Robin.Hall

[CCCS vs Settlement???]

I have $27,000 in unsecured credit card debt. I haven't been able to pay the minimum payments for about 3 months and creditors are calling. I have exausted my options and feel consumer credit counseling "CCCS" and debt settlement are my only options left. Which do you think is better for my situation and can you recommend any companies? Appreciate your replies!

[timmy]

with settlement you are running the risk of being sued, garnished and it will hurt your credit more

[Seth Watson]

Not a good answer Timmy. When you are delinquent for 3 months already, your credit is MESSED up about as much as it's going to be from that particular debt. Consumer Credit Counseling is just that...COUNSELING. Most companies require you to be current on the payements in order to enroll. In other words, they can't go snatch the debt up from all the collection agencies and "Consolidate" it. If you are delinquent, then there is a reason why you can't make the payments, in which I would ask if you would be able to make payments in another program? There are a lot of variables, which is why Timmy's answer was unsatisfactory to say the least. Management programs are like Ch. 13 Bankruptcies, you send your money to a third party and they pay your bills for you. Ch. 13 requires you to send it to a State Appointed Trustee, but there is no difference. They may cut your interest down to a "LOW" 15%, in which you can get out in 5-7 years and pay another 10K in interest, and have third party intervention marks on your credit report. If they are going to take legal action, then it will happen regardless, since you are not paying at the moment anyway. The question is whether or not you want to get RID of the Debt, and how fast. All negative what if scenarios tend to not happen, and if they do, then it actually creates leverage to use against your other creditors. The credit score will always go back up. Debt doesn't go anywhere.