debt-management » Mortgage and Insurance

Ramifications of Debt Settlement

Feb 172011

I just entered into a non profit accreditedÂ debt management/credit counselingÂ programÂ and they took all my creditÂ cards,got the interest rates lowered and wrapped up into one payment a month, at whichÂ they will be paid off in 5 years.Â This obviously seems like the best thing, however, it is a hefty payment every month and my husband and I work on commission so there is no guarantee that we will be able to continue this for 5 years–only hope to…

Upon entering into the program, all but two c/c were current.Â However, the two that weren’t currentÂ were 6 months behind and about to charge offÂ so the credit card company recentlyÂ offered me a debt settlement of .30 on the dollar.Â This is tempting since I would save about $19,000.Â This would also make my debt management payment for the remainder cardsÂ a lot easier to handle for the next five years.

Does anyone know the ramifications of a debt settlement?Â I am getting mixed opinions.Â Some say I should definitely take the settlement offer since my credit has already taken the biggest hit–(being six months behind) and that my credit would actually improve a little since the debt to income ratio would improve.Â Â They are lookingÂ at itÂ Â as…Â Â I am going to be on debt management program for the other cards for five years and that will show on credit as a third party helping, which is like a soft bankruptcy and creditorsÂ look at it as you are in trouble!Â They saidÂ credit will not drastically improve till I complete theÂ program and cards are paid off in full anyway.They said by then, the settlement won’t effect me.

Others say, the settlement will effect me for 7-10 years and that creditors won’t want to lend me money for this time period sinceÂ I settled and didn’t pay in full.Â I know using a debt settlement company is a BIG no no since they charge you, and keep your money in a separate acct for months or even years till your creditors get paid.Â However, this would be a settlement with the bank and be paid all within 3 months. I do have to make up my mind very soon as the offer will be off the table since I am starting to make payments with debt managementÂ

I also am aware that I would have to pay taxes on the money I saved so I will be consulting my accountant about this soon.Â Depending on how that will affect me, that may make my decision…

I just want to know if I choose the settlement over the debt management for the two late cards vs.. Keeping all the cards on debt management for 5 years how that will compare and effect me in the end.Â Any advise would be great!

February 17, 2011
Posted by jedwan at 6:21 pm
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Rebuilding Credit
Cards, credit, debt, debt-management, debt-settlement, mind, money, settlement, show-on-credit, the-settlement, time

After Completing CCMP…

Nov 032010

First of all, I would like to thank this community for all the things I have learned about credit. Even though I am just a lurker here, I’ve learned a lot from all your experiences.

I started on debt management plan with Consolidated Credit last December 2007 and one of the credit cards I included was Value City Furniture. I have paid off that card last Feb. 2010 and I completed the DMP last July 2010. I have been trying to dispute VCF regarding the Creditor Comments “Credit Counseling Charge” on my credit report on all bureaus but they always return verified and the same comments. I also tried to send them a GW letter to them and I am not sure if it did work but after my last dispute (2nd time), they took out the one 30 day late on this account but still it has the same comment.

My question is – should I just leave this since my credit report is all clean now (and my credit scores are now 700+) except for the said comment under this VCF card or should I call them directly and let them take that out since I am not under credit counseling anymore.

Thank you so much in advance!

November 3, 2010
Posted by jedwan at 1:51 pm
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Rebuilding Credit
account, card-or-should, consolidated, credit, credit-report, creditor, debt-management, Experiences, started-on-debt, value-city

Asset Acceptance Response to DV–what now?

Mar 192010

I bought a computer from Dell back in 2002.Â In 2004, I was behind on payments and started a debt management program with Care One Credit.Â In 2005, I made my final payment.Â Stupid me, I don’t have records going that far back, so I don’t have any info on what the balance should be, but I was able to get a statement from care one just stating the payments that had been made.Â A few weeks ago, I received a letter from a CA demanding $2500.Â I sent them a dv letter, which was answered by the following letter.Â So, my question is, what do I do now?Â Although I’m quite certain this was paid to the original creditor in 2005, I cannot exactly prove it.Â The principal that they are showing is the original purchase price of the computer, before I ever started making payments on it.Â Where they got the interest/fees, I don’t know.Â What’s next?

D E B TÂ Â V A L I D A T I O N

PRIOR/ORIGINAL CREDITOR:

DELL FINANCIAL SERVICESÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Open date: 9/5/02

12234 NORTH IH 35 BLDG A Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Last pymt date: 5/31/05

AUSTIN, TX 78753Â

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â

ORIGINAL ACCOUNT NUMBER: account number here

PRINCIPAL: $1289.33

INTEREST: $1167.96

P E R S O N A LÂ Â I N F O R M A T I O N

For Personal Assistance CallÂ Â Â Â Â Â Linda McDonald Toll Free: 877-234-3936 Ext: 8642Â

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â

linda mcdonald asset acceptance

March 19, 2010
Posted by jedwan at 2:47 pm
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Rebuilding Credit
account-number, balance-should, debt-management, dell, making-payments, north, payments, personal, purchase-price, Question, the-original

Is it worth it?

Mar 122010

Hi all. wish I would have known about it years ago. Had to learn the hard way through trial and error, now I see that much of whatÂ I slowly learned on my own about credit repair can be found in one faq on this board lol. ah well.

It’s been a slow process coming up from the sub 500′s back in 2005 to where I am now due to myÂ few yearsÂ of irrespossible debt management, of the errors I did make I’ve been somewhat successful with removal. Mostly just by asking nicely. Though IÂ wish I would have thought of PFD before :smileysad:

Brief summary of what I”m left with: AllÂ wereÂ PIF Â back in 2006

AugustÂ ’06Â - Verizon (dsl) – EXP/TU

Dec. ’06 – BofA Credit Card Charge off – All 3

July ’05 – Collection with a CA, late rent – TU

Nov. ’05 – Collection with the lovely CPA(credit protection Association) via Comcast – EXP

Mar ’06 – few 1×30′s and a 1×90 on a secured loan through my CU AlaskaUSAÂ Â - EQ

Of all of these, BofA is the big one I wish I could get somewhere with. I’ve searched for suggestions with how to deal with them and I’ve tried my approach, tried GW letters, their just stone cold. Any suggestions?

The CA with the late rent debt, I freakin’ hate them, HATE! I paid that, they said they would take it off if I contested. They didn’t so I called in an complained to them, 30 days later it came off, this was 2006. On 2/15/2010 poof the account shows up on TU. Originally the account was only ever on EXP, has never been on EQ and now waahhlaaa its on TU. I called…..evil. I mean, just lying up their hoohaa to me. “I don’t know how it got on there sir, we always report our accounts each month every month,Â you’ll have to call Transunion!” …….I mean really, come on. hahaha.

March 12, 2010
Posted by jedwan at 1:24 am
No Responses
Rebuilding Credit
account, Accounts, always-report, approach, Association, collection, Credit Card, debt-management, from-the-sub, later-it-came, learn-the-hard, slowly-learned

debt management

Feb 062010

Can being in a debt management affect your credit score or credit overall if you not late on any credit cards or just want to combine them into one to lower the payments or rates…..::smileywink:

February 6, 2010
Posted by admin at 7:06 pm
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Credit Cards
credit, Credit Score, credit-cards, debt-management, lower-the-payments, payments, score-or-credit

What to do about Citi/Home Depot?

Jan 312010

Hi everyone,

needing guidance. We had an account through Citi/Home Depot that was on a debt management plan. We were late on a couple payments soÂ we were sent to a CA. We tried to PFD the CAÂ but they would not accept our offers. So we contacted the DMP company to see if we could pay the CA through them. The DMP company actually got an agreement with Citi and we were back on the plan. We started to pay the extra again to the DMP company and I assumed (stupidly) that the extra was going to HD but apparently it hasn’t. I called the DMP company and they are looking into it but are not sure what happened, it shows a $0 balance with HD-which I know isn’t true. Just pulled the CR and it shows as a charge off now. We haven’t received a call from any CAs yet but I am assuming that’s coming now. Not sure what to do, hoping that the DMP company can work it out, but if not I’m not sure what to do. Would a PFD to Citi be the best plan? Should we try to deal with them directly before it gets sent to a CA? When we originally were sent to a CA, I did DV the CA just as initial thing and we were sent the records so obviously this is not disputable. Uggghh! I just want this taken care of! Any help would be appreciated!

January 31, 2010
Posted by jedwan at 5:39 pm
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Rebuilding Credit
account-through, before-it-gets, called-the-dmp, charge-off-now, citi, couple-payments, cr, debt management plan, debt-management, Extra, guidance, hd, home-depot, initial-thing, originally-were, records

do it yourself cc negotiations vs debt management

Jan 282010

I’ve listened to Dave Ramsey and he says not to do debt settlement companies because even if they are credible an reliable thatÂ it doesnt’ teach me how to negotiate with creditors and doesn’t address the problem.Â Ok I get that.

but I’ve cut expenses as much as I can and still running out of $$.Â so far no deliquincies or missed payments but it’s not looking good.Â

So should I stop paying all of my unsecured debt and set those payments asideÂ in a savings account (like debt settlement company would do)Â and then try to negotiate a settlement withÂ each cc as the savings account builds up or does anybody have some differtn advice?

January 28, 2010
Posted by jedwan at 4:01 pm
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Rebuilding Credit
account-builds, cc negotiations, cut-expenses, dave ramsey, debt settlement companies, debt-management, differtn-advice, how to negotiate with creditors, not-looking, problem, Savings, savings-account, settlement company, still-running, stop-paying, unsecured, unsecured-debt

Mortgage and Insurance

Ramifications of Debt Settlement

After Completing CCMP…

Asset Acceptance Response to DV–what now?

Is it worth it?

debt management

What to do about Citi/Home Depot?

do it yourself cc negotiations vs debt management

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