Hi,

I'm trying to get rid of credit card debt. I'm currently with care one services. They consolidated my debt.

I got a call from American Debt Arbitration today. I enrolled, but I still have 3 days to cancel. Has anyone ever been enrolled in this?

They charge about $50 to enroll, and then they negociate with your creditors, but I was told my creditors won't get any money until 6 months into the program. I was told that I would get a lot of calls from my creditors, but I was told to direct the creditos to them. They set up a "special" savings account to accumulate money and then they said they would settle my debt with my creditors. But my first 3 monthly payments go for them, not my savings. Then the rest is for my account, to start accumulating, and for them to settle later.

It sounded ok at first, but now I don't know.

Any advice? Should I cancel?

Thanks!

Cancel them. What they are doing is holding on to the payment for a larger payment, and then they will negotiate the payment that they have up front. Keep on the Care One Credit Counseling service, this will stop creditors from calling you because they are getting a payment every month. Not only is American Debt doing something completely stupid, they are ruining your credit also! These guys are not helping you...

well this is an older post and it may be too late but:
cancel as soon as possible. no payment go to your creditors, which means increased interest rates and late fees for 6 months. The average financial institute will only hold a deliquent account for 6 months, after which its sent to a collection agency (which allows ADA to settle for less than the full balance. But due to the fees will not be much lower than before you signed with them), or legal placement (litigation, they will take you court and seize assets, i.e. freeze bank accounts, liens on property, or garnish wages). The entire time this is happening, your credit bureau is receiving the beating of a life time. Your best bet is to call your creditors and explain the situation and see if they can offer some assistance. If they cant, then continue making payments and contact a NON-PROFIT credit counseling service. They will make payments to your creditors not settle with them.