DEBT SETTLEMENT COMPANIES

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Comments (8)

Mary inTampa in Tampa, Florida

66 months ago

We are all in a financial mess with our personal finances today. Don't get involved with a debt settlement company.

Six months ago I was going to get involved with Credex America. They were going to take $450.00 directly from my checking account, and when I had enough in my account (16 months to get $7,500), then call Chase (2 cards) and another one to settle with them. Then I got their contract on the day of the first withdrawal. I had an absolute panic attack.

It would have taken ten months at least to get enough in my account. I wasn't supposed to have any contact with my credit people. Of that $7,500, $3,500 was going directly to Credex America. None of the money was refundable. Most likely within four months Chase and the otherw would have filed a lawsuit against me.

Being in the legal field, as soon as I read the contract, I called and canceled my contract (yes, contract), sent them a letter certified mail explaining why, ran to the bank in the morning. They had already got the first withdrawal. My letter was pretty strong and they returned what they had taken.

Since I had been out of work for over seven months, I ended up filing bankruptcy. But at least the credit card matters are done -and I have not given $450.00 a month to a fraudulent company, money that would have never got to my credit card people.

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Mary inTampa in Tampa, Florida

65 months ago

Job website or not - it's a forum for moral and financial support. Why did you comment?

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SRQ Willie in Sarasota, Florida

64 months ago

Mary - Being in the legal field you should have known better. Having worked for one of these outfits (briefly mind you...I do have morals) let me tell anyone who reads this how the game really works. First of all they get YOU to send THEM ALLLLLL of YOUR credit card info, social security # and your bank account info....DO YOU SEE WHERE I AM GOING NOW !!!! They get you set up on a monthly payment to settle your accounts...these funds are taken out of your account each month (you have already signed an agreement to let them do it). The salesman and company that initially called you will make a 10 to 15 percent commission

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SRQ Willie in Sarasota, Florida

64 months ago

and take this money in monthly payments PRIOR to settling ANY of your accounts. So, if you had 50K in debt, they will have taken out of your account $7500 BEFORE they start doing anything for you. On top of that the processing company that allegedly is the law group settling your accounts is taking out $75 to $85 PER MONTH for their processing fees...."processing what?' So if it takes you 36 months to figure out that they are somewhat taking you to the cleaners....not the bank LOL LOL !! $85 x 36months equals $3060 plus the $7500 they already got is ....well you get the picture.

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SRQ Willie in Sarasota, Florida

64 months ago

Supposedly they do settle your accounts for you. After they get enough $85 per month fees from you before you cancel the program.

Just so you know, your creditors will settle your accounts with you by yourself. The key is you will have to settle in one large payment in full OR 2 to 3 large payments. It all depends on your debt load and how well you can negotiate.

BOTTOM LINE - go to Home Depot and """ DO IT YOURSELF "
Hope this helped whoever reads this forum..SRQ Willie aka -MR. Morals

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Epic_laser_storm in Lady Lake, Florida

46 months ago

I used to work as a claims adjuster (the not so dirty term for Debt collector.) When speaking with people regarding their debt, most had the same response, "I'm going to do through a Debt settlement company." I advised the people that there wasn't a need to do that, for they can do EXACTLY what they do [...] all by themselves. They would save a great deal of money just doing what was inevitably going to happen. As long as you work with the adjusters reasonably, they will settle it out for you. The whole reason I had joined the company I worked for was to help people out of their holes. Not all collectors are jerks. If you are polite and compliant, they, hopefully, will be in turn.

Willie was 100% correct. I really fail to see why someone would ever pay another person any amount of money over something that could easily be achieved through ones own action. I suppose it being that most people don't understand that ALL they have to do is negotiate. You don't need some special license or work for a company to be able to settle your OWN debt.

Don't let them bully you around, either. Just remember, YOU CAN DO IT. Nothing is insurmountable. As long as you remain positive and tell yourself that "you can," nothing should stop you. The last part was more general than specific.

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debt pro in Boynton Beach, Florida

42 months ago

Well I have work in debt settlement, the problem I find is everyone think they know whet they are talking about, most creditors are not willing to work with the consumer who has been paying on there account, you have to be in default in order for your creditors to be willing to settle with you, a settlement company take more debt to a creditor to settle a larger debt amount at between .45 -.55 cents on the dollar... you didn't get in debt over night, so you won't be debt free over night, you pay a contractor to perform there work,you pay your waiter 10% just to serve you food etc.. we are getting your life back in two years or so, and we don't work for free, It takes some time to go into default until your creditor realize the only way to get their money is by settling to get something instead of nothing, To Willie if consumers had a large amount to pay, they wouldn't be in debt to begin with! no bulling around, most people enlist us to help them, why do we need to bully anybody, Collectors get paid a commission to collect money that you didn't pay to your creditors...So if you have more than one credit card, Private student loans or any unsecure debt that reach the amount of 20,000 or more, a debt settlement company can help, but you have to be patient while we go to work for you, it could be 6 months to a year before you can start to settle your accounts, because the money you set aside has to grow to a amount we can negotiate with...

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mary in Lutz, Florida

42 months ago

This sounds good - in theory. Problem: MOST (70 percent?) of the money paid by the Debtor goes to the debt collection company. By the time the company even contacts the creditors the creditors have filed a lawsuit against the debtor. The debtor's credit is already ruined. The creditors get a judgment against the debtor. ALMOST ALWAYS, the debtor is in worse financial shape after getting involved with one of these companies.

Best solution: Use a non-profit debt relief agency which is authorized.

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