Question:
Considering bankruptsy. have been offered a get out debt plant for 18 months through a company called Fresh Start America. Sounds promising. Debt of $13K. With FSA, my settlement will be $7250 with fees included. Has anyone used this company and how reputable are they?With my 13K, should I even consider bankruptsy?
Answers:
Need more info before giving any advice.
-For starters, what is Fresh Start soaking you in fees?
-Are they negotiating to get these items off your report once paid? Note that line items as "settled" look no better then a charge off and still kill your credit.
-Are you going to be able to make these payments?
Many people don't think $13k is a lot of money..but if you don't have a job it's a fortune! I don't like seeing people file for under $20k but if you have no choice..what are you gonna do?
Just be carefull about the fees you are paying. Many of these credit settlement companies are scams and do more harm then good. Research it...go to the FTC's website and read the page they have on debt settlement companies.
If you can avoid bankruptcy then don't do it. Check with the Better Business Bureau in your area about the company you are considering using. If you are still not sure then speak with a local financial institution to find out if they offer debt counseling or if they could recommend a company. The settlement sounds great, but you need to figure out what your spending habits are before you settle, so that you will not be tempted to run up a debt again.
I would go for the BR..Your gonna still have the same credit even with having to pay for most of what you already owe. Why do that? It's easier to "start fresh". If something happens down the line while you are paying these off, they won't take a lesser amount payment and will throw that in your face. "Well you said you could pay x amount!". Why worry anymore about the bills. Get rid of them. If you are to the point to where you can't meet them then so be it. Alot of people are in the same boat right now. The economy sucks and it is not gonna get any better any time soon. Saw on the news today that the dow dropped again big time. That isn't good. But, I would go the BR. That doesn't even sound like a deal to me. If they were really gonna help you then the whole amount you pay should be alot lower than that. Good luck in your decision making. And I hope things get better for ya.
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