Debt Settlement Can Hurt More Than Help

"Early Show" Financial Contributor, Vera Gibbons On Pitfalls Of Debt Settlement

(CBS)  Americans are burdened with more credit card debt than ever, so it's no surprise they're turning to companies who promise to help reduce debts -- for a fee.

Early Show financial contributor Vera Gibbons shared some warnings about using those companies on the show Tuesday.

The companies' ads are plastered across TV and radio, offering to "cut your debt in half" and other fantastic-sounding promises. While the commercials sound enticing, many consumers are hurt by the providers' shady practices, Gibbons observed.

"In the past, home equity or year-end bonuses could be used to help pay off debt," she said. "But those options have disappeared, along with the ability to easily obtain a loan or additional credit cards. This makes many people struggling with bills prime targets for debt settlement companies."

The number of such companies has increased dramatically over the past couple of years. Unfortunately, the number of complaints against them has grown, as well: The Federal Trade Commission says gripes more than quadrupled between 2006 and 2007. State attorneys general report being flooded with complaints, too.

In North Carolina, complaints doubled last year, while in Florida they tripled, spokespeople for the state attorneys general said. And in New York last week, Attorney General Andrew Cuomo launched an investigation into the companies, subpoenaing 14 from across the country and one law firm.

"Today, millions of hardworking Americans are finding themselves imprisoned by debt. In response, a rogue industry has stepped in, offering consumers false hope, charging tremendous fees, and leaving them in a worse financial situation," Cuomo says.

Other consumer advocates agree that these companies are bad news. And most of them have an "F" rating from the Better Business Bureau.

What are debt settlement companies offering, and why are many of them so bad?

In general, Gibbons said, the companies agree to contact your creditors and negotiate reduced balances.

Sounds good so far, right?

Gibbons explained where the trouble begins:

For starters, this service will cost you a lot. Most commonly, the companies will charge you 15 percent of your total debt up front. You have to pay it before you see any results. They also charge you monthly fees.

If the forgiven debt totals $600 or more, you'll owe income taxes on it.

"Paid by settlement" will appear on your credit report, next to your accounts. That hurts your credit score.

You might still be tempted to give one of these companies a try, figuring you may still wind up owing less money than you do now.

But consumer advocates warn that a majority of the companies can't or won't deliver on their promises to reduce your debt. The National Foundation for Credit Counseling recently explained that, "A settlement company may suggest that you stop paying your creditors and instead begin making deposits into a special third-party account. The settlement company will attempt to negotiate a settlement offer with your creditor once enough money relative to the debt is on deposit. This may take six months or more, although the exact length of time will vary with circumstances. During this time, the balance on your debt can continue to grow if interest and various penalty fees continue to be charged by your creditor. As a result, you may owe more than when you started and your credit may suffer."

Even worse, there have been many instances where none of this money ever makes it to creditors -- the companies simply steal it, Gibbons points out. Plus, a growing number of credit card companies refuse to work with debt settlement groups. Of course, a group probably won't tell you that until after you've paid them.

Until the government begins to regulate these companies, your best bet is to stay away from them, Gibbons suggests.

"While there are some legitimate companies out there that will do what they claim, that doesn't erase the other negatives -- big fees, taxes, hurting credit report," she said.

Experts say working with these companies is only one step above bankruptcy, and should be avoided at all costs. But where does that leave you? Where else can you turn?

"Start by trying to negotiate with creditors yourself," Gibbons said. "While they likely won't forgive any of your debt, they may lower your interest rate, or eliminate some fees. Don't just roll your eyes and say, 'Yeah, I've heard that before.'"

Gibbons added, " ... Just recently, the top 10 credit card issuers agreed to make more concessions for consumers in financial trouble and initial reports are that individuals are having more luck working with creditors. If you can't make a big enough dent in your debt yourself, look for a credit counseling agency. Again, you need to choose a legit company, but there a lot of good companies out there as compared to debt settlement companies. For a nominal fee - less than $100, and often closer to $20 -- a credit counselor will look over your finances and provide some basic financial advice and education."

She added that a credit counselor can also negotiate lower interest rates with creditors and get them to remove fees from your account. A credit counseling company can enroll you in a "debt management plan." Under this plan, you give a lump sum to the company each month and they dole out payments to your various creditors at reduced interest rates.

"You still need to do your due diligence in choosing a credit counseling company," Gibbons said. "Most of them are non-profits, but that doesn't make them legit!"

Gibbons suggests checking with your local Better Business Bureau and state attorney general's office to see if there have been any complaints lodged against your credit counseling company. Gibbons noted that reputable firms will be affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

"And the company should never try to push you immediately into a debt management plan," she said. "If they do, that's a red flag that they may not have your best interest at heart."

© MMIX, CBS Interactive Inc. All Rights Reserved.

Share:

Digg

Facebook

Yahoo! Buzz

Twitter

Mixx

More From Money Matters

• FAQ: Should I Buy an Extended Warranty?
• Five Ways to Face Your Finances
• Debit Card Downfalls
• Saving $$ This Holiday Weekend
• How to Save for College
• Protecting Yourself from Mortgage Scams
• How to Get a Raise During a Recession

• 

  VideoTips For Getting A Mortgage

• 

  VideoIs Your Money Safe?

Add a Comment See all 19 Comments

by atunit November 3, 2009 3:09 PM EST

http://www.Premierdebthelp.com

We are a solid company that does not take any upfront fees. We give a money back guarantee and provide you the best possible service. we are rated as one of the best debt settlement companies.

Reply to this comment

by Florida83 October 16, 2009 11:43 AM EDT

Of course CBS would look down on debt settlement and try to push people toward debt management or consumer credit counseling agencies; they must be in bed with the banks too. It is harder than ever to call your creditors and get your interest rates reduced. There is no guarantee that a debt management company will be any more successful than you would. What they do not tell you is that since the creditors will be getting your payment from the debt management company, they are required to report on your credit reports that you used a consumer credit counseling agency. This will stay on your credit reports for the next 7 years and make it very difficult to get a loan during that period. Dave Ramsey will confirm that. Anything you do other than pay your creditors on time as agreed each any every month will have a negative impact on your credit, and do not let anyone tell you otherwise. You want to look for a debt settlement company that gives you concrete money back guarantees for its services and a credit correction program (and make sure it is credit correction and not credit repair, they are very different). This will enable you to get out of debt usually in less than 4 years and will save you money both monthly and overall. Financial Independence and Resource Education out of Florida offers a program that guarantees results or your money back. Please feel free to call toll free 866-374-5661. Ask any representative to go over all of your options so you can be fully informed on what would be best for you.

Reply to this comment

by MerchLeads August 30, 2009 4:42 PM EDT

Settle My Debt Dot TV - http://SettleMyDebt.TV

Debt Settlement with No Monthly Junk Fees!

Proper Debt Settlement.

Reply to this comment

by MerchLeads August 28, 2009 2:06 PM EDT

Did You Just Type Into Google -

"settle my debt" ??


Debt Settlement Companies Own Up!

"You Don't Have to Pay Monthly Junk Fees to Settle Your Debt!"

Americans who have already settled their debt after typing into Google "settle my debt" have derived a national average of $25,000.00 in debt to settle, across the board, nationwide. Some have $5,000 to settle, and some have $105,000 in debt to settle. This includes credit cards, medical bills, and all other "unsecured debt."

Regardless of how much debt you have, the real money you should be saving is on the monthly junk fees when making payments that go into your "Special Purpose Account" for your debt settlement program.

advertisement | http://SettleMyDebt.TV

So, for instance, if you are $25,000 in debt and want to stop paying back minimum payments on your credit cards, or the little bit more that you can afford to pay each month, only to find out that the next month's bill is even worse, and you didn't even spend any more money on the card, you need to clearly understand your options!

Debt Settlement works when you're not paying monthly junk fees. You know what junk fees are; the fees that some other person in a debt settlement company is lifting from your pocket to theirs, but with no different outcome to settling your debt.

You see, there is no difference between which debt settlement company can settle your debt for a lesser percentage of the total debt. They will "All" settle your debt for approximately 50 cents on the dollar. Don't expect more even if the very persuasive salesperson calling you says they can settle your debt for less. They are reading from a script, and reality is that the faster you pay back your settlement, the lower you can pay back percentage wise. Stretching your payments out doesn't help you, it hurts.

If you're going to settle your debt with a debt settlement company, muster up as much as you can possibly afford each month, as this enables the company to settle your debt for less.

Remember, debt settlement companies exist to provide a service, and that service should cost you 15% of your total debt, but there should be no monthly service fees or maintenance fees.

NOTE: Every single debt settlement company in the nation must use a third party processing company to move your money (debit your account) from your checking account to your special purpose account (this is the account that is used to settle your debt.) They charge approximately $9.00 each month, and no debt settlement company in the nation can avoid this fee; do not confuse this nominal fee with any other monthly or maintenance fee.

advertisement | http://SettleMyDebt.TV

For instance, you'll speak to a debt settlement agent over the phone, and they'll say that they are settling your debt for a percentage on the dollar, and they'll explain that your fee is 15% (which is the going price across the board to settle your debt from any back-end debt settlement company); but what they typically fail to make clear is that you will also pay an additional monthly fee or fees frequently named on your agreement as: "maintenance fee", "processing fee", "application fee", "settlement fee", etc.

The aforementioned "fees" are all bogus, added on by someone who figures that you're not smart enough to know the difference. Hello!

Debt Settlement Fees - Just say No! These additional fees are pitched to sound reasonable to you, so you say "duh ok, I'll pay them" - please do not!

Monthly Maintenance and Service Fees: There is no such thing as a "maintenance or whatever fee"; the debt settlement company is given the option - by the processing company that collects your money once you send it in - to add these extra fees onto your bill. Not kidding!

They are pure junk fees - just someone saying "let's charge this too, they'll never notice the difference." If you pay $50 extra a month in junk fees, multiplied by the 24 to 36 months it's going to take to pay your debt program off, you'll have added another $1,200 to $1,800 to the bill.

Please pass this information on, as I've got a hunch, many are being told otherwise.

Finally Revealed; "You Do Not Have to Pay Monthly Junk Fees To Settle Your Debt!"

http://SettleMyDebt.TV - "Proper Debt Settlement"

- Settle My Debt Dot TV - Fastest and Least Expensive Debt Settlement!

% % %

Offer Proper Debt Settlement - Offer Debt Settlement with No Monthly Junk Fees!

Our Clients Love Us and They'll Love You Too!

A Director of the Company Will Contact You After You Submit Your Information to http://DebtSaver.US

Debt Saver Dot U S

Thank you, Richard Preisig aka Rich Preisig

Article Source: http://EzineArticles.com/?expert=Rich_Preisig

Reply to this comment

by graduatestar August 17, 2009 4:25 PM EDT

August, 2009
Last year, I made the mistake of climbing on board with a debt settlement company, Everest Debt Solutions. Beware of this company, all they did was take my money and only settled two accounts, one small one for 374.00 and a larger one for 4300.00. They told me don't call your creditors, we will call them for you. This never happened and I had to change my cell phone number and my home phone number twice. They cost me money instead of saving me money. Buyer Beware! I learned my lesson and am settling with all my creditors one by one. Also throught a legal plan at work at which I only pay $15.00 per month, I have secured the services of an attorney who has extensive experience in these matters. Don't make the same mistake I did!

Reply to this comment

by SealTeam0 June 16, 2009 3:34 PM EDT

Why aren't the Congress and state legislators helping the consumer by passing laws against the retaliatory and oppressive practices of the credit card companies? They raise interest rates even though you pay them on time. They close your account without provocation. They change the rules whenever they want to. Now, ALL OF A SUDDEN, good ole' CBS news interested in helping the ordinary American? HA! Where was the report about unfair credit card/banking practices, fees, etc. all of these years. Where was there great journalism while the bank and Wall St. execs were stealing us all blind? All Americans should have the option to start their finance and credit life over. The government has allowed the banks to create a nation of credit slaves and the media has been their lapdog. Now, ***! They are going to tell us whose good and whose evil?

I say, if trashing my FICO score for about 3 years will get me free from these blood-sucking bank leeches, Oh Happy Day! If you can file a hard Chapter 7 bankruptcy, get through it and still rebuild your credit afterwards, how can 2 or 3 year of aggressive settlement ruin your for life? Stop drinking the Koolaid.

Can you smell the fear that's cooking? Sound familiar? Iraq? The strength of the economy? Vietnam? It's time to think for ourselves, make choices that benefit our families instead of paying for golden parachutes, spa holidays, wild broker's parties, plastic surgeries, etc.

"Rogue Industry". That sounds like a description of the industry that started out by using our money to make a few billionaire over the last hundred years. Oh, those are CBS's friends, the banks.

Reply to this comment

by TheDebtMommy June 15, 2009 10:27 PM EDT

Having worked in a mangement level position of one of the nation's leading debt settlement agencies, I can confirm that this article is accurate. Debt settlement agencies are hurting people who come to them in need of help. Debt settlement itself though is an option to consider, but should be done on your own, saving you thousands. Literally. For some help on do-it-yourself debt settlement, check out Marie-Daniel Consultation Services (www.mariedanielservices.com). WARNING: Do not use a debt settlement agency! There's plenty of legitimate help out available that won't cost a fortune and possibly (very possibly) leave you worse off than when you started.

Reply to this comment

by niles1974 May 18, 2009 3:55 PM EDT

I'm still unsure why debt settlement has the bad rap that it does. Yes there are bad seeds in the industry, but that's no different than any other industry. Also Gibbons only points out the negative aspects of the program - be the journalist you claim to be and list the pros as well. Also if you did your research you'd find that Credit Counseling has a high fall-out rate and that it's a program designed by creditors. Settlement's not for everyone but it's a viable solution out of the very few options on the market.

With regards to the 'F' rating in certain states for debt negotiation businesses this is being looked into. California lists all debt negotiation companies as 'F' but the person in charge there has a vested interest in credit counseling - now let's talk about bad seeds.

Reply to this comment

by quapawsix May 18, 2009 9:12 AM EDT

Be patient their little gig will soon end. They are in big trouble they have lent out so much money and are not getting the returns they expected since the economy has failed. Why do you think they are looking to raise fees and are now looking for a bail out. The economic situation across the planet is in the toilet. And the rich elitist's are worried, if it gets any worse they will not be able to control the title wave of the out raged masses. Their only control is through fear once they lose that, their control game is over. And when people are backed into a corner where there is no more hope, and they don't trust the Government, take a lesson from history France, Russia, and even our own country in the 1700's.

Reply to this comment

by nomadchick28 May 14, 2009 10:56 AM EDT

I was one of the many that fell prey to CCC. They set me up with a law firm who told me they would help settle my debt at a lower fee. They told me they would settle my $5000 debt for less then half of that in three years. LIARS! After three years nothing has been paid to those companies and my credit is far worse then when this started. All the money the company withdrew they stole as 'their fee.' I look back now and realize I should have dealt with the creditors myself.

Reply to this comment

by rieco7z May 13, 2009 10:41 AM EDT

the credit card companies do not want you to payback 100% of what you owe. They want you to make the minimum payment for 30 + years and payback 300%. If you can not afford the minimums, they will refer you to consumer credit counseling. Why? Because credit counseling is a collection agency for the credit card companies. You payback 100% plus a "lower" interest rate so they get about 125%. of what you owe. Credit card companies (big banks) do not like debt settlement because they get back 40 to 60% only. Big banks have money and as a result power to influence. They are bad debt settlement companies, bad attorneys, bad politicians (yes there are), and bad TV networks.

Reply to this comment

by dsobserver May 13, 2009 10:38 AM EDT

At a time when more consumers NEED honest debt settlement assistence (and as indicated above, there ARE honest debt settlement companies out there) Congress and many states are being asked to shut this industry down. The NY AG calls it a "rogue industry," announcing the issuance of subpoenas to 14 debt settlement companies (CBS, do some fact-checking and find out how many of those subpoenas were actually issued!).

Why is this happening? Why is the focus being shifted to the debt settlement industry, one of the few groups out there fighting for consumers, battling credit card companies every day. Gee, who has an interest in stopping these guys, the Americans who need to get out of debt? I don't think so.

One of the most misleading parts of this story is the statistics on complaints. Sure complaints against debt settlement companies are up four times - there are a lot more people in debt and a lot more debt settlement companies out there working to help them. But four times a small number of complaints is still a small number.

According to the FTC's statistics for 2008 (and the BBB's are consistent with these), complaints against DEBT COLLECTORS (the credit card companies and their representatives) were the 2nd highest group of consumer complaints in 2008 (104,642), almost 10% of all complaints. Combined, debt settlement and credit counseling totaled just 1% of consumer complaints.

Yet, just yesterday, Acting FTC chief Eileen Harrington was before a Congressional subcommittee supporting a bill that would essentially put debt settlement companies out of business.

Write your representatives and ask them to support reasonable regulations that will to stop the scammers but preserve and protect the efforts of the legitimate debt settlement industry.

Reply to this comment

by NewYorkNeil May 13, 2009 10:05 AM EDT

I am a financial consultant with a good knowledge of the law. I started a debt negotiation business 15 years ago. Debt negotiation really works. I save my clients 40-80% of what they owe. They are debt-free in 60-120 days. I charge $300 to prepare the paperwork and get power of attorney to creditors. There are no other fees. When I get a settlement, my client is only charged 25% of the savings. It gets reported to the credit bureaus as settled, but that's better than showing as a suit, judgment or bankruptcy. Then my client gets a secured credit card and pays on time each month. This gets reported to the credit bureaus each month and helps to rebuild their FICO scores. I never take a client who has good credit, but if you have a bad credit history, then settlement won't hurt you. Need information, call Neil H. 917-562-0925. I'll give you better advice than Vera Gibbons or Harry Smith. Remember: banks pay kickbacks to debt consolidation firms for collecting their money!!!!

Reply to this comment

by Yankees212 May 13, 2009 12:35 AM EDT

HAAAAAAAAAAAAA I had 45,000 in debt, spoke to this wonderful boy Kieran (631-316-7272), he explained the whole program. I am now 2 months free of debt. Program took me 32 Months out of my TRUST account. I had 5 Credit Cards, I was running all across Chicago Paying every single card ! My highest card was 13%, goodbye! I made 32 payments on 0% intrest, more importantly they paid the bills! The set fee out of your TRUST account every month. This is a no brainer, no interest, no more BS. I am now rebuilding my life, rebuilding my temporary setback with FICO-it's just a number! I would have died with debt, I want the best for my beautiful kids not a dead problem!

Best Wishes
Jamie Ellison

Kieran Rodgers at 631-316-7272 taught me how to do all this, thank you so much!

Reply to this comment

by sunroofdr May 12, 2009 7:43 PM EDT

this story is not fully true, settlement is looked down on because it gets you out of debt faster then any other way and you can start cleaning up your credit report sooner. anyway you try to get out of debt fast will have a affect on your credit ,its all about the same, if some one tells you that cccs will not hurt your credit they are lying, and that should end their credibilty, what the reporters dont tell you is cccs gets paid by you and by the credit card companys and many of them are under investagation. its true that there are alot of settlement companys out there that should be shut down. do you home work, check with T.A.S.C. they can help. be carefull listening to so called experts that are paid by companys like CBS that are funded by the banks and credit card companys.

Reply to this comment

by ppc6mm May 12, 2009 6:38 PM EDT

I participated in a debt management program with a legitimate company. They negotiated an interest rate reduction & fee elimination with my creditors. They are a non-profit company that charges a flat rate $20 each month as a processing fee. They withdrew a lump sum out of my checking account each month & disbursed payments electronically to each credit account, until they were paid off, & then they take that amount & add it to the next largest account, or the one with the most interest.

It took 5 years to pay off $45,000 in debt, but I am now debt free. If I would have continued to try & manage my debt, alone, I would now be further in debt, with no end in sight.

I am now forever in debt to this company, in gratitude for their help, not financially. The company?s name is Take Charge America. I have no black marks on my credit report & all accounts state that I paid as agreed.....

Reply to this comment

by MerchLeads May 12, 2009 4:33 PM EDT

Start Offering Debt Settlement, But Which Debt Settlement Company(s) Do You Choose
By Rich Preisig

It's the same old song and dance; the guy that was selling insurance last week is offering debt settlement this week and the woman who was selling real estate is now offering loan modification. Those on the front lines of being a mortgage owner or branch manager, now loan modification agent, can find it quite incestuous, as new industries rise and fall. Rising; yes, and the Debt Settlement Industry is apparently the New Black!

Recently and most noticeably has been the explosive growth and opening of Debt Settlement Net Branch Affiliate Offices. And interestingly, these same salespeople are filling these debt settlement branch offices, and they're making $75,000 - $200,000 in commission income, as they bailout the people with overextended credit card debt and other unsecured debt. There is so much money in the debt settlement industry and a lot of people are going to get a Fresh Start!

To Find Out How To Offer Debt Settlement to Your Clients Goto - http://merchleads.com/NewOffice.html

Reply to this comment

by Curley_Fry May 12, 2009 2:01 PM EDT

Again CBS does not report news they create it. Yes their are bad companies out there. Why not look at the ones trying to help. Did she contact USOBA or TASC organizations that help it members do the right thing by its consumers Instead she offers help from the very banks that helpped create this mess. That is the same backward thinking we have going on in congress. Barney Frank and Dodge helped create this mess we are in yet they are going to help get us out. You don't put the fox in charge of the hen house. BBB is the not regulated and is just a franchise. The news should just report not opinion the news.

Reply to this comment

by dukeblue21230 May 12, 2009 12:41 PM EDT

Anyone with any knowledge in this industry would know that this was an article done by and made to benefit Consumer Credit Counseling. It's a cry for help from that industry because LEGIT Debt Settlement companies are putting them out of business by achieving much more success for clients then CCCS companies. CCCS companies take 5-8 years to complete, ruin your credit, and also have a less then 10% graduation rate. They work for the credit card companies themselves. When most Americans look at the credit card companies as the devil, it is essentially doing another deal with the devil. A legit debt settlement company (I enrolled my mothers debts with one) will get you out of debt within 3 years at a much lower monthly payment then CCCS has for 7 years. Also it does have a negative impact on your credit but not nearly the damage that CCCS will have. The debt settlement program does work (I know this for a fact) you just have to be patient through those 3 years as the funds accumulate and settlements are made. Also make sure you find a legit company. I can recommend the one I used for my mother but I know they only do certain states. Overall though this article is very misleading and smells very strongly of CBS doing an article to benefit the large credit card companies that steal from us every day. Imagine that, the rich get richer and help one another while misleading. I would say that I'm surprised by CBS for posting such material without proper research but I'd be lying. If I could figure it out by doing the research when looking for help for my mother, I would like to think that CBS could as well.

Reply to this comment

See all 19 Comments

Add a comment

Comment SUBMIT

Click here to add another comment.

The posting of advertisements, profanity, or personal attacks is prohibited. By using this Web site you agree to accept our Terms of Service. Click here to read the Rules of Engagement.

Comment reply

Submit Cancel

The posting of advertisements, profanity, or personal attacks is prohibited. By using this Web site you agree to accept our Terms of Service. Click here to read the Rules of Engagement.

Report offensive content:

If you believe this comment is offensive or violates the CBSNews.com Terms of Use, you can report it below (this will not automatically remove the comment). Once reported, our staff will be notified and the comment will be reviewed.

Select type of offense:

Offensive: Sexually explicit or offensive language

Spam: Advertisements, commercial links, or repetitive posts

Disruptive posting: Flaming or offending other users

Illegal activities: Promote cracked software, or other illegal content

Off-topic: Commentary unrelated to the storyline

Comments (optional):

Report Cancel

E-mail this comment to a friend.

E-mail this to: (Separate multiple e-mail addresses with commas. Limited to 10 addresses.)

Your e-mail address:

Send me a copy of this message

Note: Your e-mail address is used only to let the recipient know who sent the e-mail and in case of transmission error. Neither your address nor the recipients's address will be used for any other purpose.

Add your own personal message: (Optional)

Hi, I found this user's comment on CBSNews.com and thought you might be interested in reading it. Send e-mail Cancel

[atunit]

http://www.Premierdebthelp.com

We are a solid company that does not take any upfront fees. We give a money back guarantee and provide you the best possible service. we are rated as one of the best debt settlement companies.

[Florida83]

Of course CBS would look down on debt settlement and try to push people toward debt management or consumer credit counseling agencies; they must be in bed with the banks too. It is harder than ever to call your creditors and get your interest rates reduced. There is no guarantee that a debt management company will be any more successful than you would. What they do not tell you is that since the creditors will be getting your payment from the debt management company, they are required to report on your credit reports that you used a consumer credit counseling agency. This will stay on your credit reports for the next 7 years and make it very difficult to get a loan during that period. Dave Ramsey will confirm that. Anything you do other than pay your creditors on time as agreed each any every month will have a negative impact on your credit, and do not let anyone tell you otherwise. You want to look for a debt settlement company that gives you concrete money back guarantees for its services and a credit correction program (and make sure it is credit correction and not credit repair, they are very different). This will enable you to get out of debt usually in less than 4 years and will save you money both monthly and overall. Financial Independence and Resource Education out of Florida offers a program that guarantees results or your money back. Please feel free to call toll free 866-374-5661. Ask any representative to go over all of your options so you can be fully informed on what would be best for you.

[MerchLeads]

Settle My Debt Dot TV - http://SettleMyDebt.TV

Debt Settlement with No Monthly Junk Fees!

Proper Debt Settlement.

[MerchLeads]

Did You Just Type Into Google -

"settle my debt" ??


Debt Settlement Companies Own Up!

"You Don't Have to Pay Monthly Junk Fees to Settle Your Debt!"

Americans who have already settled their debt after typing into Google "settle my debt" have derived a national average of $25,000.00 in debt to settle, across the board, nationwide. Some have $5,000 to settle, and some have $105,000 in debt to settle. This includes credit cards, medical bills, and all other "unsecured debt."

Regardless of how much debt you have, the real money you should be saving is on the monthly junk fees when making payments that go into your "Special Purpose Account" for your debt settlement program.

advertisement | http://SettleMyDebt.TV

So, for instance, if you are $25,000 in debt and want to stop paying back minimum payments on your credit cards, or the little bit more that you can afford to pay each month, only to find out that the next month's bill is even worse, and you didn't even spend any more money on the card, you need to clearly understand your options!

Debt Settlement works when you're not paying monthly junk fees. You know what junk fees are; the fees that some other person in a debt settlement company is lifting from your pocket to theirs, but with no different outcome to settling your debt.

You see, there is no difference between which debt settlement company can settle your debt for a lesser percentage of the total debt. They will "All" settle your debt for approximately 50 cents on the dollar. Don't expect more even if the very persuasive salesperson calling you says they can settle your debt for less. They are reading from a script, and reality is that the faster you pay back your settlement, the lower you can pay back percentage wise. Stretching your payments out doesn't help you, it hurts.

If you're going to settle your debt with a debt settlement company, muster up as much as you can possibly afford each month, as this enables the company to settle your debt for less.

Remember, debt settlement companies exist to provide a service, and that service should cost you 15% of your total debt, but there should be no monthly service fees or maintenance fees.

NOTE: Every single debt settlement company in the nation must use a third party processing company to move your money (debit your account) from your checking account to your special purpose account (this is the account that is used to settle your debt.) They charge approximately $9.00 each month, and no debt settlement company in the nation can avoid this fee; do not confuse this nominal fee with any other monthly or maintenance fee.

advertisement | http://SettleMyDebt.TV

For instance, you'll speak to a debt settlement agent over the phone, and they'll say that they are settling your debt for a percentage on the dollar, and they'll explain that your fee is 15% (which is the going price across the board to settle your debt from any back-end debt settlement company); but what they typically fail to make clear is that you will also pay an additional monthly fee or fees frequently named on your agreement as: "maintenance fee", "processing fee", "application fee", "settlement fee", etc.

The aforementioned "fees" are all bogus, added on by someone who figures that you're not smart enough to know the difference. Hello!

Debt Settlement Fees - Just say No! These additional fees are pitched to sound reasonable to you, so you say "duh ok, I'll pay them" - please do not!

Monthly Maintenance and Service Fees: There is no such thing as a "maintenance or whatever fee"; the debt settlement company is given the option - by the processing company that collects your money once you send it in - to add these extra fees onto your bill. Not kidding!

They are pure junk fees - just someone saying "let's charge this too, they'll never notice the difference." If you pay $50 extra a month in junk fees, multiplied by the 24 to 36 months it's going to take to pay your debt program off, you'll have added another $1,200 to $1,800 to the bill.

Please pass this information on, as I've got a hunch, many are being told otherwise.

Finally Revealed; "You Do Not Have to Pay Monthly Junk Fees To Settle Your Debt!"

http://SettleMyDebt.TV - "Proper Debt Settlement"

- Settle My Debt Dot TV - Fastest and Least Expensive Debt Settlement!

% % %

Offer Proper Debt Settlement - Offer Debt Settlement with No Monthly Junk Fees!

Our Clients Love Us and They'll Love You Too!

A Director of the Company Will Contact You After You Submit Your Information to http://DebtSaver.US

Debt Saver Dot U S

Thank you, Richard Preisig aka Rich Preisig

Article Source: http://EzineArticles.com/?expert=Rich_Preisig

[graduatestar]

August, 2009
Last year, I made the mistake of climbing on board with a debt settlement company, Everest Debt Solutions. Beware of this company, all they did was take my money and only settled two accounts, one small one for 374.00 and a larger one for 4300.00. They told me don't call your creditors, we will call them for you. This never happened and I had to change my cell phone number and my home phone number twice. They cost me money instead of saving me money. Buyer Beware! I learned my lesson and am settling with all my creditors one by one. Also throught a legal plan at work at which I only pay $15.00 per month, I have secured the services of an attorney who has extensive experience in these matters. Don't make the same mistake I did!

[SealTeam0]

Why aren't the Congress and state legislators helping the consumer by passing laws against the retaliatory and oppressive practices of the credit card companies? They raise interest rates even though you pay them on time. They close your account without provocation. They change the rules whenever they want to. Now, ALL OF A SUDDEN, good ole' CBS news interested in helping the ordinary American? HA! Where was the report about unfair credit card/banking practices, fees, etc. all of these years. Where was there great journalism while the bank and Wall St. execs were stealing us all blind? All Americans should have the option to start their finance and credit life over. The government has allowed the banks to create a nation of credit slaves and the media has been their lapdog. Now, ***! They are going to tell us whose good and whose evil?

I say, if trashing my FICO score for about 3 years will get me free from these blood-sucking bank leeches, Oh Happy Day! If you can file a hard Chapter 7 bankruptcy, get through it and still rebuild your credit afterwards, how can 2 or 3 year of aggressive settlement ruin your for life? Stop drinking the Koolaid.

Can you smell the fear that's cooking? Sound familiar? Iraq? The strength of the economy? Vietnam? It's time to think for ourselves, make choices that benefit our families instead of paying for golden parachutes, spa holidays, wild broker's parties, plastic surgeries, etc.

"Rogue Industry". That sounds like a description of the industry that started out by using our money to make a few billionaire over the last hundred years. Oh, those are CBS's friends, the banks.

[TheDebtMommy]

Having worked in a mangement level position of one of the nation's leading debt settlement agencies, I can confirm that this article is accurate. Debt settlement agencies are hurting people who come to them in need of help. Debt settlement itself though is an option to consider, but should be done on your own, saving you thousands. Literally. For some help on do-it-yourself debt settlement, check out Marie-Daniel Consultation Services (www.mariedanielservices.com). WARNING: Do not use a debt settlement agency! There's plenty of legitimate help out available that won't cost a fortune and possibly (very possibly) leave you worse off than when you started.

[niles1974]

I'm still unsure why debt settlement has the bad rap that it does. Yes there are bad seeds in the industry, but that's no different than any other industry. Also Gibbons only points out the negative aspects of the program - be the journalist you claim to be and list the pros as well. Also if you did your research you'd find that Credit Counseling has a high fall-out rate and that it's a program designed by creditors. Settlement's not for everyone but it's a viable solution out of the very few options on the market.

With regards to the 'F' rating in certain states for debt negotiation businesses this is being looked into. California lists all debt negotiation companies as 'F' but the person in charge there has a vested interest in credit counseling - now let's talk about bad seeds.

[quapawsix]

Be patient their little gig will soon end. They are in big trouble they have lent out so much money and are not getting the returns they expected since the economy has failed. Why do you think they are looking to raise fees and are now looking for a bail out. The economic situation across the planet is in the toilet. And the rich elitist's are worried, if it gets any worse they will not be able to control the title wave of the out raged masses. Their only control is through fear once they lose that, their control game is over. And when people are backed into a corner where there is no more hope, and they don't trust the Government, take a lesson from history France, Russia, and even our own country in the 1700's.

[nomadchick28]

I was one of the many that fell prey to CCC. They set me up with a law firm who told me they would help settle my debt at a lower fee. They told me they would settle my $5000 debt for less then half of that in three years. LIARS! After three years nothing has been paid to those companies and my credit is far worse then when this started. All the money the company withdrew they stole as 'their fee.' I look back now and realize I should have dealt with the creditors myself.

[rieco7z]

the credit card companies do not want you to payback 100% of what you owe. They want you to make the minimum payment for 30 + years and payback 300%. If you can not afford the minimums, they will refer you to consumer credit counseling. Why? Because credit counseling is a collection agency for the credit card companies. You payback 100% plus a "lower" interest rate so they get about 125%. of what you owe. Credit card companies (big banks) do not like debt settlement because they get back 40 to 60% only. Big banks have money and as a result power to influence. They are bad debt settlement companies, bad attorneys, bad politicians (yes there are), and bad TV networks.

[dsobserver]

At a time when more consumers NEED honest debt settlement assistence (and as indicated above, there ARE honest debt settlement companies out there) Congress and many states are being asked to shut this industry down. The NY AG calls it a "rogue industry," announcing the issuance of subpoenas to 14 debt settlement companies (CBS, do some fact-checking and find out how many of those subpoenas were actually issued!).

Why is this happening? Why is the focus being shifted to the debt settlement industry, one of the few groups out there fighting for consumers, battling credit card companies every day. Gee, who has an interest in stopping these guys, the Americans who need to get out of debt? I don't think so.

One of the most misleading parts of this story is the statistics on complaints. Sure complaints against debt settlement companies are up four times - there are a lot more people in debt and a lot more debt settlement companies out there working to help them. But four times a small number of complaints is still a small number.

According to the FTC's statistics for 2008 (and the BBB's are consistent with these), complaints against DEBT COLLECTORS (the credit card companies and their representatives) were the 2nd highest group of consumer complaints in 2008 (104,642), almost 10% of all complaints. Combined, debt settlement and credit counseling totaled just 1% of consumer complaints.

Yet, just yesterday, Acting FTC chief Eileen Harrington was before a Congressional subcommittee supporting a bill that would essentially put debt settlement companies out of business.

Write your representatives and ask them to support reasonable regulations that will to stop the scammers but preserve and protect the efforts of the legitimate debt settlement industry.

[NewYorkNeil]

I am a financial consultant with a good knowledge of the law. I started a debt negotiation business 15 years ago. Debt negotiation really works. I save my clients 40-80% of what they owe. They are debt-free in 60-120 days. I charge $300 to prepare the paperwork and get power of attorney to creditors. There are no other fees. When I get a settlement, my client is only charged 25% of the savings. It gets reported to the credit bureaus as settled, but that's better than showing as a suit, judgment or bankruptcy. Then my client gets a secured credit card and pays on time each month. This gets reported to the credit bureaus each month and helps to rebuild their FICO scores. I never take a client who has good credit, but if you have a bad credit history, then settlement won't hurt you. Need information, call Neil H. 917-562-0925. I'll give you better advice than Vera Gibbons or Harry Smith. Remember: banks pay kickbacks to debt consolidation firms for collecting their money!!!!

[Yankees212]

HAAAAAAAAAAAAA I had 45,000 in debt, spoke to this wonderful boy Kieran (631-316-7272), he explained the whole program. I am now 2 months free of debt. Program took me 32 Months out of my TRUST account. I had 5 Credit Cards, I was running all across Chicago Paying every single card ! My highest card was 13%, goodbye! I made 32 payments on 0% intrest, more importantly they paid the bills! The set fee out of your TRUST account every month. This is a no brainer, no interest, no more BS. I am now rebuilding my life, rebuilding my temporary setback with FICO-it's just a number! I would have died with debt, I want the best for my beautiful kids not a dead problem!

Best Wishes
Jamie Ellison

Kieran Rodgers at 631-316-7272 taught me how to do all this, thank you so much!

[sunroofdr]

this story is not fully true, settlement is looked down on because it gets you out of debt faster then any other way and you can start cleaning up your credit report sooner. anyway you try to get out of debt fast will have a affect on your credit ,its all about the same, if some one tells you that cccs will not hurt your credit they are lying, and that should end their credibilty, what the reporters dont tell you is cccs gets paid by you and by the credit card companys and many of them are under investagation. its true that there are alot of settlement companys out there that should be shut down. do you home work, check with T.A.S.C. they can help. be carefull listening to so called experts that are paid by companys like CBS that are funded by the banks and credit card companys.

[ppc6mm]

I participated in a debt management program with a legitimate company. They negotiated an interest rate reduction & fee elimination with my creditors. They are a non-profit company that charges a flat rate $20 each month as a processing fee. They withdrew a lump sum out of my checking account each month & disbursed payments electronically to each credit account, until they were paid off, & then they take that amount & add it to the next largest account, or the one with the most interest.

It took 5 years to pay off $45,000 in debt, but I am now debt free. If I would have continued to try & manage my debt, alone, I would now be further in debt, with no end in sight.

I am now forever in debt to this company, in gratitude for their help, not financially. The company?s name is Take Charge America. I have no black marks on my credit report & all accounts state that I paid as agreed.....

[MerchLeads]

Start Offering Debt Settlement, But Which Debt Settlement Company(s) Do You Choose
By Rich Preisig

It's the same old song and dance; the guy that was selling insurance last week is offering debt settlement this week and the woman who was selling real estate is now offering loan modification. Those on the front lines of being a mortgage owner or branch manager, now loan modification agent, can find it quite incestuous, as new industries rise and fall. Rising; yes, and the Debt Settlement Industry is apparently the New Black!

Recently and most noticeably has been the explosive growth and opening of Debt Settlement Net Branch Affiliate Offices. And interestingly, these same salespeople are filling these debt settlement branch offices, and they're making $75,000 - $200,000 in commission income, as they bailout the people with overextended credit card debt and other unsecured debt. There is so much money in the debt settlement industry and a lot of people are going to get a Fresh Start!

To Find Out How To Offer Debt Settlement to Your Clients Goto - http://merchleads.com/NewOffice.html

[Curley_Fry]

Again CBS does not report news they create it. Yes their are bad companies out there. Why not look at the ones trying to help. Did she contact USOBA or TASC organizations that help it members do the right thing by its consumers Instead she offers help from the very banks that helpped create this mess. That is the same backward thinking we have going on in congress. Barney Frank and Dodge helped create this mess we are in yet they are going to help get us out. You don't put the fox in charge of the hen house. BBB is the not regulated and is just a franchise. The news should just report not opinion the news.

[dukeblue21230]

Anyone with any knowledge in this industry would know that this was an article done by and made to benefit Consumer Credit Counseling. It's a cry for help from that industry because LEGIT Debt Settlement companies are putting them out of business by achieving much more success for clients then CCCS companies. CCCS companies take 5-8 years to complete, ruin your credit, and also have a less then 10% graduation rate. They work for the credit card companies themselves. When most Americans look at the credit card companies as the devil, it is essentially doing another deal with the devil. A legit debt settlement company (I enrolled my mothers debts with one) will get you out of debt within 3 years at a much lower monthly payment then CCCS has for 7 years. Also it does have a negative impact on your credit but not nearly the damage that CCCS will have. The debt settlement program does work (I know this for a fact) you just have to be patient through those 3 years as the funds accumulate and settlements are made. Also make sure you find a legit company. I can recommend the one I used for my mother but I know they only do certain states. Overall though this article is very misleading and smells very strongly of CBS doing an article to benefit the large credit card companies that steal from us every day. Imagine that, the rich get richer and help one another while misleading. I would say that I'm surprised by CBS for posting such material without proper research but I'd be lying. If I could figure it out by doing the research when looking for help for my mother, I would like to think that CBS could as well.