What is the different between consolidation company and debt free company like Creditsolutions.com.?
Question:
Companies like that are considered along the same likes of a bankruptcy to the credit bureaus. meaning that it will affect your credit score and rating for years to come. Are they charging 15% of 16,000($2400) or 15% of 9,800($1470)? It might be beneficial to weigh other options that you have available before deciding.
Alex Myers
Synergy Mortgage Group
(877)428-3328
Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.ht...
Basically what happens is they "allow" your creditors to starve for money ...until they've reached a point in which they want to offer a settlement.by law they (Creditsolutions) can't tell you not to pay your bills it's a liability. If you do pay them you screw yourself of a good settlement offer. If you don't pay them these companies are reporting late payments on your credit and charging late fees...A complete catch 22.
Meanwhile they charge you 15% of the total amount of debt as their fee. So if you are $20,000 in debt you are charged and additional $3000 for the service. They will ask you to set up a separate savings account to save for settlement offers that become available while still paying your monthly fee.
In some cases if you have a bankcard like Wells Fargo and you also have a bank account with them they will ask you to close the account because during tough negotiations WF may "freeze" your bank account and you can't get your own money.
In some cities and states creditors will sue debtors in which you will have to appear in court and a judgment may be placed against you. This also shows "bad" on your credit. Meanwhile you are still enrolled in the program and they are still charging you the fees.
If you still want to go with this service please take note that you can ask at anytime to remove a creditor that will usually lower your fee, but then you are left to handle that creditor yourself.
If you are annoyed by the harassing calls...Credit solutions cannot stop creditors from contacting you period. Although they may appear to be able to..creditors by law have the right to contact you there is not limit on how much...just when not to b4 9a not after 9p---> unsure if these times are still correct (but you get the point).
If I were you...I would pick up a book at Barnes and Nobles
The Idiots guide to Beating Debt or Credit repair kit for Dummies...these are good basic resources. You can settle the debt yourself. and have late charges not show up if you negotiate it...I wouldn't recommend creditsolutions.com You will put yourself in more debt.
Your debt is $16,000 you pay CS $2400 to settle it. Keep in mind that the 9,800 is just an estimate there is not guarantee that they will settle for this amount could be more or less and you may be obligated to pay the full amount as part of the settlement offer. Sometimes CS can negotiate payment terms, but not always. (Ex you just started the program 2 months ago they settle for 9800 and want the payment in full..thats great if you have 10,000 laying around but if you don't then you miss the offer)
Email me if you have any questions...
More Related Questions & Answers...