     Ric Sieck (Lakotah) | Monday, September 11, 2000 - 09:12 am 
I am wondering if anyone has used a Debt Negotiation company to reduce the debt and if they are really worth the fee. Also if they have been used how much were they able to reduce debt. |
| Shylock (Shylock) | Monday, September 11, 2000 - 04:08 pm
By debt negotiation company I assume you mean a company like Consumer Credit Counseling Service(CCCS).
Yes, they can do a lot on your behalf to reduce your overall debt, to lower payments, to have late charges waived and to have your interest rate lowered.
There is a price for all of this and the price is lousy credit. If you are in serious financial difficulties 9 times out of 10 bankruptcy (chapter 7) is the best option. |
| Amy Duncan (Amydd) | Monday, September 11, 2000 - 10:29 pm
Something else you might want to consider. My sister went to CCCS a couple of years ago, I did a chapter 7. She recently received a copy of her credit report (Experian I believe). Each account was notated that it was being handled through (I forget the exact wording here) a debt negotiation company and would show in good standing in 2009. Mind you she has another 2 years on the CCCS plan, then I guess 7 years for it to fall off. Mine on the other hand will be clean in 2008. I know CCCS told her that once she was off the plan her accounts would show in good standing again. I guess time will tell if this really happens. So far I think B/K is the way to go. I am pretty much debt free, with some new credit where as my sister is still struggling. She is unable/not allowed to get any new credit. As a matter of fact she recently had to buy a new car. It was very difficult for her to find financing, she had to get a note from CCCS saying she could get the car and she is paying a higher rate than I am on my car (purchased post b/k!!!). |
| Amy Duncan (Amydd) | Monday, September 11, 2000 - 10:35 pm
I almost forgot to answer your question. Most of her accounts the interest was either wiped out or at a very low rate (I think about 5% or so). Sears was the only one that would not reduce the interest at all!!!! Her monthly payments actually went up a little from the minimum monthly payments she was making, of course it is all or mostly going towards the balance now instead of interest. I don't believe any of the companys reduced the amount of debt at all, but I will double check with her. |
| Ric Sieck (Lakotah) | Thursday, September 14, 2000 - 06:40 am
Thanks for the responses. I have talked to a BK attorney and he said that there are other attorneys and companies that negotiate the debt with the CC companies and can reduce the amount of pay-off up to 60%. However to do that you must be able to pay cash. |
| Erik (Erik) | Thursday, September 14, 2000 - 09:07 am
What is your credit situation now? How much do you owe? When was your last payment? Are you current with all your payments with no lates, nothing charged-off, no collections?
You can even negotiate the debts yourself although some people don't feel comfortable doing so. If you are concerned about your credit you need to take your time and be very careful about how you go about doing it. |
