I signed up for a debt relief program with Beyond Financial for $30k. Since then, I’ve been seeing a lot of posts about people being sued while in these programs. It’s starting to make me nervous. Does anyone have a positive story about using a debt relief program? Would love to hear something encouraging.
My wife and I had $50k in credit card debt and worked with Freedom Debt Relief a few years ago. They let the accounts go to collections and then negotiated with collection agencies to settle for about 30–50% of the original amounts. We paid a law firm fee as part of the plan, and they handled any lawsuits that came up. It took just under 4 years to get everything cleared, and our credit started improving after the third year once most accounts were settled.
@Tavis
I’m about to finish with them too—had $13k in debt. It’s been smooth overall, except for one month where I got double-charged, but they fixed it quickly.
@Tavis
I’ve got three months left with Freedom Debt Relief, and I can’t wait to have my credit cards fully paid off. My credit has already improved!
I’m currently working with ACC, and so far, I’ve been happy with them.
Hart said:
I’m currently working with ACC, and so far, I’ve been happy with them.
Same here! It’s been a few months, and I’m already seeing progress.
Hart said:
I’m currently working with ACC, and so far, I’ve been happy with them.
What does ACC stand for?
Hart said:
I’m currently working with ACC, and so far, I’ve been happy with them.
What does ACC stand for?
American Consumer Credit.
I had $27k in credit card debt and used a non-profit credit counseling service. They got my interest rates down to zero, and I was able to pay everything off in 3 years.
Jai said:
I had $27k in credit card debt and used a non-profit credit counseling service. They got my interest rates down to zero, and I was able to pay everything off in 3 years.
Zero interest? That’s a game-changer. Can you share more details about how it worked?
@Dev
This was back in 2008, but here’s how it went: I was required to be 30 days behind on payments before they could negotiate with my creditors. They managed to get my interest rates down to zero. I made one monthly payment to the agency, which included a small fee, and they distributed it to my creditors. I paid everything off in about 3 years, and my credit bounced back pretty quickly after that.
I work in debt collection. Most companies will settle for 50% if you can pay it all at once, or they’ll offer smaller discounts with payment plans. Last week, we settled a $58k account for $17k as a lump sum.
@Kelby
What would you suggest for a personal loan with Citibank? I owe $20k and haven’t been able to make payments for three months after losing my job.
Dakota said:
@Kelby
What would you suggest for a personal loan with Citibank? I owe $20k and haven’t been able to make payments for three months after losing my job.
Explain your situation and see if they’ll work with you. Many companies are open to settling for less if you’re upfront about your financial troubles.
Debt management programs are better for your credit because they help you pay back what you owe with lower interest rates. Debt settlement programs, on the other hand, tell you to stop paying, which can hurt your credit more and not all creditors are willing to work with them.
I’m currently in a program but have mixed feelings. Their fees take a big cut of any savings I get from settlements. For example, they negotiated $5,560 down to $3,307 for one account, but their fee was $1,500, so I didn’t save much in the end. That said, it’s helping me stop the endless cycle of paying interest, so it’s still worth it for me.
I paid $25k into a program, but they didn’t settle anything. I got sued multiple times and ended up settling directly with the lenders myself.
I used Beyond Finance for about $30k of debt and did get summoned twice (Discover and Capital One). It was nerve-wracking, but I filed paperwork showing they were trying to negotiate, and both cases were dismissed after settlements. I’m set to be debt-free by mid-2025.
@Hollis
That’s amazing! So glad it worked out for you and you’re so close to being debt-free!
Riley said:
@Hollis
That’s amazing! So glad it worked out for you and you’re so close to being debt-free!
Thanks so much! I can’t wait to be done.