debt settlement companies

[shadyfoot]

I am considering utilizing a debt settlement company. I have a little over 100K in personal CC debt and my income is plunging fast in this economy. I don't want to be forced into bankruptcy and would like to come up with a plan. Has anyone out there used one of these companies?

[arthurb999]

what did you spend 100k on?

[creditcardfree]

Don't use them. List your income and expenses here and we'll help you come up with a plan that you can work with. I'd spend more time looking for ways to cut expenses and bring in additional income than looking at debt settlement companies. They charge you fees. You will need every penny to pay off $100K.

[swaymonae]

I used one a few years back.. everything they do, you can do yourself.. They also charge you a fee, and it will be listed on your credit report that you used that service, so not matter what it will hurt your credit...

You can call and negotiate your APR's & minimums directly with your credit card companies,... sometimes you have to ask for a manager to get anything accomplished.. and sometimes you need a manager's manager.. if you're not incredibly concerned with your FICO right now, you can negotiate a settlement amount. I've gotten away with only paying 50% of what I owe, but it will state on your credit report that a settlement was reached... and that you did not pay the amount in full..

FICO's aren't as important right now as they were a year ago.. I say either make some calls, see what you can do about lowering the interest rates, and if it's still hurting you.. make a deal!

[snafu]

20/20 reported on these companies and it was not favorable. Many are sleazy, check with BBB before contact. There are some not-for-profit Orderly Payment of Debt counsellors usually sponsored by State Gov't who do not charge fees.