Debt Settlement Pros and Cons You NEED to know

[@AscendFinance]

If you are struggling with debt and don't know what to do, please consider taking our free debt options calculator: tryascend.com/qualify/calculator/route/ytdsproscons If you have any questions, feel free to give us a call at 833-272-3631!

[@nikkonaner]

Hello! I keep not getting a clear answer but my debt is not charged off but I want to settle cause im behind, once I pay is it gonna say charged off? People seem to say that settlement is the same as paying a charge off not sure why

[@AscendFinance]

A "charge-off" happens when the creditor has given up trying to collect the debt, usually after 180 days of non-payment. The account will be marked as "charged off" on your credit report. However, this doesn't mean you no longer owe the debt-just that the creditor considers it a loss. If your debt is still active and hasn't been charged off yet, you can settle it. Settling typically means you pay a lump sum (usually less than the full balance) to close the debt. Once you settle, the account will be updated to show that it's "settled" or not "charged off."

[@nikkonaner]

@ thank you so much for your help!

[@AscendFinance]

Absolutely!

[@mouhamadoudjite3084]

Thanks for this video. Question: how likely is that Navy Federal credit union will sue you instead of settling the debt with the new creditor ?

[@AscendFinance]

Hey! Credit unions generally may be harder to settle with so they may be higher risk. Are you signed up with a DS company?

[@darinlegore284]

this is not a "debt consolidation loan", but a voluntary monthly payment into a neutral Savings account set up to pay creditors? Can they dual track you, and start additional proceedings while also negotiating with debt companies? Does initiation with DEBT SETTLEMENT CO stop collection calls? Is an agreement with DEBT SETTLEMENT a legal obligation to them as third party?

[@AscendFinance]

Hi Darin, you have a lot of really good questions! You are right, it is not a loan but a payment into an escrow account set up by the settlement program. Once the account reaches a certain balance, the settlement company uses those funds to negotiate with creditors, aiming to settle each debt for less than what you owe. Often times they will have a minimum amount to be drawn into that account so that there is a timeline expectation where they know they have enough funds to negotiate. Debt settlement companies often reach out to creditors to inform them that they represent you, which may reduce calls. However, creditors can legally continue to contact you unless they agree to pause their collection efforts. You can also request that the settlement company send a “cease communication” letter on your behalf, but this doesn’t prevent them from suing you or pursuing other legal options. To discuss things in more detail you can call or text my team at [phone] with your questions.

[@iKonk.]

What are your thoughts about JG Wentworth?

[@AscendFinance]

Hi! We do not work with that firm, we are very picky on what firms we refer people to. However, we don't like to talk poorly of other companies. If you want to compare options, give us a call at 833-272-3631.

[@kevinhobbs9896]

I have alot of credit card debt one is got a law firm trying to collect but I wasn't aware my debt was sold I haven't worked in over 2 years for health reasons I have a disability hearing in about 5 weeks if I get approved I will get a lump sum up front should contact the junk debt buyer or the law firm

[@AscendFinance]

Thanks for the comment, Kevin. Give us a text or call at 833-272-3631 if you need any help!

[@hisnameisiam808]

Try: liberty debt elimination

[@pxa523]

I have 793 credit score but my debt to income ratio is high I took out a loan to consolidate credit card debt and i currently owe $12,470 out of a 15,000 loan I started 8 months ago Do you think a debt settlement would help me or just stick to my loan?

[@imtheknow..2847]

To late to settle. That’s for unsecure loans. By consolidating your loan instead of settling, now your single loan became a secure loan. (Likely with collateral now). No settlement for that.

[@AscendFinance]

Thanks, sorry, I am behind on comments - Any chance you can call me/us at 833-272-3631? Would love to chat through it.

[@rafest6532]

How can they sue you after you paid them?

[@AscendFinance]

If you have a settlement agreement with your creditor and are paying accordingly to it - I don't believe you would be sued. We see companies sue when people are behind on their payment and don't have a settlement or payment plan set up!

[@littlemermaid7408]

The calculator said I am better off with a chapter 7 but then I got referred to a lawyer I already consulted who said I need to do a chapter 🤷‍♀️

[@AscendFinance]

Darn, sorry that happened! The calculator creates estimates based on the information you gave us. Were you able to qualify for a Chapter 7 by passing the means test? The calculator may have estimated that you are over the median income for your household size in your state but was close enough to maybe qualify for a chapter 7 based on the second half of the means test. Sorry if you weren't able to qualify. Wish you the best! Let me know if you have any questions!

[@littlemermaid7408]

@@AscendFinance No worries. I figured this happened because I did not add the money I make in commission. This sucks because that money is not guaranteed or always the same but yes it would push me to a 13. But I heard from another attorney that my lawyer can file and it can get dismissed. It’s not guaranteed. Meanwhile, with the way things are looking, it seems that I will never pay all those credit cards with the super high interest rates, my rent and my other expenses. It’s such a cloud over my head.

[@AscendFinance]

Sorry for the late reply, I wanted to follow up- what ended up happening? Did you switch to a chapter 13?

[@littlemermaid7408]

@@AscendFinance No worries! I did not do either. I plan to use my commission money to pay off my debt or bring it down as much as possible. Thank you for the follow up.

[@AscendFinance]

Absolutely, my pleasure!@@littlemermaid7408

[@KeyonniAdamsDPT]

What credit card companies are likely to sue?

[@AscendFinance]

There are quite a few creditors. If you have questions, give us a call at 833-272-3631!