How do you feel about the debt settlement companys??

It is ultimately your decision, but it sounds like credit counseling is getting you nowhere. Just be aware that debt settlement will damage your credit and debts won't get settled overnight... the process takes time, but it does work (and is a lot quicker that credit counseling).

The BBB report is a good sign that you are dealing with a trustworthy company. After you enroll, be sure to check in from time to time to see how things are going. They will do a lot of work for you and there may not be much to report in the first few months, but you should still stay involved in the process.

Sarah
Unless you have a Bank of America credit card...in which case you are causing yourself more trouble by going w/ debt settlement than you are already in. BC then you have to pay for an attorney too when they take you to court. And be prepared to claim the unpaid portion and get taxed on it...your cc company will send you a form call a 10-99 which you fill out...example - your balance is $5000 and you settle for $2000...you claim the $300 which was not paid back as income and they tax you on it come tax time. Plus your account will fall 1, 2, 3, 4, 5, 6, 7 payments behind and you get calls those whole 7 months until they do settle...
They are deceiving, they tell you not to talk to your credit card company bc they are evil which is not true they are very willing to work w/ you as long as you listen to them and keep them in the loop as to what is going on :)

If you want to do it yourself, I highly recommend getting the DIY Debt Settlement Kit at www.diydebtsettlementkit.com.

Things I know now. I started out with one company, that sold my account to another. They promised me I wouldn't owe anyone anymore if I made 37 $575 payments. I only have $1,290 a month income, but so far, I've made 9 consistent payments and we get by with food stamps and the food pantry. Last month, the Sheriff served me a summons from Citibank who is suing me for $22K++, I called my debt people & they said to fax the summons so
I did the next day. I only had 30 days to figure out how to respond in proper legal form along with a $188 filing fee I couldn't afford, or lose automatically, so after 2 weeks of not hearing from them, I got nervous and called again. After being put on hold transferred and disconnected several times, someone finally told me they were all busy & would call me back in 24-48 hours. After almost 72 hours, I called again and after getting through, they told me they were all busy & someone would get back to me in 48-72 hours! I said NO- I want to talk to someone now or stop taking my money! They put me through to someone within 5 minutes. This woman didn't seem too interested and told me they couldn't legally advice me. She suggested I write a hardship letter and give it to the court clerk. I explained that I had already been there and was told all answers must be in proper legal form and submitted with the required $188 filing fee. She then suggested I go to the library to find out what legal document I needed. I asked her how I would pay the $188, she said I would just have to find a way. Then she asked if there was anything else she could help with! I said yeah, call citibank's attorney. 3 business days later, after still not hearing back from them, I called and terminated our contract. If I was refunded the money I already paid ($5,175) and save up for 2 more months, I should have enough to settle my other 3 debts that add up to $10K on my own, then I could offer to make payments to Citibank of the same $575 for 3 years which would be a little over $20K...but wait! Here's my contract of which they gleefully reminded me
Retainer Agreement (funny, I tried to copy and paste the agreement, but it all came out as little blank boxes)..anyways, it says, word for word on line 2. Compensation of Law Firm. In consideration of the services to be performed by Law Firm, Law Firm shall receive from Client a non-refundable fee in an amount equal to 13% of the total debt placed with the Law Firm.The remainder of Client funds will go into an Attorney Escrow account and is accessible by Client at any time, to be used for personal use, or to settle a contract dispute with a third party. Your payment schedule shall be $575 per month for a period of approximately 28 months, (remember, I was bought by them from another debt lawyer)and shall be distributed in accordance with the attached "Exhibit A". Payment of the NON-REFUNDABLE fee entitles Client to ongoing negotiations. In addition, there is a $59.00 monthly processing fee included in your payment. This processing fee is also NON-REFUNDABLE. In the event the Law Firm is successful in settling a lawsuit with any third party, Client shall receive 100% of the settlement, exclusive of attorneys' fees. Yep, I signed this when my first debt lawyer sold me out to these people. I read it, but somehow did not comprehend. I just kept hearing them tell me to tighten my belt, make 37 payments total and it would all be over. I just don't see why I must pay 13% of $32K to a company that has done nothing but ignore me and how come they wouldn't give me $188 to file my answer to the lawsuit? I reported this to the BBB, but I am still naive as to the good of any of my efforts. I would like to know how long it has been "common knowledge" amongst debt settlement firms that Citibank will not deal with them and will accelerate their collection efforts on those who use them. Did they take on my account knowing this just to make 13% off my 32K? Did they purposely ignore me so I would get frustrated and cancel, thereby giving them Free money and no longer having to deal with me?