I have been asked by so many victims of debt settlement company to help them find refunds that I have lost count. In a few cases, I have been able to direct them to the trustee responsible for paying partial refunds. Most clients are not that fortunate. (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Archive for the ‘Eliminate Debt’ Category
Overpaying on credit card minimum payments
(Ask a Question) Why does overpaying one month not reduce my minimum payment for the next month? When I paid $50 more than the minimum payment, the next month’s payment was almost the same ($4 cheaper). Why does the monthly payment not drop by more since I basically paid a big chunk of it early. (more…)
Will debt settlement affect my credit worse than through nonprofit credit counseling?
(Ask a Question) I am in a position of receiving a little unexpected money this week. I would like to pay off as many bills as possible with this money to make it go as far as possible. I contacted one creditor and inquired if they might settle. They agreed to settling the balance at about 55%. The savings is just under $600. Will this affect my credit score in a worse way than continuing paying monthly through a non-profit consumer credit counseling company? (more…)
I have several credit cards–can I just settle my biggest one?
(Ask a Question) I have serval credits with low balances that I can pay, but I have one that is huge that I cannot afford their min payment. Can I just do debt settlement on this one without going through my whole financial life. (more…)
Will paying off debts older than 3 years hurt your credit score?
(Ask a Question) I’ve been told that, paying off 2 small debts I have (one for $70, the other for $200) These are bills that I didn’t know about & have gone into collections (obviously, I rarely check my credit report) & just found out about them.
I was about to call up the collection agencies & pay them off, when my friend informed me not to, that it would only serve to diminish my credit score.
This seems contrary to logic (but then so does credit, to me). Either way, is my friend right? Am I better off, just not paying those two past due bills, since they’re both older than 3 years? (more…)
Will paying an $88 medical bill hurt my credit?
(Christina) I am in the process of buying a house and we are closing in 3 weeks. My lender asked me to explain two negatives on my credit, one being an $88 medical bill from 2009 that I was unaware of. I did not realize this was for underwriting purposes only, so yesterday I called the collector to find out about the account, and paid it in full thinking it would help. My lender then told me this would “dramatically” impact my credit in a negative way. After reading about the “Fair Isaac” decision on no penalty for paying off a debt collection in full, I am doubting what my lender told me. With three weeks until closing, how quickly might this be reported to my credit, and what impact might it have on my closing? We have been approved for FHA and losing this house over paying an $88 debt will be crushing for us. Thank you. (more…)
Should I hire a debt settlement company?
(Barbara from New Jersey) I have about $10,000 in credit card debt. I have seen commercials for Morgan Drexen and other debt settlement companies. Is this a good idea? Should I hire a debt settlement company? (more…)
Is Lincoln Drexel Legit?
Several of our visitors have complaints about a debt settlement company called Lincoln Drexel. Who are they and are they legit? (more…)
Credit Solutions Telephone Numbers have been Disconnected
(Question submitted online) I signed up with Credit Solutions a few years ago to settle 2 accounts. I paid off one account and haven’t received anything to say it has been fulfilled. I have been trying to contact Credit Solutions for months with no luck. All of their numbers have been disconnected and the new # on their website doesn’t work. I called the firm where my debt was to confirm I have paid in full and they said they couldn’t give me any information because I signed a Power of Attorney with Credit Solutions. I am trying to settle my 2nd account and I am running into the same problem with this firm and they won’t give me any information because of the POA. I just want to take care of my debt and rebuild my credit. What do I do now? (more…)
Can you Trust a Debt Settlement Lawyer?
The advertisements claim that you can settle your debts for far less than you owe. While that notion may in some ways be true, you might be in for a very bumpy ride if you think that one of these nationally advertised debt settlement companies can actually help you. They can sure seem helpful, until you pay them. (more…)
