level after interest is tacked on. That's how individual companies make money off consumer debt.

Answer 6

What you need to know about debt settlement firms:

Your credit card companies are not going to offer you settlements like 50%, for example, if you are current (not behind) on your payments. Basically, the only way you can get into a position to negotiate settlements is to deliberately let your accounts go into default. This is exactly what debt settlement firms do....They take a monthly amount from you and use that to build a “settlement” account, which will go towards paying the “settlement” at a certain date. Your creditors will deliberately not be paid. They will not be happy about this.

If you are current on your accounts, this process will ruin your credit rating as your accounts will all go into default. Your creditors are under no obligation whatsoever to accept settlements from any debt settlement firm you hire. Their response might be to serve you papers and take you to court.

You don’t have to pay any firm to attempt settlements. You can try this own your own. Just remember, if you currently have good credit, this process will ruin your credit and there’s no guarantee that your creditors will accept settlements. If you are currently in default on your credit cards, you can make your own settlement offers. You don’t need to pay anyone to do this for you.

Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment or mortgage anytime soon. Otherwise, it can be a very good way to deal with your debt.