by April 11th, 2010. Filed under: Credit.
AIC fan asked:
I have 12k in credit card debt and 30k student loan. I hear that these places just make all your accounts go into default so they can settle for less. Seems like that would mess up your credit right?
Kansieo.com
I have 12k in credit card debt and 30k student loan. I hear that these places just make all your accounts go into default so they can settle for less. Seems like that would mess up your credit right?
Kansieo.com
Filed under: Credit
April 12th, 2010 at 9:46 am
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They are all scam’s. 100%. Just start goggling their names and you can read for your self.
April 13th, 2010 at 7:13 am
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Yes it messes up your credit, because that is that ONLY way creditors will work with out. Student loans cannot be settled for less, you will owe that money until the day you die, if necessary.
April 13th, 2010 at 1:04 pm
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Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court. Note: These places will not work with student loans.
April 14th, 2010 at 6:29 pm
student loan consolidation
Really just read this site and you won’t have any more problems. They have all the info and they have great links to trusted compaines.
Just search up whatever you need there.
April 16th, 2010 at 1:09 am
Kansieo.com
Unfortunately some unethical companies and agents are taking advantage of the fact that so many consumers are in serious financial trouble. Because of this, the term credit card debt consolidation is being abused, and is now being used to refer to both debt management and debt settlement. So, you must be sure of what you are getting into before you sign on the dotted line.
Debt management should be considered if you are barely able to make the minimum payment on your credit card account. If you opt for debt management, your card issuer will close your account and reduce your fees and/or the APR. This will have a marginally negative impact on your credit.
Debt settlement is a bit more risky. When you choose credit card debt settlement, you withhold payments from your credit card companies, intentionally defaulting on your account. Doing this will destroy your credit score, but it’s done with the hope that, at some point your credit card issuers will be willing to settle for much less than what you currently owe them.
Traditionally, credit card debt consolidation means acquiring one loan to pay off all of your other credit card debt. This is done for two reasons. First, this new loan will usually have an interest rate that is much lower than the interest rates on your existing credit card accounts. Secondly, once you consolidate your credit card debt, you only make one payment per month to your new lender, rather than multiple payments to a variety of different credit card issuers.