Help with starting Debt Negotiation

Submitted by jayben on Wed, 10/28/2009 - 20:16

Hello. I have a lot of outstanding debt...the sum is totaling around $6000 spread over 5 accounts. I am trying to figure out a way to pay these off in a matter I know I can do but I'm not getting much luck with negotiating. The problem I'm running in to is that they're all so old. The debts I've accrued are about 2 years old. Two are overrdrafted bank accounts that are in collections. One I spoke to offered some repayment options but kept saying they'd need a downpayment of around 600 dollars, which is really steep for me to afford at this point for just one debt. And when I say I want to get everything in order before I commit to an option this one in particular said they could 'hold' the debt for $100 or so, which I didn't do because I didn't see how that would help me.

Are there other means out there for me to negotiate these debts? i've heard about debt relief as well and debt consolidation. i'm not sure what the drawbacks are for each or if it would be the right thing for me. I realize it will take some time, but I'm having a real hard time starting. Any advice is appreciated, because I don't want to have these prolonged much longer where I wind up in court.

Hello Jayben, If you can not afford to pay off these debt you may want to consider going through a debt settlement company. Creditors are usually more willing to work with them. When looking for one try to find one that has a good reputation and good word of mouth. The best ones are usaully the non profit agencies.
One thing is for sure you do want to do something as soon as you can because you could end up in court and depending on where your income comes from (ss is exempt) they could very well attach your wages. Some others here may have even more advise so be sure to check back. Good luck

Thu, 10/29/2009 - 02:11 Permalink

HI Jayben,

If you have so many outstanding debts, then I think you should opt for debt consolidation. If you enroll in a debt consolidation program, you can have your debt interest reduced and any kind of extra fees waived off. If you wish to do it alone, then you can take out a consolidation loan and pay your debts after negotiating it with the respective creditors.

If you wish to seek help from a debt relief company, then you must check the whereabouts of the company, the facilities they are providing and the fee that they will charge. Also check if the company has a BBB rating or not. Once, you get enrolled in a debt consolidation program, you will have to go through debt counseling wherein the counselor will evaluate your situation and tell you whether or not you should go for consolidation.

If you finally become eligible for consolidation, then the company will negotiate with the creditors on your behalf. You will have to calculate the amount you can pay on a monthly basis and give that to the relief company. You have to continue doing this until you have cleared the debt. However, for rendering this service the debt relief company will charge a fee.

Thu, 10/29/2009 - 06:51 Permalink

Debt consolidation may be your best way to go as Justin has stated here.

The one wanting you to pay $100 to hold the account is full of it, I think that you need to check out your states statute of limitation. If you tell us what state that you are from then we can find the information for you and post it here.

Thu, 10/29/2009 - 23:08 Permalink

we are a non-profit debt consolidation and budget counseling organization rated A+ by the BBB. If your debt is only $6k we'll manage the debts for you for only $10 month, no enrollment fees, no other hidden fees- and you have it in writing- with witnesses, lol.

Our goal is to help people get out of debt. when i see someone on here like yourself i have no problem offering our services at a reduced rate to ensure you some financial relief and an affordable program that can provide peace of mind and proven savings. check us out, give me a call direct for the $10 deal, Michael Brazier.

Fri, 10/30/2009 - 15:33 Permalink

hey thanks for your advice...i think that i might either try to contact a debt relief company or learn more about a consolidation loan. but thanks for your help

Mon, 11/02/2009 - 20:35 Permalink

NoOOOoooo Problem***

Just make sure whomever u decide to do business with check them out with the BBB. Please make sure you understand if you're working with a settlement agency or a consolidation agency like ours and understand the ends and outs of each. We get a LOT of clients who were burned bad by settlement agencies and they havent the best reputation in the debt management arena.

Good luck to you and yours in all future ventures and if I can provide any further information to help you make a decision please do not hesitate to contact me.


Mon, 11/02/2009 - 20:46 Permalink

Jayben, You will really need to do your homework if you deal with a debt settlement company. Looking back at just the recent posts here you will see it has become a lucrative business and there are so many companies giving the good ones bad names. Just do your research and think every decision through. A consolidation loan through your bank would probaly be the best and the safest bet. This is what we did and it really helped. Good luck.

Mon, 11/02/2009 - 22:42 Permalink

I agree, you really need to do your homework before you turn over your information and bills to a company to act on your behalf. They can either do wonders or make your life hell.

Tue, 11/03/2009 - 01:36 Permalink

I think everyone here has given you some really great advice. The problem with payment plans is sometimes there are "hidden catches". Seriously, my boyfriend owes the IRS & has owed them for like 2-3 years. He set up a payment plan with them. With their interest, he's literally been paying them every month for nothing. The interest they charge has left him paying them thousands of dollars & he owes more now than he did when he set up the payment plan to pay down the debt owed. So, just be careful. Look into the fine print & do your homework [like others have already suggested]. As long as you are paying them SOMETHING...anything, they should leave you be until you can save up to pay them off in full OR in payments.

Tue, 11/03/2009 - 05:04 Permalink

Don't you find it ridiculous that a government agencies charges you as much as a rotten old collector that has purchased your debt? You would think that would be against the law.

Tue, 11/03/2009 - 11:43 Permalink

I know it should be. And them knowing how bad the economy is and people don't have jobs and are losing everything they own everyday it would seem that your own government would know what people are going through and not charge the interest as long as you are trying to pay on the debt.

Tue, 11/03/2009 - 14:03 Permalink

Yeah, I agree. I thought it WAS illegal. Shows how much I know. He's been paying payments on it for 2 years & its not even putting a dent in it. It's ridiculous really. Scary is the word for it actually. We want to look into those commercials you see on tv for getting the IRS debt taken care of. We're skeptical though because we don't know anything about it & we dont want scammed. Who does? It seems like alot of the commercials for stuff is a big scam & the always show testimonials with little disclaimers saying "results not typical" on stuff. Of course, that makes us even more skeptical. I mean seriously, if we are paying for it every month-That should count for something & should reduce the debt. Especially when it's the payments that they said that he would have to pay.

Tue, 11/03/2009 - 16:18 Permalink

I have seen the attorneys on there who office to get rid of irs debt, I guess they will even settle out just like any other bill.

Tue, 11/03/2009 - 20:10 Permalink

Yes, that's where I get skeptical & scared. lol Debt settlement usually requires that you cease payment, then they start putting the payments into a savings account until they have enough to try to settle with. I'm worried that they might tell him to cease payment to the IRS & then they garnish his wages [which is our only source of income at the moment] or worse, take it out of our shared bank account & savings account like on the movie "pursuit of happiness". It just scares me. I don't want to be homeless!

Tue, 11/03/2009 - 20:19 Permalink

I have also see those adds on tv and wondered if they were safe. Because I was always told you never want to ever owe the IRS because they will get there money one way or another. But unfortunately I did owe them and never new it until 3 years later because I never received a 1099 they sent it to an address I never lived at. So now I'm trying to research and see if it is even my debt. It's not listed on my credit report anywhere. So I may have owed the IRS at someone Else's mistake.

Tue, 11/03/2009 - 20:45 Permalink

Wow debra. That's insane! What company was it through that was supposed to 1099 you? Do you even know who to contact to see if it was error? That's a shame really. When I did my taxes through HRBlock. I randomly just asked the girl if you had winnings or something & didn't report it what would happen. She just said, "Remember, Al Pacino didn't go to prison for money laundering, it was for tax abatement" Scary...

Has anyone here on this forum have an experience with the IRS programs on tv for settling the debt owed to them. This is something that is high on our TO-DO list. I'm telling you "Pursuit of Happiness" scared the h*ll out of me.

Tue, 11/03/2009 - 21:39 Permalink