Find Out What Debt Settlement Companies Are Not Telling You

0 Comments | Rating: 0 | |

Are you in heavy debt, and seeking help from debt settlement companies to help you clear your debts?

Listen to these words of warning because it could save you thousands of needed dollars in the long term , which can then help you to actually pay off your debts instead of the unscrupulous debt settlement companies.

First of all, do not be mistaken, there are big time debt settlement companies that are good at their jobs. They will help you, as well as themselves, but at least, you can be sure of positive results. The problem is for every two good debt settlement companies, there are about 10 bad debt settlement companies that will cheat you and rob you blind.

These debt settlement or debt elimination companies that act like debt professionals or experts are what you should watch out for. Below I will show you how they operate and con people out their money.

First of all, they will sweet talk you into signing an agreement that favors them, not you. You will be charged a monthly fee plus an admin fee to the tune of a few hundred dollars, that supposedly will cover the cost of setting up your account.

They will promise to talk to your creditors and negotiate your debts, but even if they collect your monthly and a debt service amount, no payments will be made to the creditors? Why? This is because any settlement is only possible if the final amount agreed upon is fully paid, and cannot be partially paid. Thus, these debt settlement companies will put your money into an account until it reaches the full amount agreed upon.

Does that sound like a problem? At first glance, not really, right? Except creditors will not stop interest charges or put your account on hold until the agreed amount is paid off. The meter will keep running everyday you are not paying. If this continues over a period of over 3 months or more, you're in danger of being sued by your angry creditors, and your pay check can be put in serious jeopardy!

Furthermore, any monies you may have paid to the debt settlement companies remains with them in an account you probably have no access to. In essence, you're giving them a free meal ticket, while you are left holding the bag. They have no obligations towards your creditors at all. They can actually disappear into the wood works, and your creditors would not even care. The reason for this is because the money owed to them is still your problem.

Let suppose you owe more than one credit or lending company, then this complicates everything even more! It's like double trouble, and you will be caught in a deep, deep hole with very few options available.

If you really need to work with debt settlement companies, then you need to do your homework. Research the company very well. Check if they have any pending cases similar to what was discussed above. Any documents you receive, have an attorney go over it thoroughly. Debt settlement companies that are aboveboard will not object to any of these moves, and they will even provide you with referrals and any other information you may need.

If the debt settlement company you are talking to suddenly does a disappearing act on you while in the middle of your negotiations, then count yourself lucky as having escaped from a shark.

I have done some research on these companies, and here are some of the debt settlement companies that have pending investigations against them from consumer complaints in the California area are Financial Rescue Services, Debt Legal Services, National Consumer Debt council LLC, and the American Debt Relief.

If you want, visit the Better Business Bureau at www.bbb.org to obtain accurate and updated information on debt settlement companies in your area that you should steer clear of.