Washington Business Daily

Is Debt Arbitration a good way to go?

Has anyone dealt with Debt Arbitration, what can I expect as a result of using their services?

Public Comments

1. Debt arbitration is commonly referred to as debt settlement. If all of your unsecured debt accounts have been turned over to collections, then it could save you some money. However, there are some things you should be aware of before attempting to settle.
2. I suggest going to a Debt Counseling group instead. It has no affect WHATSOEVER on your credit report. Score will only go up, never down. They will work with your creditors to lower your interest rates AND monthly payments. All of your monthly payments are combined into one payment that you send to the debt counseling group. You only have to worry about 1 due date, 1 stamp, 1payment, etc. They can create a plan that will pay your debt off in RECORD time, as little as 3 or 4 years, as apposed to the 50 years it will take you on your own. The whole process is very quick. Mine got set up in three days. In about three months, your accounts will re-age and the collection calls will stop. There are no additional fees. You pay your debtors, you don't pay an outside company. They also offer lots of financial education. They will work with you to help you learn about budgeting, banking, saving, investing, the different financial stages of your life, etc, and in general do their darndest to keep you from making the same credit no-nos. The only bad thing is you can't take out new credit lines while you are working with them. The group I used is www.debtcounselingcorp.org. They are nice, knowledgable, and helpful, and never come across like they are judging you.