I’ve been reading through messages and am encouraged by all the information here. I’m a new member on eccabana.com. We are facing some real problems currently. Our home’s value has fallen by more than $25,000 in the last six months. We aren’t behind on it and are working hard to pay our mortgage down.
We are, however, facing serious credit card problems. With a loss of employment and large medical bills, we’ve made some poor choices. All of our debt is from those factors now.
My question is, is debt mediation a good option? I received an offer from one company where they will collect a monthly payment from us and pay our lenders to settle the debt. But, in a phone call to them, we learned they want you to hold off on all payments to lenders and let the credit go bad. Then, as they accumulate enough money to work with one of the lenders, they negotiate a settlement. We could be paid off in 2 years.
We filed bankruptcy about four years ago, do to massive doctors bills from a heart condition. I’m worried about paying a company and not getting results. Any advice or perhaps suggestions? We appreciate your advice as we learn how to fix this problem.
Try to work with the CC companies yourself. You’ll have more control on who you pay what. If you get saddled into a large monthly payment to a place like this you might find yourself worse off. Unfortunately, since you’ve filed BK previously I would think you might know this but dont know what you filed, you have to become delinquent on your cards before the companies will work with you. They are determined to give you a neg. mark on your credit report. Basically no one will work with you until you default. I know, sounds stupid and it is. Makes no sense to me but that is the way it is. Also even tho you filed BK there are time limits but depending on which you filed you can file the other- meaning if you filed chapter 7 at some point you can file chapter 13 if needed
I’ve heard of that kind of debt mediation before, but something about it sounds fishy to me. There’s probably some legal stuff I just don’t know about, but letting everything get worse before starting a plan…it just doesn’t seem logical. To me. Maybe there’s some others on here that have gone that route successfully and can tell you more about it. There’s some non-profit credit counseling agencies out there that can give you some other options to consider. Good luck!
Stay far, far, far away from those companies. Very little of your money actually goes to the debt and a nice “contribution” goes into their pockets….