Know of a Trusted Debt Relief Company?

Question

I am $47k in cc debt and I've been searching around for a trusted debt relief company that will help me get out of debt quickly but not impact my credit score (up to date in payments so far) as i am just keeping my head above water and my credit score is still up there. I've heard of such places but some companies are just sharks. Anybody know of a company they have dealt with and came out ok?

Thanks!

Answer 1

If you are really looking for a company to handle it for you, then take a look at nfcc.org.  The National Foundation for Credit Counseling can give you a list of companies that can be trusted to do the job.  I always recommend that people really look into doing this themselves.  Credit card companies are generally eager to settle debt rather than have card holders declare BK and end up with nothing.  

You know your financial situation better than anyone.  And you can't trust anyone like you can trust yourself.  Just know what you are trying to accomplish when you contact your creditor.  It isn't a difficult process, but there are a few procedures you need to follow.

When you are in conducting a credit card debt negotiation, its important to know that you are negotiating for a position of strength. The Credit card companies don't want you to default. They make their money by receiving consistent payments from you. Payments that can go on for years and years.

You are the one in control. You have something that they want to get from you, your payment. If your polite, professional and firm, you will get what you want.

This is a serious situation. They do have the ability to instigate legal action. This is unlikely on smaller balances, but is always a possibility. I have seen balances as high as 15,000 dollars end up being charged off without legal action. I have also seen balances as low as $500 go to court after just a few calls. But even court action is a fairly slow process, and you have time to react and negotiate the debt before the court date.

First, you need to make sure that you communicate by mail. Don't give the collector a "no way out" situation by telling them to never contact you again. You have them backed them into a corner where they have little recourse but legal action. Credit card debt negotiation involves a level of compromise.

Instead, tell them they can contact you only by mail. And that they can never contact you at work. You will need to draft a letter to this effect and send it to them by registered mail, return receipt. In fact, all future communication with the collector will be by registered mail. And you always want to make sure you have a file of the delivery receipts and a copy of the letter available so that they can't dispute that it was mailed, and that they received it.

The problem with phone calls is that when you are involved in credit card debt negotiation, you need to have verification. If it wasn't written, it wasn't done because you have no way to prove it if you end up in court.

Begin your credit card debt negotiation at 30-40% of the original debt amount (but expect to settle realistically at a 30 to 50 percent discount).  You will have much less wiggle room if you are going to settle with a payment plan rather than a cash settlement. The collection agency may have added on fees and charges that you should not include in the settlement amount. These fees just amount to the collection agency trying to make more money, and have nothing to do with the debt to be settled.

Since on the "secondary market" debt is traded at literally a few cents on the dollar, the collection agency is making plenty of money, even if they end up settling at 30 or 40% of the original debt.

Don't sound to eager to settle. Be calm and collected. Don't get angry, don't show hesitation. One thing I really want to add is NEVER let them know that you have some specific reason for settling the debt. Many people make an effort to settle before applying for a home loan for instance. This information is none of the collectors business. If they find out that the reason you want to settle is so that you can buy a house, you will never get a settlement.

So, in review.

1. Never talk to a collector on the phone. Always use registered mail with a return delivery receipt.

2. Start your negotiation at 30 - 40% of the original loan amount.

3. Don't include the collection agencies add on fees as a part of your credit card debt negotiation.

4. Be calm, educate yourself to the process so that you can speak from a position of knowledge.

Just be patient. And make a good deal. Soon, this will all be behind you. Your credit card debt negotiation means you can get on with your life.

You said you want to get out of debt quickly without it affecting your credit score, but the bottom line is that anything short of paying the amount due, on time and in full is going to affect your score.  

Debt negotiation can accomplish a lot of things.  You may want to try negotiating a lower interest rate, or NO interest.  

Ted Batron

http://www.no-debt.net/debt-info

Answer 2

Check here for credit counseling in your area:  http://www.nfcc.org/.  These are legit, non-profit companies who can look at your finances and advise you how to proceed. They have debt management programs available for nominal fees.

The negotiate with your creditors to lower interest rates. You won't be ble to use any of your credit cards and while in the debt management program, your credit file will be annotated that you are in the program.  However, upon completion of the program, that will be removed and you will still have decent credit.

Answer 3

Most of them are ripoffs.  They will charge you thousands of dollars in upfront fees and then most likely tell you to stop making payments on your credit cards, while they "negotiate" with your creditors - which will result in your creditors declaring your accounts in default and suing you.

If you need legal help, or help negotiating with your creditors, consult with an attorney.  No credit card company that I know of will negotiate with any debt relief company.

Answer 4

Rawski, Debt relief is a common problem many americans are now facing. Every legitamate debt relief service providers will give you advice for free. http://www.debtreliefreview.com Try contacting multiple debt relief services and inquire about your questions and listen to thier answers. You should be able to tell which ones are providing helpful advice.



Good Luck.

Answer 5

Sure do, try http://www.loanrelief.com/?freedom

Answer 6

Maybe go to your bank and talk with a financial advisor.