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Link provided by Calawyer: I have seen a number of posts recently about credit counseling scams and we have also seen some CC spamming here. The following article is an excellent report prepared by NCLC on the entire industry and the law relating to credit counseling. It may be more detailed than some of you want, but I think it is a very interesting read: http://www.consumerlaw.org/initiatives/content/creditcounselingreport.pdf *** By all means first try calling your creditors to negotiate for hardship programs and reduced interest rates. If you so choose to go with a CCCS programs, then be aware of these possiblities and cover yourself in the event that something goes wrong. Read your contract - and understand penalties for not completing the programs, and that sometimes creditors can be hard to deal with should you try and remove your self later from the program. Always best to consult your creditors first and ask what can be done let them know what you are having problems with should you have to consider backing out later. 1. Call the creditor to verify the interest rates which the company claims to have negotiated for you 2. Ask the company what time of the month they intend to forward your payments to the creditors and if this happens to fall past a due day of any of your creditors. Then you need to call the creditor and make them aware that you need to change your due date with them. 3. If the company wants you have your creditors re-direct sending your billing statements to them, instead set up duplicate billing - so if they fail to pay your creditor on time, you will at least find out of it the following statement. Be sure that should this happen you want to make alternate payment arrangements immediately to catch the account up - and ask the creditor for good will not to penalize you by defaulting your interest rate because of the this incedent resulting on the part of the CCCS company. 4. Understand that when starting out these companies most likely will require a first month fee; and won't start paying your creditors until there fee is met in full first. So be prepared to pay double starting out just so you don't result in defaulting the negotiated agreements with the creditors. 5. Yes, some creditors will notate on your credit report that the accounts are currently in debt counseling; and in addition will require that the account is closed. 6. Yes, this is considered just as negative as bankruptcy 13 listings on the credit report. But this is better then defaulting on the accounts because you showed responsibility in taking care of the debt in the end. *** *** *** What I would do, when credit card debt is high; is make a list of what companies need to be paid each month. In order of interest rates (not balances). Exception to this rule is if you currently have any balances over the credit limit, if that is the case pay minimum on all other card and all of the over the limit balance plus $50 to get below the credit limit on the one! Want damage control as soon as possible in these cases, since interest is defaulted to higher rate and over the limit fees are added (this will get away from you fast if you don't get it back below the credit limit). On the highest interest cards pay minimum payments on all but the highest interest rate card, double if at all possible the minimum payment on this account. Also make note of what available credit is on the other cards; and do partial balance transfers of the highest interest rate card over to these smaller ones (be sure to read your policy on both cards to know of fees and such). To decide if this will be beneficial to go ahead and transfer. Remember you can not balance transfer between affiliated card companies... This is a slow route to go, but keep your chin up, it is the best way that I know of to rehabilitate this situation. Recommend that you leave the account open; and do so for a period of time for it to help the credit scores increase later as a result of the balance / credit limit ratios decreasing. Don't use it again just put it away until later. Once you have this completed move to the next card (with the highest interest rate) doing the same exact thing; paying minimum on all others and double on the one (and if possible balance transfer partial balances over to the lower interest rate cards)...again leave this account open, don't use but put away somewhere safe for the time being. And it may even be that towards the end prior to paying off, your scores might improve enough; to apply for an even lower interest installment loan with local bank or credit union, to transfer debt over. Periodically as you pay down, keep calling the creditors to review your account; and see if they will lower interest rates for you; or re-age the account (which means they would wipe the slate clean of negative reporting) like lates incurred and revert back to positive reporting. Not all credit card companies offer re-aging; but with a try to ask on this part. It is a good practice to get into using installment loans; they are a sound financial decision which at the same time, does not tempt responding like revolving accounts do. And also at the same time you are developing good solid relationship with these banks & credit unions that you can fall back on later when need be. * With this method; you take control back, and the creditor is not going to necessarily force you to close the accounts as would be required with the CCCS program. (which would further hurt your credit). The idea is to over come but at the same time, rebuild instead of destroy like so many other means out there can do to the credit. Also recommend highly that you take a class with the local college on personal finances; to empower yourself further to get back on track and be more financially minded to apply and use the best type of credit the best way possible. When all is said and done then go back to the credit cards which you have and consider these things: Long established History High Credit Limit If the account is positively reporting (no lates..collections...charge offs) And over all satisfaction with the Creditor Also if these cards are able to cover purchases anywhere (not department store cards). These are the cards to keep (should limit your choices to 3 or 4) and Close the rest! Also you might consider asking good will of the creditor if they would review your account and having proved your worth for them to remove late listings and the such on the credit report. This is so important to ask for since it affects your ability to establish and maintain good interest rates with the other creditors out there that would periodically review your reports (and as a result might increase your interest rates with them). unfortunately. Best of wishes,

Hello, if anyone has feedback on best way to approach Canceling a debt settlement agreement at the 3 year in point, it would be greatly appreciated. I have audited my account with COA, I am very disappointed with their service. 3 years in, I see Constantly debt settled way over their initial projections, not 1 settled even close to what they estimated. I was not provided with any info, rushed to authorized. The entire time I was under the impression the settlements were in line with the estimates in the agreement. also, According to the agreement i am to authorize when and how much they take on each of their fees. Never saw anything like that. many many concerns here. They have taken their FEE before paying at least one payment towards a debt. Several they would make a Payment of $1 DOLLAR. then take a HUGE fee the same day. 1 Dollar! that is the same as nothing. I mean this is bad. I am sick to my stomach. these services need to be banned. they do much harm, they are deceptive. Their "Customer service" is Horrid its non existent . BEWARE OF THESE COMPANIES DO NOT USE CLEARONE ADVANTAGE.

Hello All, I have made some extremely stupid decisions this past 2-3 years and it has left me in a huge hole that looks impossible to get out of and I am looking for advice or any suggestions on what to do. I have been a gambling addict for the past 2-3 years and as of 2 weeks ago have finally confessed to this and I am now seeking help and have been free for 18 days now, this is my current financial situation: Creditor Name Payment Due Date Original Loan Amount Current Balance Monthly Payment Percentage of Debt Interest Rate Loan Term (Months) Disover Card 2nd $0.00 $2,334.20 $69.00 2.11% 23.24% N/A Chase Card 0872 15th $0.00 $2,630.00 $26.00 2.38% 15.24% N/A Chase Card 6214 24th $0.00 $3,002.00 $30.00 2.71% 18.24% N/A Paypal Credit ? $0.00 $3,500.00 $0.00 3.16% ? N/A CitiCard 0534 1st $0.00 $6,923.74 $101.00 6.26% 28.99% N/A CitiCard 1857 17th $0.00 $7,995.00 $119.00 7.22% 28.24% N/A Bremer Bank 1st $0.00 $8,036.83 $164.00 7.26% 24.24% N/A OneMain Financial 1st $10,000.00 $8,825.51 $314.89 7.98% 21.94% 48 Lending Club 1st $20,000.00 $16,779.0 $804.54 15.16% 25.88% 36 Prosper 1st $20,000.00 $17,088.9 $697.33 15.44% 15.41% 36 SoFi 1st $35,000.00 $33,543.5 $589.58 30.31% 10.88% 84 This is a breakdown of my monthly Living Expenses: Item: Monthly Expense Charity $240.00 Housing $1,414.92 Utilities $501.97 Food $306.00 Transportation $1,353.09 Clothing $50.00 Medical $290.00 Personal $280.00 Misc. Items $75.00 TOTAL: $2,915.34 INCOME: $5,766.00 Monthly Take home pay. As you can see I have a total monthly debt/expenses of $7,437.92 with only an income of $5,766.00. I have $11,000.00 in savings, and I am debating between using this 11k to pay off some of this debt, but even if I do I still cannot meet the monthly min. payments. So I am also considering to stop all of the payments on my unsecured loans and save approx. $1,600 ea month and use this and the 11k as a potential settlement 6-9 months down the road once these accounts go to collections. My other option (I think) is to file for Chapter 13 Bankruptcy, but I'm not sure that I would qualify because of my income. Any help or suggestions would be greatly appreciated. Thanks!

I recently received a letter from an attorney's office in Princeton NJ (Schachtner Portney LLC) for a debt bought by Calvary Portfolio Services. The OC is Citibank. The attorney sent back the last credit card statements from Citibank as well as the documents proving that CPS purchased my debt as part of a bundle of junk debt. At this point, I am planning to send a letter to begin settlement negotiation. The amount of the debt is $3,000.00 and the SOL doesn't end until Sept. 2018. My initial settlement offer will be 20%, which is $600.00. Based on reading other posts, I have been checking my county's court database to see if a judgment has already been filed. Ideally, I would like to avoid this at ALL cost, as I already have a default judgment on my CR... I know, I know.... I was young and DUMB because I ignored the summons, and will NEVER allow that to happen again. I just wanted to ask if I'm headed in the right direction, as far my next step being the debt settlement negotiation? Also, what is the likelihood that this attorney will move forward with suing while I am attempting to settle with them? And worse case scenario, IF they refuse my settlement offer(s) and move forward with a suit, should arbitration be my next move? I read this forum frequently and respect all of the expertise and assistance that so many FREELY give! Its great to know that there are good individuals in this world who are willing to help! Thank you in advance!!

A year ago, I settled some credit card debt by agreeing to pay a lesser amount which resulted in those accounts being closed, of course. How long does this hurt my credit score? And by how much? In other words, I've been on some sites that have a simulator that allows you to enter some changes to see what you can do to improve your credit score and by how much. One of those is to pay down your debt. My question is, what is my incentive to pay down debt - for the purpose of raising my credit score - if the debt settlement will hold it down for 7 years (or whatever the period is)?

Hello, I fell far behind on my bills a few months ago. And was living in my car. While this was happening, the car loan was written off as noncollectable. I am now trying to repair my credit. I've joined the us military and have a steady income. The auto loan provider called me a few days ago and said that they are willing to do a debt settlement at about $7500. I owe ~$10,000 on the car. The car is worth $8000. They also said that they would be willing help me sell the car. Alternatively, they said I can pay them about $350.00 a month until the car is paid off. At this point, I just want the car and the debt gone. However, I don't want to do even more damage to my credit. If I choose to do a debt settlement will this hurt my credit further? Or would it be beneficial in the long run because it will allow me to repay the debt sooner? Should I pay the $350 for a few months before I sell the car so that I can repay the debt without doing a debt settlement? Or should I get this loan off my credit history as quickly as possible? Thank you,

Question: Can I call them to start the conversation and indicate that I want to settle? Understanding that all must be in writing from them before payment/etc. Texas resident. I am trying to figure out my best next steps. I have two accounts in collections from 2013/14 when I was unemployed. I let my fear and shame rule me, so I did not talk to my creditors at the time, and have since then been at a complete loss as to how to proceed. I am now determined to get ahead of these. My finances are now back to where I can make payments and can Dave Ramsey-style pay off all my credit card debt. I received a letter from a collections attorney firm last week that states a Notice of Intent to File Civil Law Suit for the $5000 debt. I called the OC and they confirmed the amount and that the debt had been charged off and the phone number for the new contact person matches the number in the letter. I see conflicting information here in the forums re: whether or not calling the CA is appropriate. I understand not making payment or trusting a deal until it's in writing. But my first priority is preventing a law suit. I do not deny the debt to the original creditor. I cannot afford an attorney to represent me in court. I would rather settle this before it gets to that stage. Can I call them to start the conversation and indicate that I want to settle?

I apologize in advance if proper procedure to post for help isn't followed ... After researching so many forums, I'm quite lost. So here goes ... We currently have several credit cards that are in default approximately 18 months. Really wanted to not do a BK, but looking into it just in case. Had wanted to settle the debts. but with different creditors, sold to multiple JDB, this is well, overwhelming! Recently was served notice of request for judgement from Portfolio Recovery Associates for a Citibank/Sears account. 1- filing was not in proper county of residence against us. - As such, we replied with a Objection to Complaint/ Motion To Dismiss. Spoke to that county clerk of court and she advised that was correct because its not in the proper county and they would likely dismiss and refile in our county. Basically, we are buying time here to find a solution and enforce proper case management. This is the first of proceedings that we are aware of. Assuming we elect to not BK the debts (or don't qualify), how can we properly defend against a JDB ourselves and/or obtain settlements with multiple accounts. We have 1 Citibank/Sears, 3 Chase accounts (all in default) and a BOA that is not in default. Any assistance and advise is greatly appreciated.

Today I received a letter for the remainder of an unpaid medical bill from National Patient Account Services (NPAS, LLC). I just checked my credit reports and the collection has not yet reported to the CRAs, and of course, I don’t want it to. I have the thirty days to dispute, etc. Should I just contact the CA to ask for a pay for deletion (under $400) or can they not report anyway because I am paying right away before the thirty days? OR, should I send the payment to the hospital and hope they accept the payment and then if it does hit my CR, dispute as previously paid? OR, should I DV them to stall it out to buy time? OR, is there a better, faster, saner way to handle this situation? My son broke his thumb and the bill was $1000 after insurance paid their portion. So, the debt is valid. I have been successful in getting my credit in working order (fako is 700) and I'd like to keep it moving in the right direction. Advice, please?

UPDATED: 2/11/15 in Post #14 I am 5 months delinquent on an AMEX card with a balance of $15K. The account has been cancelled. While I still owe AMEX the balance, they have Gatestone (the DC) contacting me for the money. Today, I let the DC know I have a settlement offer ready ($7K, one lump sum) with a 'hardship letter' (as requested) as to why I can't pay the full amount. But when I mentioned it, the DC told me she couldn't submit the offer without me first making a payment of $260. She said this was because "my account is still accruing interest." (Duh...) And that this was an AMEX stipulation, not Gatestone. Of course, when I told her that didn't sound right to me, she got angry and accused me of wasting her time. -Is it common to require a payment before I submit a settlement offer? Does that sound right to you guys? -Should I try to send my settlement offer directly to AMEX? I'm concerned about AMEX not even receiving my offer or having a chance to counter offer.

I came across this site while searching for answers to my problem. I am hoping someone can point me in the right direction. Yesterday I got a call from an attorney's office, looking to collect on a debt that I knew nothing about. Turns out it is for a family member who I cosigned a student loan with a few years ago. They defaulted (unknowing) to me, so this attorney company is looking to collect from me. They told me that I was responsible for it now that the other person didn't pay. This particular loan isn't on my credit report, but, under the law, am I legally responsible for it? When I talked to them I told them that I didn't know about the loan. They asked my about 20 times if I was disputing it. I didn't give them and answer either way, because I didn't know what to say. It seemed like they were adamant about me saying that I was disputing it. They kept saying they will have to validate and send me some letter or something. But I’ve been reading about this particular law form, and they are known to “send letters” than never make it to their intended targets, then win default judgments or summary judgments against people who don’t fight back or show up. Can someone please advise me what steps I should take next? The loan amount is $7500.00. As for now I have only talked to them over the phone, and I have not said I was responsible for the debt, and the co-signer has also spoke with them, he didn’t admit to anything either. If the next step is that they send a letter, how do I make sure it actually comes to me? Do I need to send them some sort of certified letter stating what I want? Please help!!

Hi Everyone New here and been lurking for awhile. Great info. After plunging off a cliff (figuratively) I'm starting to pull my life back together. Just brought my 1st mortgage current after falling 6 months behind. Now that that is taken care of I can address my pile of credit card debts. For 30 years I've paid my bills on time even if it meant dipping into my retirement account which is now depleted. After a few years of substantially reduced income, a client who owed six figures told me they can't pay. Suing will take years to resolve not to mention the cost. Sent me off the cliff. I had stellar credit until 9 months ago and had never missed a payment. To recap (don't faint): BOA $31K WF $60K personal WF $40K business CO $12K (kept this current - need credit in my business) Advanta $1,200 - business CC closed years ago when Advanta went under Home Depot - $8.5K personal Home Depot Citibank - $4.5k business (Citi closed account years ago when stopped offering HD card- current balance) Most of my credit cards are with OC's - only the Citi business card has gone to collections and even then I'm not sure it's been sold. I'm close to 120 days late on most so I know time is running out to work with the OC. Here's my question. I would like to repay the entire debt rather than settle. I spent the money so I feel obligated. I would also like to get back my decent credit score and be able to buy a car. Life has turned around 180 degrees and I'm able to start making monthly payments. I also feel like I can explain a 6 month problem on my credit report easily rather than something that drags out for years. I would love to get my creditors to waive late fees and the hideous interest charges that have accrued. Does anyone here have experience with an OC where the borrower requests 0% and lower monthly payments. I understand they will close the account but I don't care. Cash only for me now. Or should I just take the hit to credit and live with collections on my report for the next 7-10 years. Thanks for your help in advance!

Hello, I am in need of some serious help. I have never checked my credit report in my entire life until two days ago when a collection agency called me and informed me that i had student loans in my name. *this is sadly a case of family fraud but i did attend school so I'm dealing with that, it only prompted me to check my credit report to see what else may have happened. I did credit karma (transition) and to be safe got the experian report as well. I am going through all this information still as it has been pretty overwhelming but have noticed a few pretty serious concerns already. First big issue: on the experian report under my personal information it says "also known as" and it is not my name, possible typo on someone end at the original creditor or during the transfer of information I have an account in collections with the improper name on my report. EOS CCA filed collection account for AT&T mobility for $900 You have to have the correct information to even have an account started in your name so Im not sure what to do. second: Multiple accounts in collections that are not mine: AFNI is reporting $297 for SPRINT as well as TRIDENT ASSET MANAGEMENT and NATIONAL RECOVERY reporting columbia house dvd $58 for different dates one in 2009 the other in 2010 and i have never had a columbia house dvd membership of any kind. I have two different agencies SW CRDT SYS and STELLAR REC reporting COMCAST debts for three different amounts and three different dates for consecutive months in a row. but each time that i have used the company i have closed out the accounts and paid them off to a 0 balance. SWIFT FNDS reporting a golds gym membership from 2009 for $202. third: FBCS is reporting EMCARE CENTER EMERGENCY PHYS $528 and I cannot find this company anywhere on the internet to get information to even have an idea of what this might be, ALLIED COLLECTION has two different accounts in collections for RADIOLOGY ASSOCIATES with multiple amounts: one has an original balance of $68 then current balance of $72 opened 10/25/10, the other report is an amount of $40 opened 4/1/2009 on top of that RADIOLOGY ASSOCIATES with the listed address on the report is no longer in business. I have no idea where or what these could be; does anyone else know? Lastly: AARGON AGNCY reporting $12,870 on behalf of RMI Management LLC. the original date opened is not provided but it does have the "last updated" date as 11/1/2008. I don't even know what to say about this one. Is this past the SOL since it is from 2008? Also, I believe that these would be racked up fees of some kind because I definitely did not borrow or get $12,870 worth of goods or services in any way shape or form. To make matters worse, when I asked the woman that called about the student loans where all the documents and notices had been sent as i have never one time received anything about these debts she told me that it was all being sent to an address in california that i have not lived at since 2004/2005. i have been constantly moving from one place to another and only now when i finally settled down and moved in with my fiancé do i have an actually address. I am really freaking out because we are about to get married and this bomb just exploded a few days ago. Clearly, I really need some freaking help. I do not know what to do at all and all of this is new to me and I just don't know where to start. I have been doing a ton of reading to become a little more knowledgable about credit and this whole process the past few days but I am just overwhelmed and do not know where to start. I was going to dispute the accounts that are obviously not mine as well as the ones that are out of business and the other ATT that is not in my name. HELP!!!!!!!!

Last month I made a written offer to settle a debt claimed that I owe by Credit Control, a collection agency acting on behalf of JH Portfolio Debt Equities, a JDB that had apparently purchased debt from a charged off Chase account. I received a response in writing from Credit Control stating that they were authorized to agree to my offer and that once my payments were complete, the account would be settled in full. They also sent me the complete agreed upon payment schedule and stated that my first payment must be received "on or before" November 29th by check, check by phone, debit or credit card by phone. As it was already close to that date by the time I received their response letter, and also a holiday week, I opted to make the first payment by phone and not trust the mail to deliver the first payment on time. I called to make the payment at around 10am on the 29th, (thinking that this would satisfy the "ON or before" due date that they had stated in their letter) and I was told that JH Portfolio had reclaimed the account and placed it with another agency. Is that even legal? Before the due date of the first agreed upon payment had even passed? A week later I receive a letter from a new collection agency, Alpha Recovery Group, requesting that I pay the original amount in full (what happened to the reduced amount that Credit Control had agreed to?). Alpha Recovery's letter was dated November 29th, again showing that this account was placed with them before the due date of the first payment per the previous agreement had even passed. Very confused, and this all seems more than a little shady to me. Not sure what my next step should be. Validation letter? Sit back and wait for them to sue me so I can submit this info to the court? I don't really see the point in trying to negotiate a settlement again if they're just going to accept and then renege before the ink is even dry on the agreement.

On Feb 2nd I received a letter in the mail from DA (Debt Arbitrators) saying that they can reduce my CC Debt of 20k to 11k (See attached) I took out all the personal info for obvious reasons. Included with the letter was a "winter catalog" not sure what the purpose is if that. On Feb. 6th I received another letter very similar to the first on only on it was Pink and some dates changed. So I decided to called them on Saturday (Feb. 9th) and talked with a Laurie from Debt Arbitrators and she was really nice and persuasive explaining the basic process of how it works and convinced me to sign up Saturday using an electronic signing process that took maybe 10 min. to sign everything. The Limited Scope Legal Service Agreement (LSLSA) looked like something from a law firm and legal contract written up by ******* Law Firm, LLC (See attached LSLSA) also attached the service fee's and Savings schedule that they proposed. After I signed everything I started thinking and got a bad feeling that I had just been had. So I started googling Debt Arbitrators name and came up with very, very little (A BBB accredited rating of Not rated and looks like they were only est. on FEB. 02 of 2013) So that got me even more nervous, So I started searching for the ***** Law Firm, LLC that was on my LSLSA agreement and found a Law Firm in Texas with the exact same name as on my LSLSA form, but found on there website that they only do Family and criminal Law. I then went on the Texas State Bar association website and saw that there was only one such Law firm and the contact info matched to the ***** Law firm, LLC Website but not to the LSLSA form that I signed. So I called the **** Law Firm (real one) that I found online and left a msg. saying that I had some questions. The owner of the Firm called me back and I explained everything to her, she was astounded and said that it is was most definitely not them and that they do no such practices. I sent her a copy of my LSLSA agreement form and my letters that I received as well. She was appalled that someone was using her firm's name to make these forms look legit. After that I knew I had messed up big time, so I signed a letter for cancellation and sent it to their email but it came back as Unavailable email address, this email was on the LSLSA form and specifically said that if you want to opt out of this contract to sign so and so and send to this email.... So I tried calling with no answer. Finally I sent the Cancellation letter Certified Mail with Request Receipt. That evening Laurie left a msg on my machine saying that I had violated terms and why I sent LSLSA forms to an unidentified person and that they do NOT appreciate a Law Firm calling them with accusations, and that they are NOT a scam She was more than a little peeved. I heve since been in contact with the real ***** Law Firm and they are proceeding with suing Debt Arbitrators and they are trying to get more info on them. I was asked to be a witness. If you received a similar letter as I did, please let me know. When I was searching for this company when I came across this forum and this is the most informative forum that I have ever seen. The people on here are generous and polite (Something that is hard to find nowadays)

I became delinquent with payments on one of my credit cards (owed about $7000 on it) and it went into collections with CACH, LLC after 4 or 5 months of missed payments. Because I was delinquent on this particular card, the amount owed ballooned up to over $10k. Cach, LLC is being represented by the law offices of Harold E Scherr, and gave me a settlement offer today over the phone at roughly 45% of what is owed. They also emailed me a copy of this settlement offer. Of course the woman on the phone (who was polite) wanted to rush me into accepting and paying this amount asap, otherwise the offer might "expire". After reading articles on this site, I am thinking I might be able to do better and settle at a lower amount. My question is, should I respond with a registered letter to the law firm representing Cach, LLC in an attempt to haggle the settlement down even further (at 15-20%, for example), or should I attempt to deal with Cach, LLC directly in this matter? Just wasn't sure of how to proceed. While the 45% offer is nice, I'm stretched financially and the lower I can settle, the better. I've read on this site that 15-20% settlement offers are sometimes successful, so I was thinking of countering their 45% offer at 15%, as well as requesting that Cach, LLC delete the collection account off of my credit report (which is otherwise clean). Thanks in advance for any suggestions.

Hello Everyone, I just came across this forum 2 days ago and it has been the best information gatherer out there. I have a major decision to make and would love anyone’s input or opinions! Me and my wife have been struggling with paying our minimum CC payment for the last year, but so far we have not missed one payment and are up to date on all of our accounts. Here is a summary of the accounts: Bank Name Min. Payment Balance Interest Citi Card I $93.00 $6,238.85 17.90% Citi Card II $26.88 $3,196.28 24.50% Chase I $37.00 $3,821.33 18.00% Chase II $28.00 $2,836.81 19.00% Prosper Loan $395.79 $8,595.10 14.50% Total: $580.67 $24,688.37 We are going to incur some serious medical expenses from now till August (High Risk Pregnancy) and we are thinking of stopping on all of our payments and try to settle with the creditors ourselves. We have approx. $10,000 right now that we can use for settlements plus the $580.67 per month from now till 4 months (my goal would be to settle with the OC before it goes to collections) would equal a total of approx.$ 12,300.00 to use for settling these accounts, is this reasonable? With my current income and the debt that we will incur via medical bills we are going to have to stop paying in 6 months anyway so I’d rather stop now save that money for a settlement. A couple things to clarify: 1. I DO NOT care if my Credit score goes to Zero! 2. I would be happy with settling these accounts @ 40% or less 3. I look forward to documenting everything and handling the calls and letters. 4. I do not want to be sued or taken to court if possible 5. I do not own any assets (No home, or Car) 6. I have close to $10,000 saved in cash (to be used for Settlements/ Medical expenses) 7. I should be able to prove that I am delinquent at the end of this year so a 1099-C will not affect me My main goal is to just get rid of these pesky irritating credit cards and to NEVER get them again. Right now I plan on stopping all payments by this next month (March) and close down my account with my current bank where I do all my payments with (ACH) on all 5 accounts. Then do all my banking with a different local bank. (I already have an established account) I also am thinking of withdrawing all of my money that I currently have and keeping everything in cash while I go through this ordeal. I also want to get a Cheap pre-paid phone and change all my accounts to that phone # (that way I will know anytime that phone rings I know who it is PLEASE GIVE ME ANY IDEAS/ SUGGESTIONS THAT I SHOULD BE DOING BEFORE I STOP ANY PAYMENTS! Thanks everyone for the help I Strive to learn!

I have student loan for the amount 1250.00 I paid only 10.00 on it because I had to show my previous employer a current payment for them to hire me. So the last time I spoke and touched the collection agency was back in Febuary of 2012, I haven't gotten as many calls...maybe 2-3 times a week? before it was crazy.....I feel like they've almost given up.....the loan was sent to the collection agency from the community college in 2009. I know I should've paid it off but have had hardships...we all do, Now I wanna get a financed for a car and would like to take this off my credit report before I apply because I know I'll get denied, I am going to apply for a secured credit card as well. I would like to negoitate and have this not reflect as bad on my credit report. how much should I offer them when I mail them a letter for debt settlement?

i have unsecured line of credit at 8100 past due 95 days. I have 2 other cc's with them at about 60 days, but focus on the one 95 first. I have been in contact with them every week or two to give them the same sob story how no assets, unemployed, rent went up etc. I was paying but than stopped due to hardships. They said chargeoff at around 6 months and can call to start setttlement at around 90 plus days. Well fast forward after hearing that over and over, now they are saying i won't qualify for settlement until 1 yr after last purchase which was in feb of 2012..WHAT IS THAT? is this just a trick, and if so not sure what this accomplishes on their end when i told them i could borrow some money after i move in oct and possibly arrange something. Has anyone had this happen, is this just a mindgame and why are they all the sudden changing everything when i can finally start negotiation? Do i have to wait to start this whole thing now until feb, i hardly think they will just sit back until than and do nothing. I really wanted to try to put this behind me, i was going to start it off at 90 and before chargeoff work towards a 10-20 percent settlement. Now i am panicking about this yr thing, they said i won't qualify until 1 yr (feb 2013) to even qualify for a settlement. Any thoughts or advice? I find it hard to believe if they know i cant make monthly payments they will wait that long, or why they would.

Hello, I am new to the debt settlement arena and was wondering if I could get some advice? My husband and I have several credit cards (two we are dealing with on the arbitration board) as well as quite a bit of medical debt. Most of them, if not all are in collection agency status. If we are able to settle with them via our tax refund...what is the best way to go about it? Do we call the collection agency? Original creditor? Do we ask for a particular department? Does it matter on the amount of debt? Credit cards range from $500 to $2000. Medical debt there's some smaller ($500) to several thousand. Thank you so much in advance!!!

Hi all. Long time lurker, first time poster. I've thus far been able to negotiate 2 settlements - WF and BOA. They both negotiated right before charge off @ 50% (3k and 1k settlements, respectively). The negotiations were relatively painless compared to the other creditors, and I was hoping you guys would be able to shed some light. 1) 8k Chase Business Card. Will charge off in 14 days (10/31). Called them twice - the first time I tried to negotiate and offered 40%. They rejected it and mailed me a letter. I called them again 1 month later and tried to negotiate; they came back with some new verbage claiming that "My account is not eligible to settle". I did some additional research and it appears that this issue does affect SOME Chase accounts. Perhaps it is due to some purchases I made before missing a payment? This was a business account and my business DID go under. My options now are to try to settle again, or wait until it's sold to a CA. If the latter option, my concern is that I have personal/business accounts at Chase. While the bulk of my finances are in a credit union, I do have some money in Chase. Do I bail or what? Any advice here is greatly appreciated. 2) Cap1 Sony Card. 4k balance. I called them last week and they offered to settle for the principal (3500). What are the odds of me being able to settle for less? I'm reading 50-75% on forums? This account no longer shows on my "account summary" page. 3) Cap1 Spark Business Card - 2.5k balance. No calls/discussions yet, this account still shows up on my "account summary" page. 4) Citi Universal Business - 8k balance. Charged off. H&H is trying to serve me and I messed up by not DV'ing (oops). I'm currently doing a ton of research while H&H is still trying to serve me but if anyone has any other ideas I'd love to hear them. Anyway, if someone can offer me some advice on my Cap1/Chase situation that would be great.

Can I add penalties to a Debt settlement letter that will make sure they remove bad reports from all 3 TransUnion -Experian - Equifax Example: if they fail to remove bad reports in 15days they have to pay me of each every day they fail after 15 days. They`ve have to pay penaltie to me of $300-1000 of each day that matchs the debt their trying to collect

If you get a call from these folks please do more research than I did. Your credit will be wrecked and nothing gets settled. Come to find out logue law was just the name being used by national debt management. Now I find out Kim Gordon is the owner and owned debt restructuring of America as well and changed names. Bruce Atherton was her partner and he went to prison over his wrongdoing with that company. This is a awful mess I am left with. Thanks to the person who called me an gave me the real info on what was going on with this. Logue law is in Georgia and the phone room is in Indiana with NO attorneys there at all.. Good luck and hope you can find a better way out of debt than I chose with logue law

I have heard that a good way to settle a debt would be by a check/cashiers check or money orders and put on the memo line “By cashing this you agree to delete all information from the credit bureau” has anyone done this or have any feedback. Thank you

but really it isn't. My stepdad has offered to help me pay a "lump sum" debt settlement amount with his credit card - i couldn't do it otherwise - given that it has 0% APR and we can then begin to pay that off together (I'm close to bankrupt after a divorce and moving back to the UK from the US with both my kids). Will the credit card companies - once a settlement is reached - accept a payment from someone else on my behalf? I am no longer in the country, after all. I'm just so thankful to have some help here and I'm hoping the answer is yes. If anyone can answer this, it might give us some more leverage going forward in sorting this mess out. Thank-you in advance.