Debt Consolidation Question

[dragon11682]

Hi. I live in New Jersey. I have a debt on my credit cards. Five months ago, I gave debt consolitation a try. I am paying them a service fee, while they try to settle my debt amount. They are supposed to reduce my debt 40%-60% of the total amount. This month is the last month in which I have to wait for a settlement. But in the mean time, my creditor is using a lawyer to collect money for the debt. They have been calling me everyday at least 2 times a day. The lawyer from my creditor keeps telling me that my debt consolidation company is not going to do anything for us. The lawyer told me that I have to start paying, or they will put a lien on my house for not paying. My debt consolidation company told me since the debt is not secure, the creditor can not put a lien on my house. I would like to know what I can do about this situation, and which one is telling me the truth. My debt consolidation company or my creditor's lawyer? Any help would be appreciated. Thanks in advance.

 

[Prpledrms23]

From what I've previously read on several boards...stop with the debt consolidation company...they really are not going to do anything for you and may even screw up your credit even more. However, others might have more information.

 

[kopes]

I don't want to sound completely negative, but I had a horrible experience with a debt consolidation place. They did nothing for me and it was only after one of the creditors sent me arbitration papers did they do anything in terms of a settlement. They called me three weeks after I got the arbitration papers and told me they could settle for 77% of the debt. Of course by then, with interest and fees that had been tacked on, they were really saying they could settle for right around the orginal amount. They also told me that what I was paying them would need to increase in order to settle this. I told them they could forget it and dropped them. They keep claiming I get a refund but I haven't seen anything yet. They screwed things up way more than I ever could have.

Quit paying them and try to fix this yourself. They can't do anything you can't do and it will just cost you more money in the end.

 

[Ladynred]

Agreed, these companies are BAD NEWS and will cost you more in money, your credit, and will not help you in terms of lawsuits - in fact, far too many people who go with these companies are driven to bankruptcy anyway, sometimes sooner !

The creditor cannot do anything to put a lien on your home UNLESS they sue you FIRST and win a judgment against you. Once they have a judgment, they CAN place a lien on your property and it makes NO difference that the debt is unsecured debt !! The debt company is LYING to you (gee..now that's a real stretch.....).

There is NOTHING that these people can do for you that you cannot do for yourself and save yourself money in the process. Dump them. There are many sources that can help you w/o paying them to further ruin your credit and get you sued !