Posted on
November 12, 2009
at
1:29 am
Hello - can enrollment in a debt consolidation program stop collection calls?
Posted on
November 12, 2009
at
1:32 am
can enrollment in a debt consolidation program stop collection calls?Debt consolidation program as in credit counseling or debt settlement?I don't know about the former, but debt settlement can reduce collection calls. Enrollment in a settlement program means that from the time that you sign up with them, the collection agency deals with them, and not you.
Posted on
November 12, 2009
at
1:40 am
I agree with Aurora, only the automatic stay (bankruptcy) can stop collection calls and activities. Speaking of debt consolidation, why does debt settlement work with collection agencies and not with the original creditors?
Posted on
November 12, 2009
at
1:47 am
Speaking of debt consolidation, why does debt settlement work with collection agencies and not with the original creditors?All creditors, of course, would like to get the full amount from the consumers - and not the settlement amount - but after 6 months (according to the law) they have to write off consumer accounts (bad debts). What happens to them? They go to collection agencies (which are probably owned by the bank/creditors as well).Collection agencies would rather collect something than nothing and so they work with either the consumer or the settlement company that represents him/her.
Posted on
November 12, 2009
at
1:50 am
Yes debt consolidation as in debt settlement. And thank you all for the replies. How much is debt settlement again? And where to find a credible company? Can you recommend any? Also, I really don't want to file bankruptcy but that automatic stay is very tempting right now..
Posted on
November 12, 2009
at
1:53 am
Yes debt consolidation as in debt settlement. And thank you all for the replies. How much is debt settlement again? You mean the fees? Debt settlement companies will charge 15% of the total debt amount spread over 18 months or take a percentage of the settlement amount (20-25%)Don't forget to ask for their fee structures. Your monthly payments might not be used to pay off your debts in the first few months as it might be used to cover your fees.
Posted on
November 12, 2009
at
2:21 am
I really don't want to file bankruptcy but that automatic stay is very tempting right now..Oh don't even think about filing bankruptcy for an unsecured debt. Stick with debt settlement for now, if it's not really for you, your settlement company would inform you anyway. If you're not getting legal action threats you don't need the automatic stay provision.Bankruptcy should be your very last option as its impact on your credit is going to be significant.
Posted on
November 12, 2009
at
2:23 am
I agree and to add to that:A Chapter 7 stays on your credit for 10 yearsA Chapter 13 stays on your credit for 7 yearsBoth stays in your public records for 20 yearsDebt settlement stays on your credit for 7 years but not in your public records at all.
Posted on
November 12, 2009
at
2:25 am
Yes debt consolidation as in debt settlement. And thank you all for the replies. How much is debt settlement again? And where to find a credible company? Can you recommend any?Hey, destroydebt.com offers a free initial debt consultation, just fill out a form - and also, get matched up to the right program/company for you!
