Did I make the right choice with debt consolidation?

A

AstroSky13

New Member
Hey, so I just started with a debt consolidatio n program last week. I’ve been hearing some not-so-great things about these companies, but honestly, it’s given me a bit of hope. But now I’m feeling stuck. Should I bail now that I’ve just started? Or should I give it a shot? Have you heard of anyone having success with this? The debt is really taking a toll on me physically, so this seemed like the way to go.
 
Let’s break this down simply. Debt management companies might present Part 9 debt agreements as debt consolidation, but they’re actually a form of bankruptcy. Before signing anything, make sure you fully understand what you’re agreeing to and how it could affect you. If it aligns with what you need, it can definitely simplify your situation. Just take your time to review the details carefully!
 
I tried this about a year ago, and honestly, it's been a bit of a headache. I wish I had just handled it myself. Now, I've even got a court summons for one of my credit cards in the program. They did pay off two of my debts, which I enrolled in the program, but here's the thing I had no idea that if they settle more than $600, you get a 1099 once it's all settled and paid off, and you have to deal with it at tax time. If I could go back and do it all over, I’d totally do it the Dave Ramsey way.
 
I was just about to share something that’s been weighing on me what happened with my mom and her Macy’s credit card. They didn’t transfer it, and she ended up getting served. It’s been really tough to see her go through this.
 
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