Call Us Today! 1-877-570-1313

I have entered into an agreement with a company called State Capital Financial but have not paid out a payment to them yet. It is due to come out next week. I have over $29,000 unsecured debt I am pursuing to get taken care of in the program and want to make sure that this is a good course of action. I had used Consumer Credit in the past and it took me 4 years to pay off $7500 in debt. I lost a job in 2005 and did not find a new job till 2006. Though I have had steady employment since last year and have some really big payments I have eaked by and maintained an okay credit rating. I am worried about this impacting so negatively on my credit that I will be in a worse situation and be in a position of garnishment and judgement. I need to get into some kind of program as my payments are over $800/month and I am struggling to pay that. I have thought I should go back with using CCCS, but can never get anyone on the phone. Please advise. I don’t hav e any savings to speak of or a house that I could get a HELOC on to do debt consolidation.

Hello, if you decide to pursue debt settlement all the risks you mentioned are valid. With debt settlement your credit score will suffer for at least as long as you are in the program and usually several years after as well. Just like anything in life, there is no such thing as a free lunch and while debt settlement does reduce the debt you have it does adversely affect your credit score. However, if your situation is dire and you are headed towards bankruptcy, it may be the better option for you to avoid bankruptcy.

Debt management also impacts your credit score but not nearly as much.

If you cannot even get someone on the phone with a debt relief company you are considering, I say steer clear. You will be much better off working with a company you feel comfortable with and where you can readily reach a customer service representative who can assist you. Best of luck to you.