High odds of debt odds of lawsuit?

by glenn
(California)

If u have high debt is there a certain amount of time that i have to settle this debt before the creditor threaten me with a lawsuit? Can this happen with in the first year?

I don't have the money to pay a lump sum now but in time I would be able to a pay I hope a reduced settled amount. currently i m not late on any of my bills but the lack of business has proven that i cannot continue to pay due to a shortage in income. I live in California I have talked to credit settlement companies they make u feel NO PROBLEM they'll settle your debt but they want huge amounts of money which is why i m considering doing this myself. I have the stomach especially when u consider the saving not hiring one of these companies. The savings alone will pay off some of my debt.

But obviously my concerns are about the lawsuits i have unsecured debt an i need time to raise the monies to pay these off. I was told it is better to offer a lump sum as opposed to making payments. based on conversation if i save ex amount per month with in 18-24 months i should have all the monies to settle debt for a negotiated amount. Can you advise?

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Mar 02, 2010
 settling debt
by: Gerri

Glenn,

There is no set period of time in which a card company will sue you if you can't pay. Every creditor is different. But my experience has been most don't often sue in the first year, especially if you stay in touch and tell them you do want to pay but can't quite yet.

I don't recommend consumers try settlement unless they can come up with roughly 50% of the amount they owe within three years. During that time, you'll start settling some debts, so that means you have to be able to start saving up money to settle right away.

I believe you'll find our debt settlement podcast helpful as you start down this road. I've interviewed consumers who have successfully settled debt (usually with at least some coaching) so if you have the stomach for it, and can come up with cash to settle along the way, there is a very good chance you can be successful.

Please let me know what you think of the podcast, and keep us posted on your progress.

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