[rmalik]

What is your opinion about these type of companies? Are there any legitimate ones out there? What alternatives can you suggest to someone who is in the process of cleaning up their credit situation, but need some emergency funds to take care of some financial situations looming now? My suggestion was to get their credit reports and start contacting their debtors to make arrangements. I had no suggestion about immediacy, though. No friends or family they can borrow from.

[NLVgal]

To clear up the credit, have them contact Consumer Credit Counseling Service of Nevada and Utah. It's a non-profit.

As far as short-term lending goes, it's all usury.

If they have no friends or family to borrow from, sadly, there's probably a reason for that.

[airics]

when it comes to credit and credit reports, it is a 2 edged sword.... .if you make arrangements with a debtor and give them anything, it starts the clock over......if you make arrangements with an ORIGINAL lender to pay in full for less than owed, 1. it won't raise your score and 2. the irs collects taxes on the amount of difference from what you owed to what you paid (earned income).... once the debt goes to a collection agency, you cannot get the original deleted even if you pay the debt collector.. (they pay pennies on the dollar hoping to recover something).. In Nevada, the statute of limitations for open ended (credit card) is 4 years.. However, it will stay on the report for 7. It isn't collectable after 4, they may sue but you win using the statute of limitations defense. Filing bankruptcy may not help either, its on your report for 10 years. Making arrangements will do nothing. If its past charge off, let it go....
If you own a home in Nevada and it is homesteaded, a credit card company can't lien the home...