What is the best debt settlement for $12,000 and lower debt?

I recently switched jobs making significantly less money. Now I am past due with bills and am getting some pretty rude calls from creditors. I want to pay them but am having a hard time. I have been seeing commercials about debt settlement and needed some help deciding who to go through. I have a little less than $12,000 to pay off. Please site sources when you can and THANKS ahead of time!

What is the best debt settlement for $12,000 and lower debt?
The best thing to do is get a copy of "The Total Money Makeover" by Dave Ramsey.





Get yourself a written budget, where everything you make next month is spent on paper this month.





Nobody gets a dime until the essentials are paid for:


Food, shelter, utilites, transportation.





Then see what you can cut. Food = Beans %26amp; Rice. No restaruants, no steaks, etc.





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To quote from Dave Ramsey's web site:





History also teaches us that debt wasn't always a way of life. In fact, three of the biggest lenders today were founded by people who hated debt. Sears now makes more money on credit than on the sale of merchandise. They are not a store; they are a lender with some stuff out front. However, in 1910 the Sears catalog stated, "Buying on Credit is Folly." J. C. Penney department stores make millions annually on their plastic, but their founder was nicknamed James "Cash" Penney because he detested the use of debt.





Henry Ford thought debt was a lazy man's method to purchase items, and his philosophy was so ingrained in Ford Motor Company that Ford didn't offer financing until 10 years after General Motors did. Now, of course, Ford Motor credit is one of the most profitable of Ford Motor's operations. The old school saw the folly of debt; the new school saw the opportunity to take advantage of the consumer with debt. "
Reply:Hi,


Please click my profile to read the answer.
Reply:Just consodilate your bills through companies like CCC Credit Counseling. They'll give you 1 payment to them, and then dispurse it. And the cool trick is the CC companies won't accept you till you skip a few months. Your credit will fall downhill till its paid off, but stop stressing...people are out there to help!
Reply:Never, ever do a home equity loan. If you put that money on your house and something happens where you can't make the payments they will come and take your house.





Most if not all the debt considations companies are a scam. What they do is not pay your creditors for months and then try and settle for less. No special skills. They just don't pay.


Save the fees they charge and do it yourself.





Also, if you do use one of these companies and they don't pay your debt. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hired.





Check out daveramsey.com and listen to his radio show. He has lots of great advice on money and debt. It doesn't cost a dime to listen.