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Comments

L.S.

Thank you for taking the time to share your experiences and your comments. I'm sure that your insights are very interesting to our readers.

-- Contributed by: SusanWeber

I had a job in the debt settlement industry for two days.... I could not handle what the company was doing to people... The company was one of the more honest and forthcoming company's but the truth of the matter is that debt settlement will destroy your credit for at least 5 years and credit/mortgage companies are starting to look at "settled" as a super negative on your credit report... what it basically says is that you were willing to build up the debt, just not pay it back....

That being said, credit companies are ruthless just the same when it comes to dealing with people they offer credit. Late fees and silly little fine print that gives them the right to take advantage of the general consumer and change and charge fees when ever they want. I much as I like to see the companies get what is coming to them, the consumer is really the one that comes out on the bottom in the end.... Proceed carefully and educate yourself before making the debt settlement decision.

-- Contributed by: l.s.

Dear TCF,

You have correctly identified the pros and cons of bankruptcy and of credit card settlement. One additional factor to consider is the willingness of your creditors to settle. You may find that not all will settle, or that they will not be willing to provide a sizeable reduction. You should consider "testing the waters" with your creditors so that you can evaluate how much of your credit liability they will be able to settle.

-- Contributed by: SusanWeber

We have met with a lawyer (who we know personally) who will handle either our bankruptcy or will attempt to make settlements with our creditors. We're just not sure which route will be better in the end: accounts on our credit rating as "settled" or a bankruptcy. We realize both will have major negative dings on our credit and both will take years before their impact doesn't hurt us as much...but which will we be able to start recovering from sooner? I feel settled accounts will allow us to rebuild sooner. My husband feels bankruptcy will. We know both won't 'fall off' our credit report for 7 years. My husband feels bankruptcy is more 'forgiven' sooner than settlements. ?????

-- Contributed by: tcf

Debt Settlement may be fine for someone who's credit rating already sucks and who already can't make monthly payments. But, if you can pay your creditors and have good credit AVOID this at all costs! We are getting sued by one credit company we tried to settle with, it is costing us more as a result of this settlement process.

-- Contributed by: hb2008

Kyle,

As the article states, there are certainly some positives to debt settlement. At LoveToKnow we want to make sure that consumers remember that making smart credit decisions always starts with using credit wisely.

Thank you for your comment and for visiting LoveToKnow Credit Cards.

-- Contributed by: SusanWeber

I am a debt settlement advisor, I don't think that Debt Settlement is given as much credit as it deserves.

Anyone should have the chance to live debt free. Consumers who have maintained their minimums for at least 3 years have already repaid the entire amount they borrowed in the first place, however, they might have only paid down a few thousand towards the principal. Sky high interest rates and a drooping economy makes debt settlement a perfect choice to reclaim your life from the clutches of the credit card companies.

Debt settlement is a smart choice and regardless of the effect it will have on your credit score.. you need to realize that you are literally drowning in debt. All a credit score does is allow you to acquire more debt, which is the last thing anyone with debt needs..

-- Contributed by: Kyle

Bill,

I'm glad we were able to provide you with the information you needed.

Thank for your comment and for visiting LoveToKnow Credit Cards.

-- Contributed by: SusanWeber

Thankyou for putting pro's and con's on your site. This confirmed what debt counselor told me as to possible poor outcomes to settlement as compared to consolidation.

-- Contributed by: Bill
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