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  1. #1
    Join Date
    Mar 2007
    Posts
    17

    Default Debt Settlement Companies vs Doing It Yourself

    My question involves collection proceedings in the State of: Florida

    Are the debt settlement companies worth the fees?

    Or can I make similar arrangements with credit card companies?

    I would like to pursue working out new arrangements with the creditors but I cannot do this unless they ALL agree to what I think I can do. Or is this the advantage of turning it over to a debt settlement company.

    The one I have checked into is Accredited Financial Services, LLC.

    I owe about 40K with 8 creditors.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Debt Settlement Companies vs Doing It Yourself

    Debt settlement companies are a crapshoot. We have a ton of stories here along the lines of, "A debt settlement company told me to stop paying my bills, and I ended up getting sued." Or worse, "They told me to ignore a lawsuit, and I got a default judgment against me."

    You should note also that debt management is generally considered to be almost as hard on your credit as bankruptcy.

    If I were looking for credit counseling, I would probably start with the list of services approved by the bankruptcy courts.

  3. #3
    Join Date
    Sep 2008
    Posts
    6

    Default Re: Debt Settlement Companies vs Doing It Yourself

    I considered debt settlement, but was leary of them. A lot of them have very negative ratings with the BBB and I was afraid they'd take the $ and run. I am in the process of working out debt settlement with my creditors. BOA (I had 3 accounts with them) settle for 1/2 of what I owed. I am now working with Discover and getting nowhere fast. They will not budge. I'm also working with Citi and it looks like they may go for 1/2. Definitely do it yourself. There's no need to pay someone else to negotiate for you. It is emotionally draining, but at least you know where you stand unlike if you were working with a settlement company. They tell you to stop making payments and they don't offer a settlement until your savings account is built up. By then all the late payment and over the limit fees are stacking up. At least by doing it yourself YOU are in control. Best to you.

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