owe 8000.00 in credit debt. thinking about letting new dawn debt collector co. handle my debt....
is this a wise decision?
Don't do it. There are tons of scammers around like this that offer to help you get your payments lower, wipe out a huge portion of it etc. They will ask you for money up front and/or take a big percentage of your payments just putting you in more debt. It has been proven over and over that in this economic climate you can talk to the credit card co. yourself and get better results. Tell them you don't want to walk away from the debt but....they will work with you rather than take the loss. Also there are non-profit companies that help people in this situation that don't charge a dime. They too call the creditors and ask for compassion and assistance. I know plenty of people in your shoes, don't hire a debt collection company, you will inevitably be in worse shape than when you started.
Do you research before you do that. I wouldn't trust them. You can do the same thing they claim to do. You can call the credit card companies and negotiate the balance and reduce the interest. You can also do some other things such as get them to "validate" the card agreement. Send them a certified letter asking for such, if they can't validate, you might not have to pay the debt back, but don't take my word for it, do your research.
Don't know anything about New Dawn, but this is an industry with 95% scammers. My advice: evaluate your whole financial picture, not just the credit cards. Depending on your situation it may be smart to stop paying and save as much as you can. In about six months call them and offer 25 cents on the dollar. They will gladly settle for 35 to 40 cents, and you should have it saved. You can do all of this yourself, but should hire an attorney right after you make the settlement offer to make sure it gets documented right.
I agree with the other guys. You can personally contact the credit card company and work something out. Then you don't have to pay a debt collector. Get everything in writing.
DON'T DO IT. I work as a paralegal in a bankruptcy firm and 99.9% are scams. They will charge you a ton of money before they pay your creditors (if they even get to that point). My advice: Make sacrifices so you can pay off your debt. Spend less, get a part time job, sell something on Craigslist or eBay, whatever you can do (that's legal) to make a little money and start paying it off.
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HubMob Weekly Topic: Getting Out of Debt
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