They will stay low in 2009 and probably part of 2010, but they will slowly increase and frankly I expect a round of very high rates

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There is no way to know what the rates will be in two years. If people could predict rates and housing values accurately, the current mortgage meltdown would not have occurred. What I would suggest is that you contact a local HUD housing counseling agency that does first time homebuyer counseling. You can go to HUD website to find one, or you can call us at 800-548-4545 and we will help you find someone local. The main thing that the course will do is to teach you to recognize if and when you are ready to buy.

I would say that well over half of the settlement companies will try to convince anyone they talk to that a settlement is good for them, but it would be unfair to label the entire industry as illegitimate.

There is a time and a place to settle your debt. Unfortunately, most people that are lured into that option are not told about the negative aspects of a debt settlement program, and often the positives are exaggerated. Good credit can be destroyed unnecessarily and you can expose yourself to lawsuits.

If settlements do make sense for you, then you have the additional burden of finding a company that will not overcharge and will do a good job. You also need to consider whether you can settle the debts on your own. Many people pay large fees for something they can do easily themselves.

The biggest question you need to ask is: what solution is best for you? Are you current with your payments? Are you past due but could afford the payments if the minimums were lower? Have your accounts all gone to collections agencies and you are now dealing with possible lawsuits and garnishments? The best decision for you is tied in to all of these questions and more. Once you have determined your best course of action, THEN you can try to shop for a reputable company that provides the service you need. Investigate their rating with the BBB. Check with the regulator for their industry in your state to see if they have a pattern of complaints. Find out if they belong to any reputable professional associations. See if they have been in business for several years.

CCMS can help you with the initial part, which is doing a free budget counseling session. From your budget and the current status on your accounts, we can make recommendations on the best direction for you, and can even help you find a reputable servicer or attorney (yes, in many cases a discussion with an attorney is recommended). If you feel like I am just trying to lure you in to our services, then find a local non-profit credit counseling agency and put them through the same tests (BBB, State Regulator, national associations, time in business) that I mentioned above, and contact them to do a budget with you. Any reputable agency in our field will gladly take whatever time needed to do a thorough session with you and then make recommendations.