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Hi, Thanks again to everyone here who are so helpful. OK, I'm just starting debt settlement and I was just told I needed all of my unsecured debts added to my debt settlement, which I understand and I got good advice on my other post.

Now to my question. At this time I'm still financing a vehicle which I'm current right now and I have it in a budget I can afford. Is having a 21,000 secured debt going to affect my settlement in regards to settling an $80,000 unsecured debt settlement? Do the creditors look at someone who is paying a secured debt and not offer the best settlements for unsecured debts (credit cards debts)? If it is recommended I turn it in, I will get no money out of it and will not be able to buy a car for my family.


I don't think that a secured loan will affect your debt settlement prospect because after enrolling for the settlement program all sorts of negotiation will be done by the settlement company on your behalf.

But I'm not quite sure about it. Other members can cast some light on it.

Sub: #1 posted on Tue, 07/15/2008 - 10:04

phoenix phoenix
(Posts: 1445 | Credits: 275.44)

That should have no affect on your settlement. You have to have a vehicle to get to work and the creditors know that.

Sub: #2 posted on Tue, 07/15/2008 - 19:32

mobile0311 mobile0311
(Posts: 1817 | Credits: 104.57)

You can enter unsecured debt into settlement without affecting car and home loans. If you are doing settlement I would enter all your credit card and unsecured debt into the program.

Sub: #3 posted on Tue, 07/15/2008 - 19:44

Moderators Cum Industry Expert
(Posts: 1078 | Credits: 137.97)

Having secured debts shouldn't affect your ability to negotiate with your unsecured creditors. I haven't done debt management or settlement, but in all of my conversations with my creditors, I have told them that I have to pay my secured debt and living expenses first. Most have said "of course" or something along those lines. Even in a bankruptcy, as long as you can continue to make your payments, your secured debt is not affected, and only your unsecured debt is discharged. So I think the unsecured creditors are used to their status as last in line after secured debt.

Sub: #4 posted on Tue, 07/15/2008 - 23:07

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

Thanks for the input everyone. The answers are pretty much what I suspected.

Sub: #5 posted on Thu, 07/17/2008 - 22:22


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