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Debt Settlement Program Starting Tomorrow...what to expect???

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Anonymous
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Debt Settlement Program Starting Tomorrow...what to expect???

Hello everyone, I have been reading through these forums for quite some time and I am amazed with the openess of everyones comments. I feel very fortunate to have a collective wealth of knowledge look over this and was hoping to get any insights on my current situation.
 
To make a long story short, I have managed to bury myself with almost $70,000 in credit card debt. A very unfortunate event occured when I purchased my new home and it has been killing me every since. I did not want to file bankruptcy because I am only 25 and I am planning on getting married within the next few years. I have been able to pay around $1,500 a month towards credit cards consistently which usually cover a little more than the minimum payment. I was doing the math and even with getting interest lower this is going to take me anywhere around 8-10 years to pay this off especially with the planning of a wedding, etc.
 
So I decided to join a debt settlement program that allows me to pay $1075 a month for 36 months and it will get me out of debt by settlement. I have never been late on anything before but this month I have been advised by the company I decided to work with to stop paying the creditors. Does anyone know if the debt settlement companies send pfd's or are they just trying to settle and get their share? What are somethings that I should expect to happen to my credit in the next 3-5 years? Does anyone have any success stories about settling their debt? I am just trying to sleep good at night knowing that this could work and hopefully make me realize all the "what not to do's" once this is paid in full.
 
Also, are there any additional steps that I should take in my own hands even if the debt settlement company has negotiated a settlement?
 
Any help is much appreciated...my first debt settlement payment is going out tomorrow so wish me luck on this next chapter in my life...
Message 1 of 5
4 REPLIES 4
scramblingin2007
Established Contributor

Re: Debt Settlement Program Starting Tomorrow...what to expect???

Hello and welcome! I am concerned that you are going through a "debt company" as this will probably ruin your credit for quite a few years. You can probably just get out of this debt yourself without the "help" of a debt company. You say you have been paying a little over 1k a month, you are still going to be paying that amount with the debt company! My choice would be to just keep paying on time every month and not go with the debt company, at least you'll be paying on time and won't have any negative marks on your credit reports. Please think about this before you send in that payment tomorrow... this board and these great people can help you while keeping your credit scores healthy! P/S) you say that you're saving for a wedding, well you can certainly have a wonderful "small" wedding without all the frills and put that money into paying off your debt...
Message 2 of 5
Anonymous
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Re: Debt Settlement Program Starting Tomorrow...what to expect???

Believe me, I have thought long and hard on this decision and it seems as if its my only way out. I am saving above $400 a month by going this route and getting out of debt 5-10 years quicker than I can on my own. When I pay the $1,500 a month that barely gets me over the minimum payment and living has been a struggle with that. I have made all the sacrifices in life to cut down my expenses and sill see no way out. I dont want to file bankruptcy so I felt this would be a good alternative.
 
I appreciate your insight...thank you
Message 3 of 5
scramblingin2007
Established Contributor

Re: Debt Settlement Program Starting Tomorrow...what to expect???

I'm sorry sweetie, good luck with everything. You need to do what feels right for you!Smiley Happy
Message 4 of 5
Anonymous
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Re: Debt Settlement Program Starting Tomorrow...what to expect???

Thanks again for the words of wisdom...\
 
Does anyone have any exp. with a debt settlement program that they may be able to shed some light on? Or answer any other questions I have above?
Message 5 of 5
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