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KAT MOMMY

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Hey Guys,

 

Just trying to find out some info on debt consolidation programs. What is the difference between having my attorney settle it vs a credit consolidation company settle it? It is obvious the attorney fees will be higher but would it be more effective if he were to handle it or does that even matter.

 

My debt is about 5K and the guy said it should be about 12 months and I will be in the clear/

 

Anyone know any additional info regarding this or maybe a company that works wonders???

 

Thanks

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Well debt consolidation works by combining all your debts into one payment to the company each month where they disperse the money appropiately. They can negociate lower interest rates and even getting the debt itself lowered considerably.

 

5000. is not that much, luckily for you.

 

I would stay away from the attorneys. Their fees alone will put you back in debt.

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I would suggest that you call a number that I have for a company called "protect your rights". They charge about $300 but they work miracles for you. A buddy of mine called this number, made an appointment with them, paid the fee and watched his credit score go from the low 500's to high 600's. All of this to include them CLEARING an $11,000+ debt off his record... Gone *poof*.

 

I will be meeting with them next week actually to see what they can bring my high 600 score up to. They say at least high 700's.

 

They do this by writing letters to collectors, loan companies that you have used and credit card companies. If you have a car payment and have been late one or more times, they write a letter requesting them to say that all your payments were on time. It really works. Let me know if you are interested.

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I would stay away from attorneys for a 5k debt. That's not much relatively speaking.

 

On another note, we have these people that just never end up paying back their debts. That drives me nuts...because the people who do pay back their debts are the ones that end up paying for it.

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yea! Is it legal though? I know some people that actually went through this and it only lasted for about 60 days and then it reappeared on their file. I am about mid 600's right now with that debt. So it's not so much of the score it's the negative ratings

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I used a credit consolidation service and I am sorry I did! They took my money and seldom paid my creditors. My credit was shot after that. And they were a well known company in our area! I then went to an attorney and while it was expensive (but not thatexpensive), it was done correctly and my good credit was restored. Attorneys can work miracles for your credit rating which the debt consolidators can't.

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My suggestion is be patient and pay the debt of 5k its not very much at all. If you are responsible and pay it back in incriments that are the same on a consitent basis that will reflect on your score. Once youve cleared the debt stay away from as much credit as possible. The less lines you have open the higher your score will go. Paying all your bills on time will help. If you want to strengthen your credit you can open a line from one lender and not use it. The more available credit you have at the close of a statement the higher your score will go and the higher available credit you will have. Good Luck, 5k is not much. If it helps some of these kids fresh out of lawu school have 80- 100 k in debt from loans.

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5k really isn't that much. I wouldn't go for a settlement with a reduced amount if I were you. It will show on your credit report as settled. However, you can talk to the credit card company, or the collection agency and set up payments to PAY IN FULL. That way when you're done, your credit report will reflect that you did in fact, pay in full.

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yea! Is it legal though? I know some people that actually went through this and it only lasted for about 60 days and then it reappeared on their file. I am about mid 600's right now with that debt. So it's not so much of the score it's the negative ratings

 

Yeah it is perfectly legal. They write to the 3 major credit reporting agencies and have them fix it for you via phone call or letter. It is the decision of your debtors to help you not an agency hacking into the system. It really does work from what my friend has told me.

 

I also got conformation from an employee that works for them that it is 100% legal.

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For 5,000, neither one is really a good option. The money you paid to them could be money used to pay down the debt. And really.. what good is it if you pay them 500 to save you 500? Either way.. you are still going to pay the full amount.

 

Also.. be really skeptical about companies that say they can lower your debt. What they really do is skip payments so you go into default and then negotiate with the lender for a reduced settlement. It destroys your credit. You would be better off calling the places you owe one by one and settling with them yourself.

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In what form is the debt in?, I assume a couple credit cards?... I would avoid the Agency or lawyer. Take your debt to a bank, you should be able to get some sort of personal loan, put a lien up on your vehicle if you own it. I did that to buy another vehicle when I was 19yrs old. You'll prob pay more than the 6-8%, but it should be noticeably lower than the credit cards rates and repayment schedules.

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I work in banking and vast experience with credit issues from many clients through the years. In order to give you good advice I need to know what type of credit you're consolidating? Credit cards, collections, charge offs, derogatory history, late payments, and so forth.

 

I've noticed everyone here thinks a consuner credit counceling service (CCCS) is the best way to go but the credit agencies report it as cosumer counceling and it lowers your credit with potential lenders since it's a sign if credit distress. So what ever you do don't use any type of paid service to settle your issues. They will only take your money and you'll eventually end up hiring an attorney.

 

Attorneys on the other hand may be a little bit more expensive but they steer you clear of any negative or derogatory credit reprecussions and are actually authorized by law to force these companies to accept fair settlement terms. Plus when these creditors become too stuborn to cooperate then a judge will force them to do so and may asses damages for failure to do so. This is why an attorney is a lot better at this game then a CCCS company.

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Thanks FortunateOne-I have a personal attorney that deals with this type of issues too. Most of the debt is from credit cards, cell phones and a few charge off accounts. Everyone that I have asked here at my job is giving me the same feedback to hire an attorney or either get a loan from the bank.

 

I am going to look into it all and see what the best option is. But with the economy the way it is which bank would be the best choice?

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