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Is settling debt right for me?


mom23pac
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I have about 20,000 in credit card debt. I am paying an enormous amount of money trying to pay these cards down, but am not succeeding to any noticable degree. I am current on all but have had a problem with B of A and one of my CC's continues to escalate as they say I am not making the minimum payment. I have spent several hours trying to resolve this issue, but they have an internal problem in which online banking does not communicate with the administrators. Regardless, it has made me realize I will never get out of debt this way (paying 100 and 200 above and beyond the minimum payment). Will CC companies settle with me if I am not behind in my payments? Again, only the one account is delinquent. Would meeting with CCCS be to my advantage? I am so short on time, as I am working two jobs to keep up with payments. Please advise.

mom23

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I would look into debt consolidation at this point, before you are delinquent. You should call and get qualified, I called Take Charge America and they were very nice, they take your information and tell you how the program works. There is a fee associated with their service but they generally call your creditors, lower your interest and set one payment for all your creditors that you pay directly to them. They usually try to resolve your credit cards in three to five years. You have nothing to lose and the service is free. After I talked to them they sent me a free report of my information and budgeting software for my computer.

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Wow...Take Charge America, huh? Yet another debt fixer. In general, all "debt management plans" (DMPs) are scams. The ones that are less dishonest than the others take your money (along with a fee), sit on it for awhile (so they earn interest), send less than the full payment to your creditors (who mark you as late). If all of your creditors happen to be clients of theirs (they are reallly collection agencies in disquise), you may eventually pay off your debts. If one of your creditors don't play along, you get sued.

Plus, along the way you get to have your credit reports marked "in credit counselling" which is a really big ding, and, you lose the protection of the FCRA because it doesn't apply to people using third parties to handle their debt.

My suggestion would be to sit down yourself...figure out a budget you can live with...divide up what you've got to send your CCs. Call them. Ask for the "hardship program". Tell them what you can afford. See where that gets you.

No debt fixer has a magic wand that makes CCs roll over and play nice. You can accomplish just as much yourself and you won't give up your rights in doing it.

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