Have you ever wondered what debt settlement companies do to earn their enormous fees?
Well, let’s take a look:
Prospective client calls into or is called by the debt settlement company
Company explains program, fees and, if lucky, explains all the negatives
Client choses to enroll into program and gives banking information or sets up trust account with debt settlement company
Client choses a start date, stops paying creditors and payment withdrawls begin for the debt settlement company’s fees
Some debt settlement companies send out notices to creditors notifying them that you are in their program (this practice by the way may increase lawsuits and creditor calls)
Money slowly begins to grow in your account for settlements while the debt settlement fees are being withdrawn
Months or perhaps even a year down the road you may have enough money in the account for a settlement
YOU call the debt settlement company to let them know you have the money and they pick up the phone and begin working on a settlement.
Looking at the steps above it appears to me that anyone can stop making their credit card payments, put money away, wait a few months and start talking to creditors about a settlement. In fact, creditors are even starting to send out settlement offers to delinquent clients with no contact at all.
I’ll give some of the settlement companies the edge on negotiation experience, but in today’s economy where creditors are sending out the letters with virtually no contact is it really needed?
A recent Consumer Report special on debt settlement companies found that most creditor’s settlements weren’t any lower for settlement companies than a normal consumer.
It’s no wonder state Attorney Generals from around the country are looking into these companies. Most charge several thousand dollars for doing something you could potentially do yourself.
If you are looking for a miracle cure for your debt woes you are in the wrong place. Debt settlement is a tedious process that requires patience and tenacity. But when you get that settlement letter in the mail for a fraction of what you owe it all becomes worth it. It all begins with communicating with your creditor. If you ignore the issue you’ll only add to your problems. Creditors are hurting financially more than ever and if it can be avoided they would rather work with you than take you to court and get a judgement or garnishment. But they can’t work with you if you don’t communicate with them.
Debt settlement with creditors has been going on for a few decades now and until recently has been relatively behind the curtain. It’s front and center now and garnering probably more attention than the Debt Settlement companies would like. It’s so common place now that creditors are starting to set up links on their sites so consumers can begin the process themselves. It’s even peaked the eyebrows of the FTC and attorney generals across the country, some of which have sued debt settlement companies for deceptive practices. This is where iSETTLEDit.com comes in. We give you the tools and resources to control your own financial future without relying on companies that are less than trustworthy.
Debt settlement only works if you are delinquent so if you are not and don’t wish to be, you again, are in the wrong place.
iSettledit.com has brought together the most resources and tools to help you settle debt than any other site on the net.
Access crucial experiences in the sphere of what is online forex trading – this is your personal knowledge base.
RSS FEED
