Posts Tagged ‘negotiation’
Best answer from question by Roderick C:
Answer by Hatlady
Debt consolidation can be a trap if you use your home equity to pay off credit cards. That is one reason why so many homeowners are finding themselves in foreclosure these days.
Debt settlement is a better option for most people.
Both are equally effective – the question is what do they leave in their aftermath? Debt consolidation can be expensive and lead to a situation where your home is not worth what you owe on it. Debt settlement can leave you with less than perfect credit, but that can be fixed over time.
I would be more concerned about the “side-effects” of either situation.
Best answer from question by Robert Mckenzie:
Answer by JIM
I find these companies totally useless except for ending the hassle from individual creditors. They claim to “repair your credit in 5 years”, but the fact that you have used such a service appears on your credit report and remains there for six years after you have finished dealing with the company. Who will give you any sort of credit faclity when they discover you have used such a company. Therefore your credit is screwed for eleven years in total.
Unless your situation is extreme – no possibility of employment in the foreseeable future – it is better to negotiate with your creditors individually and so get your debts sorted in one or two years rather than the five years referred to in the companies ads