Are debt settlement companies a scam?
Submitted by seanmick8 on Sun, 01/27/2008 - 3:47pm.
New York
I was thinking of signing up with a debt settlement company but I have heard the debt settlement companies not what they seem. They promise to settle your credit card and unsecured debt for half or less than what you owe. I have heard what they don't tell you is that you usually get sued, get your wages garnished, and that the debt settlement companies over report what they actually save you while charging you a huge fee. In addition, I have heard that your savings are reported to the IRS as income and that your credit report is trashed. Supposedly their seemingly caring sales people are paid high commissions. Apparently you can negotiate with your creditors and be just as successful while saving the thousands of dollars these companies charge you. What I want to know is if all that is really true about these companies and can I actually negotiate with my creditors myself and save thousands in fees. I need the scoop from someone that is honest and knows the truth about these companies
_____________________
Visit My Site
Debt Consolidation
Sarah Once you are about 3
Submitted by slarson on Tue, 01/29/2008 - 7:43pm.
Sarah
Once you are about 3 payments behind on your credit card...call your cc company and ask them for a settlement...tell them what the situation is if you haven't already, and tell them where you are coming up w/ the funds for the settlement. It's not that hard to do...just call and ask...and they will probably give you about 90 days to get all of it in....
I'd suggest the same if you
Submitted by jmt on Thu, 05/15/2008 - 6:40am.
I'd suggest the same if you are coming up on 3 months of being behind on your credit card payments i'd call them to see about making payments or maybe seeing if they could lower the monthly minimum. If that doesn't work then go with a debt settlement company.
If you plan to negotiate
Submitted by jjanney on Tue, 06/17/2008 - 3:09pm.
If you plan to negotiate your own debt settlement, you should get the DIY Debt Settlement Kit first to make sure you do everything correctly. While the idea seems simple, you will be dealing with very clever and cunning creditors and/or debt collectors. You need to make sure you understand all the different steps in the process, paperwork involved, and other important issues.
Their not scams they just
Submitted by jmt on Tue, 07/01/2008 - 7:14am.
Their not scams they just negotiate your payments i dont think they do anything you cant do on your own, you could find a company who has better interest and also 0 balance transfers to refinance any loans and get lower payments.
Hello. I would like to
Submitted by F.Maffertone on Mon, 09/22/2008 - 5:16pm.
Hello. I would like to recommend you some helpful information about debt settlement program.
Few months ago I had a very big problem with debt. This almost ruined my life and my business but these guys helped me to avoid bakruptcy.
I very appreciate this.
A legitimate debt settlement
A legitimate debt settlement company will provide you with disclaimers that inform you about the possibility of creditor or debt collector actions, including the possibility of being sued and that the process of negotiating and settling debts does damage your credit. This is true whether you negotiate your settlements yourself or you hire a professional to do it for you.
You half-correct about the tax issue. You may owe taxes on the cancelled debt above a certain amount if you were not insolvent (technically bankruptcy) at the time the portion of the debt was cancelled. So, you may not actually owe taxes on cancelled debt and if you did, isn’t that better than continuing to be in debt?
Isn’t being out of debt more important that your credit score? Credit is how you get into debt in the first place.
I noticed that you link back to your debt consolidation site. The site is actually a consumer credit counseling site (from the looks of it, I don’t know too many non-profit mortgage lenders) offering debt management plans. First, debt management plans are not a form of debt consolidation, they are payment consolidation plans. There is a difference.
Secondly, I’m interested in knowing the following: Do you inform your program applicants that consumer credit counseling’s debt management plans have a 75% drop-out rate and that many of those who drop-out end up in bankruptcy (or in a debt settlement program if they can avoid bankruptcy that way)? Do you also inform your applicants that you get paid based on how much you can successfully collect from your “clients†through the “Fair Share†program (essentially making you a non-profit debt collection company)?
Debt settlement companies charge their clients a fee because they work for their clients, not for their creditors.
Don’t misunderstand me here… debt management plans are great for people who just need help getting organized. However, they are rarely a good solution for people in financial distress because they simply don’t provide much meaningful financial relief (except lower interest rates, if that). With 3 out of every 4 people failing to complete their DMP, it doesn’t really have a good track record, either.
You other point is a good one: people can negotiate their own debt settlements. However, anyone considering this needs to get the Do-It-Yourself Debt Settlement Kit because it provides all the information you need to negotiate your own debt settlements. Without this kit, you’re going into these negotiations much less equipped with vital information you would otherwise have.