has anyone settled their accounts with creditors without using a debt settlement company?
did the creditors settled? could u give me tips on how to settle with them without using a debt settlement company. approximately what is the percentage they are willing to settle?
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December 17th, 2009 at 3:59 am
Yep. I settled 3 accounts several years ago.
How much they’re willing to settle for can depend on the company and how old the delinquent debt is.
One I settled for 50% off, the other two were about 20% off the balance due.
If your accounts are past due and close to charge off or have been charged off and in collections, ask them for a settlement offer. They’d rather get some than none.
You can either pay it off in one lump sum or over a 3 month period.
Get an agreement in writing before you send them any money. Also try to get them to agree to delete the tradeline from your credit reports as part of your settlement.
December 17th, 2009 at 4:05 am
Many debt settlement companies that have been shut down reported that less than 2% of their clients completed their debt settlement program successfully. Compare that amount to the over 40% of debt management plan clients that complete repayment in full of all their accounts.
If all of your accounts are in collections, then a debt management plan is not for you. However, a free credit counseling session may still be beneficial.
December 17th, 2009 at 4:08 am
in my opinion, they are useless….i tried one of the biggest ones out there. They say they can settle for 40% of the balance owed but then they take a 15% fee for the entire amount you have enrolled so add that 15% back on to 40% and you are only savin 45%.
I ended up still filing bankruptcy after trying one of these places for a year. My lawyer even told me that many bankrutpcy lawyers will settle the amounts for less and for far less money.
See a reputable bankruptcy lawyer in your area and talk to them. Bankruptcy is not the end of the road. I am already getting offers for credit (not taking them…I learned my lesson). So it is a fresh start.
December 17th, 2009 at 4:11 am
Please consider what your ultimate goal is before doing anything. Is your goal is to pay your debt so the collection calls and legal action stop? Are you simply in a better financial situation than you were previously and now able to resolve past mistakes? Are you attempting to improve your credit report and score for some future purchase? I ask because the course of action I would recommend depends on your ultimate goal, in my opinion. However, to answer your question as posted: I have not used a debt settlement company. You can do it yourself. Please, consider paying the debts in full but negotiating a deletion in return. This will look better on your report in the long run. Feel free to email me with any additional questions.