1/6/2010 6:31 AM (PST)
Teresa,
Don't fall for the debt settlement scam. These companies promise to make huge slices of your debt vanish but it simply doesn't happen. They say you'll make one easy monthly payment, and your will, but the payment will be to the company and you'll be told to stop paying your creditors. Guess what happens when you stop sending the credit card companies checks? They do what all creditors do to collect their money--they file lawsuits, they turn the matters over to collection agencies and they tack on more charges for interest and the like. Oh, I forgot to mention that your credit will also be destroyed in the process.
The idea is that by not paying, the creditor will think you're in financial distress and will be inclined to settle for less. Of course, they won't settle for less and also accept monthly payments. They want a cash settlement. Problem is that by the time you pay fees to the settlement company and try to save the few pennies left over each month, it would take years to accumulate enough to make a cash settlement offer.
Few ever complete these "plans" and a significant percentage wind up filing bankruptcy to get the lawyers and collectors off their backs. Almost all wind up owing more money at the end than they did in the beginning. The companies though do well because they keep your fees.
BTW, it's important to know where you reside because you should also consider the recourse you may or may not have when things go wrong. Please complete your profile.
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2/11/2010 9:18 AM (PST)
I disagree with you Teresa. Debt Settlement can provide a very valuable service if you are facing a difficult financial hardship and want to avoid bankruptcy. I have been with Fast Track Debt Relief for 16 months now. They have settled 3 of my credit cards for an average savings of 65%. This was even better than they had me budget for in the begining of the program...so I'll be out of debt even sooner.
I highly recommend Fast Track Debt Relief, inc. However, if you do decide to go with a different company just make sure they are a member of TASC - (the association of settlement companies). There are a lot of scams out there..Be careful. I spoke with about 15 companies before deciding to use Fast Track Debt Relief, Inc.
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5/17/2011 3:33 AM (PST)
Tammy, in my opinion TASC itself is a scam, so relying on them to tell you who is a good debt settlement company is very bad advice. Recently they have revamped everything including changing their own to run as far away from their bad reputation as they can. Now that they have been outed for what they really are. Rule number 1. Stay away from any company who is a member of TASC. Rule number 2. Stay away from most debt settlement companies. Rule number 3. Get unbiased advice about how you should resolve your debt problem before talking to sales people from any company.
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5/17/2011 3:38 AM (PST)
Meant to say changing their own name. They are rebranding themselves as the American Fair Credit Counsel. Now they fancy themselves as consumer advocates according to the new brochures. Funny they fought the new consumer protection laws banning upfront fees tooth and nail. Now that they are required by law to not charge upfront fees, they change their tune, and pretend they were for it all along and they are just looking out for consumers.
TASC = American Fair Credit Counsel = Same Sham, different name
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