Negotiating Down Debt
I contacted a law firm which states that if I stop paying on some of my debt they would then negotiate with my creditors to get a lower payoff balance. I know this will negatively affect my credit score but is this an effective way to clear up my debt quicker and cheaper?
Terry Says
Nope. They ask you to stop paying the cards, and set money aside so they can negotiate. Meanwhile, your credit is further ruined, even if there is eventually a writeoff of the balance.
Suggest you contact the non-profit National Foundation for Credit Counseling at 800-388-2227. They will show you the best way out.