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Credit counseling vs debt settlement.

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Briefly, I have gotten over my head with my cards and can no longer afford the monthly minimum payments.

I contacted CCCS to work out a plan, but in effect the plan would only lower my monthly payments by $40, making it extremely hard to get by.

I saw an ad on the internet for startovertoday.com who offer to settle the debt.

The other alternative is bankruptcy. I have no assets by the way.

Anyway, my question - is debt settlement legitimate? Which is worse as far as future credit goes? How do I know startovertoday is an honest company? Any advice.

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  • 2 weeks later...

Just like credit repair, there is nothing that a debt settlement company can do that you cannot do yourself.

With the exception of taking your money.

A lot of debt settlement companies are full of [EXPLETIVE DELETED].

The debt settlement forum on this board has a few sad stories of people who got ripped off by such outfits.

The real question is what kind of financial situation are you in?

Is it that you are having a hard time paying bills?

Are many of your bills behind?

Or are most of your bills already in collections or have been charged off?

It is difficult to arrange a debt settlement when you still have an open account.

Creditors are open to making arrangements. Like closing your revolving account and rearranging your payments. That isn't much of a solution but it will buy you time until you have the resources to pay off that debt.

For other situations, you may want to browse through the Debt Settlement forum of this board. It is loaded with posts and threads of people who were in your exact situation...

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