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7 Responses to “what happens if you stop making paments to debt consolidation organization?”

1. Ben on July 12th, 2011 at 8:31 pm

   You should definitely call the company and explain your situation. According to several postings I have read, they will temporarily lower your payments or allow you to defer (skip) a payment or two as your get back on your feet. But you must call and arrange this with them – and I’d recommend sooner rather than later. You don’t want to wait until your situation gets worse or more complicated. (An once of prevention is better than a pound of cure!)

   Of course, you should keep in mind that debt settlement works by saving-up lump sums that are offered to your creditors in exchanged for a reduced settlement amount, so lowering or skipping payments may prolong the amount of time it takes to reach the amount needed to settle your accounts. However, this is still far better than quitting – especially since you say you’re only a year away from being out of debt. It would be terrible to lose a year and a half’s work at this point.

   Call the company. Talk to them and tell them that you want to make it to the end, but things have gotten financially difficult for you. Like all relationships, communication is key.

2. Cynthia M on July 12th, 2011 at 8:31 pm

   most likely.

   You will violate the contract you signed. Then collections. Then Court.

3. kit on July 12th, 2011 at 8:31 pm

   The company will try to contact you on why you stop paying them. Call up the company and explain your financial situation. All your creditors accounts will be frozen and uncollected. You just have to find a job even a minimum wage to pay at least something.

4. Mia Jacob on July 12th, 2011 at 8:31 pm

   If you stop making payments then the amount of money that is being collected as lump sum will get reduced and they might not be able to negotiate and settle with your creditors. Talk to them and they will advice on how you can manage your finances. I took help of freedom debt relief to settle my debts and they timely advised me on managing my finances which helped a lot.

5. effervescentevanescence on July 12th, 2011 at 8:31 pm

   You should first contact freedom debt relief to let them know about your situation. If it is temporary, they will probably be able to work with you. If your inability to make the monthly payments is permanent, you have little options. The success of debt consolidation organizations is predicated on the consumers ability to make a monthly payment. Either way, I would call freedom debt relief directly and they will go over your options.

6. iliveiride on July 12th, 2011 at 8:31 pm

   Contact their customer service department immediately to see what options you may have. If you don’t and your payments stop they will most likely close your account and you will be back at square one.

7. Wee_Willie_Winkie on July 12th, 2011 at 8:31 pm

   You get sued… and they finish the job of ruining your credit that you started…