dο thе debt settlement companies really hеlр уου out οr аrе thеу јυѕt a scam?
Stay away frοm аnу "debt consolidation" company thаt promises tο сυt уουr debt іn half through debt settlement….Thіѕ іѕ a risky tactic οf deliberately сеаѕіng аll payments tο creditors аnd forcing уουr accounts іntο default tο attempt settlements. Yου pay a monthly fee tο a debt consolidator….thіѕ entire fee goes towards building a settlement account аnd tο thе consolidator’s fees tο “settle” уουr accounts іn thе future. Yουr credit card companies wіll deliberately nοt bе paid ѕο thаt аll thе accounts wіll default/charge-οff ѕο thаt thеу саn attempt settlements аt around 50%. If уου аrе current οn уουr accounts, thіѕ process wіll rυіn уουr credit rating fοr sure. Debt settlement іѕ lіkе a roll οff thе dice wіth уουr finances…Yου саn never predict hοw уουr creditors wіll respond tο thе deliberate defaulting οf уουr accounts…thеу mіght settle аt 50%…οr thеу mіght serve уου a summons, take уου tο court…аnd іf thеу win, уου сουld bе looking аt wage garnishment.
None οf thеѕе “debt consolidation” firms hаνе thе power tο force уουr creditors tο accept settlements. Yουr creditors hаνе thе rіght tο refuse thеѕе terms аnd take уου tο court.
http://online.wsj.com/article/SB122394458494631223.html
http://podcast.mktw.net/wsj/audio/20081013/pod-wsjlaise/pod-wsjlaise.mp3
If they ask for money up front, they’re a scam.
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Most are a scam. If they are not a member of NFCC, they just take your money. to find legit ones go to nfcc.org
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Best scenerio, they take your money and let all your accounts go 90 days past due. Then they offer lowball settlement offers. Not only does this trash your credit, but many credit card companies refuse to play and will immediately sue you. The settlement company won’t be around to help.
There are a lot of scam credit repair/settlement companies that just take your money and do nothing.
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The AARP magazine did an article on these companies recently. The bottom line: "We’ve never found one that is legitimate."
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Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.
http://online.wsj.com/article/SB122394458494631223.html
http://podcast.mktw.net/wsj/audio/20081013/pod-wsjlaise/pod-wsjlaise.mp3
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to be honest with you the debt settlement company’s work for the credit card companies
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Yes they can work for you. You have to have a little discipline though. What they’ll do is set up a fund that you can make one monthly payment too. Then they will go about trying to make settlements with all your creditors and then settle out of this account. Find one that’s been around for awhile and has established relationships with the companies and that can be a great thing.
You can generally expect to save about 40 – 60% in the long run. These companies would much rather get a little bit of the money then none at all or go through other costly methods.
Always make sure that the company is a member of TASC, that’s the association of settlement companies. Never touch anyone that’s not.
check out http://www.debt1solutions.com they can at least give you a free evaluation and let you know what they can do for you. I know people that have had success with them.
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Debt blogger
http://debtgazette.wordpress.com/
All very interesting answers. One obviously works for a debt settlement company. Credit counselors have been known to be paid by credit card companies so I’d think twice before jumping onboard with one of them.
Debt settlement companies are dangerous. Check this out:
http://mariedanielservices.com/industry_chatter.html
This cites several media sources that expose the dangers.
Debt settlement itself though is a good option. It’s a good alternative to bankruptcy. But, you can do it on your own with matching (sometimes even better results). On the same site noted above, do some reserach on do-it-yourself debt settlement.
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Prior employment as management level employee at leading debt settlement firm
As you know, debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount. So it is better to seek help from any reputed debt settlement company. Such companies can handle it properly as they are experts in that field. I took help of freedom debt relief to get rid of my debts. I have joined their debt reduction program one year back and almost debt free now.
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http://www.freedomdebtrelief.com/
I used this company:
http://www.thecashcrash.com/link.php?id=2
They helped me out tremendously. I now have one payment per month which is much easier to handle.
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Yes they really help you with your debt problems.
I tried a year before. It helped me a lot. These companies help you to solve your debt and also many of my pending medical, credit card bill.
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http://www.loansstore.com/debt-settlement