Should I do
Canadian Debt Settlement???

I saw this question over at: askmehelpdesk.com

Should I do Debt Settlement???
We are $65,000 in debt, (unsecured credit card debt) !!! We have looked into LAWGISTIX (U.S.) AND SUPERIOR FINANCIAL GROUP (U.S.) . We are very hesitant to procede because we have a credit score in the 700 range. We are current in all of our payments, never late, and in good standing. BUT, it is getting difficult to just make the minimum's and at this rate we will NEVER get out of this mess. I know that our credit score will take a huge hit, but I am willing to do it if I know that these company's can really settle for us. I don't know I guess I am just afraid of being sued and all the consequences that will go with it. If ANYONE has ever dealt with either of the above company, please let me know. Any positives and negatives would be of great help. ANY advice is appreciated. I need help!!!!!! Thanks a lot!!!!

Here are the questions that I have about their question:

1. Are you going to need credit in the near future, IE reapplying for a mortgage?
   
2. Are you able to increase your income in the near future to help make minimum payments?
   
3. How many credit cards do you have?
   
4. What else do you owe on ie.. car loan, bank line of credit?
   
5. What are the balances on each credit card?
   
6. Do you have any room left on each credit card?

These are the initial questions that I would ask this person before I would advise on his credit situation.

This person correctly indicated that the price of debt settlement means that they're going to take a hit on their 700 credit score.

If they're going to need to reapply for their mortgage in the next 3-4 years, debt settlement is going to be costly for them.

If their house is paid for and they aren't going to need debt in the next 3-6 years then this may be a good alternative.

One thing I wouldn't want to see is that this person's health suffers from all of the worries and hassles cause by trying to make minimum payments each month.

If a person is tired, exhausted and burnt out from making minimum payments, they're only going to get worse over the long term. And... you aren't get to feel better mentally by making minimum payments as you know instinctively that minimum payments aren't going to reduce your balance by all that much, especially if you're getting charged 18.99%.

Canadian debt settlement is a bankruptcy alternative for people at the end of their ropes. It's got some benefits, but keep in mind it is pretty harsh on your credit score, especially in the short term.

I liked this question as I'm sure that this person's situation isn't all that uncommon these days. $65,000 in credit card debt is surprisingly easy to come by. If you get caught by a lay off or sickness and can't make your payments, that's when the problems start!

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