In August of 2006, I contacted Credit Solutions to help me settle my credit cards for less than I owed. They claimed that I could settle for 40% of what I owed. At the time, I had about $42,000 in credit card debt. I had to pay Credit Solutions a total of $3,786 in monthly installments for them to do this. I refinanced my house and added in enough money to pay the credit cards off according to what Credit Solutions told me. I told them that I had the money to settle, but for months, they did nothing to settle my accounts. Also, once I signed up with them, they told me to stop paying my monthly payments on my credit cards. Big mistake.... this only ruins your credit history & scores!!
In March 2007, I started getting calls from a debt collector for one of my cards threatening to garnish my wages, put a lien on my house and put a hold on my bank account. I called Credit Solutions to tell them about this and they came back with a settlement that was over 70% of what I owed, not the 40% that they told me they would settle at. The debt collector kept calling and threatening me, so I contacted a bankruptcy lawyer to see just what he could do to me. I found out a lot of things that the debt collector was threatening me with that he legally could not do without going thru the courts. The lawyer said it would take them at least 30 days to get anything approved by the courts. The lawyer suggested I meet with him and see what my situation was. I never thought I would ever have to file bk as I was always able to handle my debt. But, with Credit Solutions doing nothing for me but taking my money and destroying my credit history, I decided bk was my only option. I felt a huge weight lifted off me and I no longer have to struggle to make my payments on my house and other bills. I did not lose any of my assets and just had to reaffirm my mortgage with the bank (I filed Chapter 7).
I never thought in a million years that I would claim bankruptcy as I was always able to handle my debt and make my payments. I know it's any easy way out, but I did try to come to a settlement and I ended up a lot worse than if I had just done the bankruptcy straight off. My debt started growing in 2000 when I was laid off from my job and it took 5 months to find another one in my field. I also had a string of bad roommates that ended up costing me more for them to live with me than if I had just toughed it out by myself. I currently have 2 lawsuits against past roommates that total close to $7,000, but I don't think I will ever see any of that money.
One good thing about this is I no longer had any credit cards, so you really think about purchases before you make them as you have to pay for everything in cash, and I am really handling my money better now. I was able to get a credit card for a gas station, but that is it, and that is paid off every month.
One thing I would suggest is for you to contact your credit cards and see if they will reduce your interest rate. Also, see if they would be willing to settle for less than what you owe on your own before working with any debt reduction place.
Kris
Message Edited by hisser64 on
02-28-2008 08:46 AMMessage Edited by hisser64 on
02-28-2008 08:47 AMMessage Edited by hisser64 on
02-28-2008 08:50 AM