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Question: Jim has over $100,000 in credit card debt. He makes $70,000 a year and asks Dave what he thinks of debt negotiators. Nothing but bad things, as Dave explains.
Dave Ramsey's advice: The only time a credit card company takes less than what you owe is if they think they won't get paid. If you go to a debt settlement company, they have you pay them a monthly amount. Most is their fee, and a little goes into a savings account that they will use to settle with the creditors. But the collectors won't get paid for six months, and it will destroy your credit. They are scum and they rip you off.
Instead, I say get together with your family and figure out a plan to live on beans and rice and make big payments to the collectors. They can sue you and take a lien against your property, but they must sue you first and win and then take judgment. If you have no payments but the house, you have no excuse to not do this and clean up the mess you've made. List your debts smallest to largest and attack the little one, then knock them out one by one. That's the best plan for you.