Comments on: Reasons not to file bankruptcy or settle your debts http://debtprison.net/wordpress/13/bankruptcy-or-debt-settlement/ Financial Opinion.... with a hint of Free Market Politics Wed, 18 Nov 2009 21:59:23 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Debt Prison http://debtprison.net/wordpress/13/bankruptcy-or-debt-settlement/comment-page-1/#comment-10322 Debt Prison Wed, 04 Nov 2009 23:02:33 +0000 http://debtprison.net/wordpress/?p=13#comment-10322 The higher APR I am referring to is the interest rate you will get on FUTURE loans if your debt has been settled or if you file bankruptcy. Sorry, but I still don't see how using a debt settlement company is good, unless the person in debt does not understand how the game works... and would rather outsource the negotiations for a fee. Here's a real story from one of my readers who has dealt with two different debt settlement companies, read for yourself. http://debtprison.net/wordpress/134/tell-debt-settlement-cos-to-kiss-your-ass/ The higher APR I am referring to is the interest rate you will get on FUTURE loans if your debt has been settled or if you file bankruptcy. Sorry, but I still don’t see how using a debt settlement company is good, unless the person in debt does not understand how the game works… and would rather outsource the negotiations for a fee.

Here’s a real story from one of my readers who has dealt with two different debt settlement companies, read for yourself.

http://debtprison.net/wordpress/134/tell-debt-settlement-cos-to-kiss-your-ass/

]]> By: Tatiana http://debtprison.net/wordpress/13/bankruptcy-or-debt-settlement/comment-page-1/#comment-10317 Tatiana Wed, 04 Nov 2009 16:24:27 +0000 http://debtprison.net/wordpress/?p=13#comment-10317 well first of all, if your APR already went up to 32%, then how can you be talking about having a HIGHER APR in the future because of settlement on your credit? You are already at the highest. Second, the reason these companies set up an escrow account for you that should be FDIC secured is so your funds are there each month, accumulating, and nobody can touch them. All legitimate debt settlement companies will make sure that you have access to that account and can withdraw funds any time you want if you decide to cancel.If this option has not been introduced to you, then maybe you should have done a better research when choosing a company, cause you cant hold the entire industry responsible because YOU made a bad choice. Scammers are everywhere, but it is YOUR responsibility to find a right company that you can trust instead of blaming it on the entire industry if you get burned. If you go to Walmart and come accross a rude cashier, will you say that ALL Walmart stores suck? No, cause thats not reasonable. Same here...If you got a letter in the mail from the bank saying they prefer to deal with you directly and won't work with a third party, please understand that they are trying to discourage you and people like you because they are losing money on settlements and its nothing but a scare tactic. Banks KNOW that you are emotionally attached to your debt and you feel responsible for it, thats why they try their best to lead you into believing that your only option is do-it-yourself approach, cause you are more likely to take the offer that might not be the best in your case, no matter how tough you think you are. Its a multibillion dollar industry, those folks know what they are doing. If they didnt, they would have gone bankrupt. So if they made you believe that your only option is to work with them directly and you quit the program after several motnhs of making payments--it is the proof of how good they are. Even if it IS a bank's policy not to work with third parties, when the account charges off, they will sell it to collector who will work with anyone that pays them money. And lets face it, you might be sitting there thinking how you dont want your accounts to go to collections, oh well, some of them will, cause if you had the money to pay all of them off in 3-6 motnhs, you would never get behind on your bills in the first place, so these companies are doing exatcly what is logical---if one bank refuses to work with them right now, they will offer the money to the one that will, and settle the first one when negotiations can be made. Now companies that know what they are doing and have good arbitrators dont have to wait till you accumulate 50% of what you owe, they will make arrangements with the bank in several installemnts, and it does not have to be 50% either, most of the time they are able to settle with some creditors for less, some for more, when they average it out, it comes out to what they quoted you. If you are complaining about your credit score going down---what do you need it for right now? to get yourself further in debt??? or to get more credit crads in the future, so you could end up in the same situation again??? Yeah, yeah, yeah, right now you might say that in the future the economy will get better, you will have a job, blah blah blah, but could you see THIS one coming? no! so how will you know that in the future it will be all smooth? wishful thinking is good for you, but you also have to be realistic and think of all possible options. If you will settle them yourself, they will still be settled, your credit score will still drop for missing payments when you settle on your own, but it will go up again once the accounts are paid off, but i guess when you are with a company you just have some people to blaim it on to make yourself feel better, huh? well first of all, if your APR already went up to 32%, then how can you be talking about having a HIGHER APR in the future because of settlement on your credit? You are already at the highest. Second, the reason these companies set up an escrow account for you that should be FDIC secured is so your funds are there each month, accumulating, and nobody can touch them. All legitimate debt settlement companies will make sure that you have access to that account and can withdraw funds any time you want if you decide to cancel.If this option has not been introduced to you, then maybe you should have done a better research when choosing a company, cause you cant hold the entire industry responsible because YOU made a bad choice. Scammers are everywhere, but it is YOUR responsibility to find a right company that you can trust instead of blaming it on the entire industry if you get burned. If you go to Walmart and come accross a rude cashier, will you say that ALL Walmart stores suck? No, cause thats not reasonable. Same here…If you got a letter in the mail from the bank saying they prefer to deal with you directly and won’t work with a third party, please understand that they are trying to discourage you and people like you because they are losing money on settlements and its nothing but a scare tactic. Banks KNOW that you are emotionally attached to your debt and you feel responsible for it, thats why they try their best to lead you into believing that your only option is do-it-yourself approach, cause you are more likely to take the offer that might not be the best in your case, no matter how tough you think you are. Its a multibillion dollar industry, those folks know what they are doing. If they didnt, they would have gone bankrupt. So if they made you believe that your only option is to work with them directly and you quit the program after several motnhs of making payments–it is the proof of how good they are. Even if it IS a bank’s policy not to work with third parties, when the account charges off, they will sell it to collector who will work with anyone that pays them money. And lets face it, you might be sitting there thinking how you dont want your accounts to go to collections, oh well, some of them will, cause if you had the money to pay all of them off in 3-6 motnhs, you would never get behind on your bills in the first place, so these companies are doing exatcly what is logical—if one bank refuses to work with them right now, they will offer the money to the one that will, and settle the first one when negotiations can be made. Now companies that know what they are doing and have good arbitrators dont have to wait till you accumulate 50% of what you owe, they will make arrangements with the bank in several installemnts, and it does not have to be 50% either, most of the time they are able to settle with some creditors for less, some for more, when they average it out, it comes out to what they quoted you.
If you are complaining about your credit score going down—what do you need it for right now? to get yourself further in debt??? or to get more credit crads in the future, so you could end up in the same situation again??? Yeah, yeah, yeah, right now you might say that in the future the economy will get better, you will have a job, blah blah blah, but could you see THIS one coming? no! so how will you know that in the future it will be all smooth? wishful thinking is good for you, but you also have to be realistic and think of all possible options. If you will settle them yourself, they will still be settled, your credit score will still drop for missing payments when you settle on your own, but it will go up again once the accounts are paid off, but i guess when you are with a company you just have some people to blaim it on to make yourself feel better, huh?

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