Author Topic: I'm lost and need advise on how to expedite my credit repair  (Read 565 times)

0 Members and 1 Guest are viewing this topic.

SteveBrule

  • Valued Member
  • Posts: 3
Quick back story.  In July 2015 I decided to let Freedom Debt Relief negotiate my 35k debt with 9 different creditors. I had no late payments until that point when I stopped paying all 9 to start negotiations. So I was a bit naive going in and I'm slowly starting to see I had or have other alternatives to get all this rectified myself much faster and for less money. I want this debt gone and my credit repaired so I can move on with my life.

To date I have deposited $9,720 in the Freedom account. That 9720 paid off one 10k debt and started payment arrangements on two other accounts. Now I'm basically back to zero in my account and making payments on these other two accounts. I'm just deflated at this point. I will be 3 years into this before these few accounts are paid off and I will still have 15k+ in debt.

Please correct me if I'm wrong but that 10k sitting in my bank could have enabled me to negotiate settlements on the entire 35k of debt??

I was so scared of BK and being sued that I ended up in this seemingly endless mess with FDR.

What would you do or what should I do?

Please any advice will be greatly appreciated!


CleaningUp

  • Valued Member
  • Posts: 10408
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #1 on: May 12, 2017 11:23:56 PM »
It's simple actually.

it up, admit that going the "debt relief" route was a mistake..worse actually than filing a bankruptcy, fire them, and take control of your own finances.

You can do as well if not a lot better negotiating your debts by yourself.


Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #2 on: May 13, 2017 03:21:19 PM »
Please correct me if I'm wrong but that 10k sitting in my bank could have enabled me to negotiate settlements on the entire 35k of debt??


The crystal ball is in the shop this week, so we have no way to say what you could have done or what they would have accepted. Whether this FDR works or not depends on a few factors.....did they negotiate the debt down, and how much of what you deposited went into their pocket instead of the creditor's?

That's  the point that counts......if they bagged you for a high percentage in fees while at the same time negotiating the debt down, you gained nothing. My guess is that is precisely what happened. You owe 10, they negotiate it down to seven, and keep the other 3.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Clydesmom66

  • Valued Member
  • Posts: 2030
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #3 on: May 13, 2017 03:38:28 PM »
Please correct me if I'm wrong but that 10k sitting in my bank could have enabled me to negotiate settlements on the entire 35k of debt??
is

Whether it would have settled all of it is debatable without knowing who the creditors were but was is certain is it would have settled more than the one account.

For anyone else who is contemplating using a "debt relief or consolidation" company (you probably have learned your lesson now)  DO NOT DO IT.  They cause way more harm than any good they do.  The reality is that creditors are under NO legal obligation to negotiate with or comply with a debt settlement company.  In fact many refuse to even get involved when contacted by one.  They DO have a legal obligation to you as the consumer in a business relationship with them and you are better off handling the matter yourself where you have a LOT more rights and protections under the law.

I was so scared of BK and being sued that I ended up in this seemingly endless mess with FDR.

What would you do or what should I do?

You have no reason to be scared of BK but every reason to be afraid of being sued.  Many of these planned defaults that companies like FDR encourage consumers to do end up in lawsuits when the creditor(s) won't agree to the settlement company offer and terms.  When the creditor does sue the debt settlement company will disappear stating they do not handle litigation.   You are left on your own to deal with it.

If it were me I would fire FDR and start dealing with the creditors on my own.  I would see if a good will letter asking to settle the matter (even if it means small payments) and to clean up the credit at the same time.  Unfortunately you are not going to make this go away easily or quickly.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #4 on: May 13, 2017 04:10:05 PM »
35K for 9 accounts, less 10K for one leaves 25K for 8 accounts. They must be small amounts. List the banks and the amounts. Arbitration will do more to get you a good settlement than anything else.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

SteveBrule

  • Valued Member
  • Posts: 3
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #5 on: May 13, 2017 07:01:18 PM »
Thank you for the responses! Correction, it was 8 accounts total. The remaining 7 are below.

FDR collected $1,925 in fees for the Lending club negotiation of the $9,359 balance. I show that I paid $4,212 to payoff that account.

I pay FDR $12/month for litigation protection from NLLG.

Prosper
4434.42

Synchrony Bank
5722.26

FNB Omaha
3350

BB & T Financial
5011

Citibank
6530

Smile Brands Finance Inc
866

Chase
998

Total 26911.68

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #6 on: May 13, 2017 09:57:08 PM »
Well, start filing arbitration on any account that has an arb clause. That will get rid of most of them, or at the very least make them settle for very little.


FDR collected $1,925 in fees for the Lending club negotiation of the $9,359 balance.


My my, Bruno is psychic. Who made out better with that one?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

  • Valued Member
  • Posts: 10408
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #7 on: May 13, 2017 10:18:28 PM »
That would have paid off Smile Brands and Chase with some $61 left over for quite good bottle of wine.

See what we mean about doing things yourself.

Ditch the DRC, and start saving up your money...Start direct negotiations with the other creditors, one at a time based on how much you have available to make the settlements.  The longer the debt goes unpaid, the creditors tend to come up with better settlements for you based on the business decision of cash in-hand vs costs to carry and collect.

JDB have more flexibility since they have so little invested in the debt.  End of the month/quarter are good times to wrangle agreements since most collector work on commissions based on the money they have taken in.

Read up here on the Board on settlement agreements.  Don't commit to any payment plan that you can't keep up with, and make sure you have the agreement in writing and signed BEFORE the money changes hands. Look also to including non-disclosure agreements sufficiently broad to allow you to dispute-off negative trade lines on your credit.

It may take a couple of years to get all of these settled, but you can get them settled, settled faster by yourself, and settled for much less than you think.  Go after the smallest ones first since you can get them completed more quickly, freeing up more cash to put against the next one in line.
« Last Edit: May 13, 2017 10:27:01 PM by CleaningUp »

SteveBrule

  • Valued Member
  • Posts: 3
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #8 on: May 14, 2017 10:17:17 PM »
I will read up on arb and settlement agreements. Thank you all that replied. Gave me the nudge and direction I needed.

Chuhi

  • Valued Member
  • Posts: 1
Re: I'm lost and need advise on how to expedite my credit repair
« Reply #9 on: August 21, 2017 01:41:57 AM »
Sorry for hijacking your thread Steve, but my situation is very similar to yours.

 I'm in the process of dumping Freedom Debt Relief too. They settled  a debt of $11,960.54 for 50% with an OC. At the time, I thought it was a good deal until you add their settlement fee of $2283.54, and the fact I'd read otherwise on this site.
 
I'm 4/12 payments of $480.38 into the settlement, and I still owe FDR another $749.12 in fees too.

Not sure if it's a good idea to stop paying on my current settlement, since I'm 4 payments in, and try to renegotiate a new one with a PFD.

What are your thoughts?