No. of Recommendations: 10
I am thinking about getting rid of this using a debt settlement program. Is this better than a credit counseling program? What are the differences? Which one is better?

First - BREATHE - then - put away the cards- shred them/freeze them/mail them to me - whatever - make them inaccessible to YOU.

Change your behavior first.
Read old threads with HELP as the subject matter ;-)

Settling a debt is an option - not IMHO the best one.
Here's how it works (using one creditor for the example)
- you have $24K in CC debt - you offer the CC company $8K in exchange for closed accounts with zero balances.
1) big black mark on your credit report (BIG)
2) you will receive a 1099 at the end of the year in which you pay off that 8K for $16K. The Difference between what you pay and what you owe is considered income taxable at 28%. So you will also need another $4500 for the tax portion of it.

Counseling is where a third party contacts the CCs and negotiates lower rates for set payment amounts in exchange for @ $10 per month per Creditor.
So you are paying them to make payments for you - when that extra $20 a month should be going towards the debt.
This truly is something you can do ON YOUR OWN. Just takes time and you have to resort to doing everything in writing - NO PHONE CALLS. No agreeing to anything via the phone or believing what soemone tells you - write a letter- get your offer/payment arrangement/new interest rate in writing.

peace & doing it yourself
t
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