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My debt is out of control... need help!

Posted on: 12th Aug, 2009 02:49 pm
My debt is out of control


My wife and I have been supporting ourselves with our credit cards. I lost my job in July and she had her hours cut back. We are getting calls and am worried that we will get taken to court.

Is there a quick solution for this?

:?: :cry: :?:
There are no quick solutions. If your credit card minimums and interest rates have risen dramatically and you aren't quite ready to jump into bankruptcy, I have an alternative.

It is called debt resolution. It differs from debt settlement in that it the settlement of disputed debt. Some of the benefits are that you will have no tax obligations relating to your settled debt and creditors must stop contacting you upon the attorney first contacting them.


Let me know if you wold like me to pass along more info regarding this.

[Promotional text deleted as per forum rules. Thanks.]
Posted on: 12th Aug, 2009 04:23 pm
Hi iriedragon,

I can understand that you are in a tough situation. You may contact the debt settlement companies and check if they can negotiate about your debts with your creditor or not. They will negotiate with your creditor on your behalf and help you in getting a repayment plan so that you can pay off the debts.

Thanks
Posted on: 13th Aug, 2009 01:36 am
Thanks people. I see two words that are different, is there a difference between debt settlement and debt resolution? Which one works works best for the least amount of up front cost?

:?
Posted on: 17th Aug, 2009 01:28 pm
Yes there is... and that is a good question Irie.

I believe that debt settlement is something that one can do with out legal guidance.

I know for a fact that you need a lawyer to DISPUTE debt.
Posted on: 17th Aug, 2009 03:42 pm
Hi Guest,

Debt settlement is also known as debt negotiation. In the process of debt settlement, you'll be able to negotiate and reduce the outstanding debt by 40-60%. Your creditor will forgive the deficient debt and help you to get out of debt faster. Debt resolution also refers to debt settlement. As a debtor you can make your own arrangements is order to come out of debt. Or else, you can hire a lawyer who can help you in negotiating with your creditor. You can also settle your debts through companies that offer such services.

Thanks
Posted on: 17th Aug, 2009 10:05 pm
if you cannot pay your bills, i don't know how you'll be able to justify to yourself the payment of a sum of money to a third party firm that will "help" you to pay those bills. in a case such as you describe, it appears to me that your best bet is truly to file a bankruptcy petition. what that entails at this point is sitting down with a reputable attorney whose practice includes bankruptcy and determining with that person what the best course of action is.

though it's going to cause you much consternation and will bring about a severe dip in your credit scores, it's not the end of the world. bankrupty was designed in this country to give people a fresh start, and that's how you ought to look at it. it's not some evil monster about to destroy your life, but a reasonable, legal way to go about eliminating indebtedness that's about to eat you alive and allow you to go about your life thereafter.
if you choose to file for bankruptcy, you'll want to also devise a plan for re-establishing your credit-worthiness later on in the event you wish to obtain future credit.
Posted on: 18th Aug, 2009 08:16 am
I disagree with bankruptcy. That impacts your life for a long time. And you have to pay for a lawyer anyway. So why not get some credit counseling, or at least talk to the creditors and see what they can do?
Posted on: 18th Aug, 2009 02:36 pm
i'll buy that theory keith...but consumer credit counseling (which is an actual name of a firm) is, in my experience, the best and most user-friendly service out there. paying exorbitant sums of money to "for-profit" counseling or to a law firm is not productive in my opinion.
Posted on: 19th Aug, 2009 08:26 am
Thanks for your help everyone!
Posted on: 19th Aug, 2009 02:17 pm
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