Debt settlement

joebatters · Aug 23, 2010

I think I saw this thread on the rx before, but don't remember too much about it. Anyway, I hear these commercials where you can settle with the credit card compainies for about half of what you owe, if you owe over 10K. Is this legit? I know some companies are rip-offs, but some seem legit.
My situation is this: I've been divorced for about 7 years and recently filed with the court for a change in the parenting schedule. My kids are now 14 and almost 12 and their relationship with their mother is strained, so I had to do something. I went into this in October of '08, thinking the process would cost about 3-4K. Unfortunately, it is now 8/10 and it has cost over 10K. Anyone who's been through this knows how fast these lawyers bills add up. Plus, I had to miss work a lot last school year as my oldest son was sick. Anyway, I now owe about 12K in credit cards...it sucks. I am 54 and have never had a problem with credit card debt like I do now. I 've always paid my debts, but if a program like this exists and is legit why not take advantage of it? The people I have spoken to say the money is available due to the Economic Recovery Act..is there really such a thing? Just wondering if you guys can help me with this. Thanks in advance.

theoriginallefty · Aug 23, 2010

i am in the debt settlement business and there are a lot of companies who are scams. the money is NOT due to any economic recovery acts. the program works as long as you understand that it will have a negative effect on your credit for the time you are in a program. if you are interested in talking about this i would be glad to give you my number.

bigbet1234 · Aug 23, 2010

Joe, 12K isn't that bad at all.

Try contacting the credit card company and letting them know your situation. See if you can get the interest reduced. Let them know it is either this, or the alternative. They may cut you a break, or may not.

theoriginallefty · Aug 23, 2010

joe, big bet is right about that. if you can work out a deal with the banks it would be best. some banks will help, some won't. fyi, i am a former poster from way back in the glory years of costa rica. i spent 7 years working there and posted under the name lefty. i still read the rx every day. it is the best free entertainment on the internet

Hitman26 · Aug 23, 2010

Debt settlement companies are ripoffs. Here is how they work. You turn over all of your debt bills to them and pay them monthly. They then don't pay any of your bills and collect your monthly payments and bank it calling it their "fee". After they get around 2-3 grand for themselves, then they start paying your bills however most if not all of your bills are in default so then they can "settle" with the cc companies because the cc companies don't think they are getting paid because you haven't made a payment in 6 months or more.

If you google the most complained about businesses to the Better Business Bureau's or the FTC, debt settlement companies are at the top of the list.

Hitman26 · Aug 23, 2010

So after it's all said and done, you've paid 3 grand to destroy your credit. The debt settlement companies often don't follow through after they have collected their fees hence most of the complaints.

cut-paste-hero · Aug 23, 2010

JB, are you in Akron... going thru court in Summit County?

theoriginallefty · Aug 23, 2010

hitman, don't believe everything you read on the internet. my company has thousands of satisfied clients. the problem is many companies do not explain how settlement works. No one ever said it is a perfect process but what is? it is no different than the sportsbook industry. there are good books and bad books, and the bad books can make it tough for the people who really do care.

joebatters · Aug 24, 2010

Thanks everyone...cut-paste, I live in Delaware County.
Lefty, I would really like to talk to you if I could, please IM me when you get a chance ok?
Thanks again everyone...the impression that I got when calling around is that there are some good ones and some ripoffs, but I don't know who's who.
Thanks again.

CowboyT · Aug 24, 2010

It's your debt so pay it back. This is ludicrous. It's not like you have $50k. Work harder and reduce your lifestyle. We all have problems. Don't take some bs cop out. Lift up your skirt and grab your balls.