debt free company

[johns3060]

Are the company's that claim they can rid you of your credit card bills legitimate? , i've been seriously looking at one that is registered with the BBB. Can a lawyer do the same as these companies can? I just don't want to get screwed up with an illegal business that can't do what they claim they can do when you sign up with them.

 

[Tracey]

Just how are they going to rid you of your debt? Debt consolidation via home equity loans? This turns your unsecured credit card debts into secured debts! Bad! Negotiation with credtors? Consumer Credit Counseling Services will do this for free (nearly). Why pay more?

If your payments are too high, consider Chapter 13 bankruptcy. This puts you on a court-ordered 3-5 year repayment plan and may discharge your credit card debts entirely. The credit card companies can't charge you interest or send you to collections or even phone you.

------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[johns3060]

The companies i mentioned claim they can settle with creditors on almost half the original debt. owed. They say the creditors are willing to do this because they are making a killing off intrest rates to be able to settle for half. Say 30,000 owed and only 15,000 to get out of debt after settlement and a percentage goes to the company for handling the negotiation. How real is this, i see several of them offering to do this type of work?

 

[Tracey]

Companies settle for .50 on the dollar when an account has gone into collections. They don't do it just ot be nice to you. Talk to CCCS and see what they can do for you first. Then compare it to what these settlement companies can do. Are they willing ot make you guarantees BEFORE you give them any money? I didn't think so. They'll take your money, then say 'We tried our best, but all we could only get you 90 cents on the dollar.'

The US government will do this for free if you file chapter 13. Think about it.

------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.