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I need some sound advice, as I am scared and desperate. Due to a job loss and being unable to sell a home - I find myself in $75,000 of unsecured credit card debt. I am current on all my bills, but am only able to make minimum payments each month. At this rate, I am scared that I will never get out of this mess! I am considering debt management as a solution, but need some advice from anyone that has gone through it. The idea of stopping payments on my credit cards to let them go into collections to then settle on them feels terrible.

I have been speaking with State Capital Financial and Clear One debt solutions. Both have different approaches and I feel confused as to which one is the better alternative.

If anyone has any advice whatsoever, I would truly appreciate it. I need to figure out a solution. This debt has taken over my life. THANKS

It sounds like you are actually talking about debt settlement, rather than debt management?

Sub: #1 posted on Thu, 08/07/2008 - 02:04

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

Its sounds like you might have debt settlement and debt management confused.

debt management7 Plan or dmp . Is administered by non-profit Consumer credit counseling agencies. It will get you one monthly payment close to around what you were paying before but at much lower APRs. These programs usually range from 5-7 years. It doesn`t affect your Fico score because your months payment are dispersed each month to the creditors by the counseling company.

Debt Settlement8 or debt negotiation is an hardship program and best for consumers that don't qualify for a debt management plan, can't continue paying minimum payments, and don't want to file bankruptcy. It will get you one monthly payment around half of what you were paying and get you out of debt in 3 years or less. It does normally hurt your credit because the creditors won`t negotiate unless the account are at least 90-120 day late or more and thus is only for people who are overextended and are already behind or about to be anyways.

Both Debt Management and Debt Settlement are good programs. It just depends on your budget to decide what is best for you.

Sub: #2 posted on Thu, 08/07/2008 - 02:53

mobile0311 mobile0311
(Posts: 1817 | Credits: 104.57)

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