Posted on
January 25, 2010
at
5:51 am
What is the wisdom in getting debt written off?
Posted on
January 25, 2010
at
5:54 am
Why are you getting your debt deliberately written off ...or you really can't afford to the monthly payments anymore? I know it's none of my business...but since you're asking about "the wisdom" of it ... I'm asking about the ethical reason behind your question...then I'd answer your question. I promise.
Posted on
January 25, 2010
at
5:57 am
I truly can't pay the monthly payments anymore. I am behind by 3 months ... and so far I haven't received a legal action threat from my creditors ...which I am thankful for ..but. I do worry that they might, as some point, raise it up, and I do not have any idea as to how to respond to a legal threat. What's the worst case scenario for my months of non-payment?Written off means 6 months of non-payment, correct?
Posted on
January 25, 2010
at
6:03 am
Okay.The wisdom in getting your debt written off is that it gets passed on to a third party collection agency. When that happens, you have a chance at debt settlement, meaning - you can negotiate your balance to a lesser amount - meaning you don't have to pay for the full amount. It's called debt settlement. Your original creditors do not do debt settlement. They'd either sue you for judgment (your worst case scenario) or write off your debt (& then pass it on to a collection agency).The collection agency would agree to a debt settlement.
Posted on
January 25, 2010
at
6:08 am
You are correct. Getting debt written off is non-payment for 5 to 6 months.And to add to the previous post - a debt settlement is a program that aims to reduce your balance to more or less half of its original amount.You can do a d.i.y. debt settlement or you can hire the services of a debt settlement company. The program runs for a year to three and it would cost you 15% of your balance or the settlement company would take 2-25% of the settled amount.If you are interested in debt settlement and would like to be matched up to a legitimate settlement company - fill out a form here at destroydebt.com, it is free of charge.
