How to select a good debt settlement company?
Let me tell you guys my situation. Me and my wife have about 60K in debt. It was all originated from the 0% balance transfer. I started to cash those 0% apr balance transfer checks into my checking account and use them un-wisely one year ago. I thought I could pay them off before the 0% APR ends but I lost my job at the end of last year. I don't think I will be able to pay anymore.
I did some research on my own and found 1 good debt settlement company under the the so called "Better Business Bureau"?. It's called the "Solve Debts". Has anyone have any experience with this company?
When they explained the procedure to me, I do realize that it takes about 6 months for them to negotiate with the creditor or the collection agencies. And I have to stop paying any of them to show financial hardship. They usually want to wait until the creditors send those debts to collection agencies so that they can negotiate on the "already-reduced-amount". However, during that 6 months, the interest and late fees add up. And there is no guarantee that the creditors or collection agencies will settle for the less amount. If they don't settle, you will owe a lot more than what you owed before. 2nd, if they accept the settlement and you now have a reduced amount (50%) to be paid off in 3 years. During that 3 years of times, can they stil sue you and take money from wages? 3rd, what about the tax consequence? If I only need to pay 30K of my 60K debt, will that 30K taken as income at the end of the year?
I think I have enough questions. Thank you for spending the times to help me out.