Debt Views

As the industry of debt settlement continues to grow, there are many programs you may consider to be in your best interest and affordable. Just the thought of being debt free brings tears to the family who has been distracted with interest payments for years. It is said that 78% of all income is paid out to debt of some type. The major percent of each payment going to interest. So lets look at your options in bringing resolve through debt settlement or debt debt management.

* With Consumer Credit Counseling your going to go through a counselor who will tell you what you already know. After you have paid your enrollment fee, and agreed to automatic bank drafts they will start your program. Your counselor will then contact your creditors and “attempt” to lower your interest. Keep in mind it is only lowered temporarily. Should you or the counselor be late in getting the payment to the creditor, that interest you had lowered will raise its ugly head again making things even worse than ever. Keeping the above in mind, they want you to think they are non-profit and manage your money well. A new article in California found Clients of the California-based National Consumer Council, Florida-based Debt Management Foundation Services Inc. and Massachusetts-based Better Budget Financial Services Inc. paid thousands of dollars to keep bill collectors at bay, but instead clients saw their debts, interest rates and late fees increase as the three companies did little to help. As a sheep in wolves clothing, CCCS, follows up with your creditor with a letter of council that tells them of your involvement in their program and asks them the work with them. Then, asks for what is well known as their fare-share contribution. They claim to be non profit, yet the money you could be paying toward your debt goes to them.

* Debt Consolidation is always a great way to bring resolve to your debt as long as you have a process in place before the consolidation to settle the debt. If there is no procedure in place to discount the amount owed, there is no “smart” reason to conduct a consolidation loan. Lowering the monthly payment is nice, but the end result may not be what you desired. A simple trade out of loans does not lower the amount owed or monthly payment, and in most cases your going to end up owing double what you started with. You will as 80% of borrowers do, bring accounts to a zero balance and owe another lender at a lower or longer rate/term. In most cases people that go through debt consolidation will continue to use the accounts that were paid off, resulting in double the debt. End result is if you have a well qualified debt settlement company that will charge a fee based on results handle all the negotiations before the debt consolidation you are sure to come out on top.

* With Fee based Debt Settlement you have many options, and in several ways can save you money. You should know that no debt settlement company can perform any real service to you till such time as you have money to settle. If it is a buffer or shield your looking for, your always in better hands with creditor experts that are IAPDA certified and have been in the collection and or credit industry. They will understand the creditor and your account better than your average debt settlement company. Further, the fees charged by fee based debt settlement company is going to cost you about 15% of your total debt load. So what ever you see in advertisement, you can add about 15 % to their quote, and in most cases is paid up front before the job is done or even started. Read the fine print and guarantee. If they are not willing to give you a written guarantee to perform and produce you should reconsider doing business with them, regardless of of their affiliations or ratings. You have heard the old saying, if it is not in writing it didn’t happen? Truth is, there is only one type of guarantee that will protect the consumer. You will never find this guarantee in fee based debt settlement. When it comes time to perform the actual service most of the money you have saved over the months or years has gone to the debt settlement company leaving little or no money for settlement. This method does not seem to have the consumers best interest in mid as the the debt settlement company gets paid before the creditor. This does not seem financial healthy to me. Looking into this method, I found one of the largest debt settlement companies has just had a class action law suit filed against it naming them for the practice of collecting fees but not providing a services. Along with this law suit, there are over 700 BBB complaints filed for actions truely not in the consumers best interest. While not all fee based debt settlement companies are poison like this one, their general service is the same.

* While a Service fee Based debt settlement program has clearly outlined the best option for debt settlement, as you know that you will either reach a guaranteed discounted rate or pay nothing for the debt settlement services, and pay nothing till the job is done. As the Service fee based debt settlement company generates results you pay the fee rather than paying the fees up front. While all the other services as fee based debt settlement are practiced you simply pay nothing for debt settlement unless the goal is reached and the job is done. This protects you the consumer from fighting for a refund when the service is not completed, and the creditor refused to settle. Only a qualified and IAPDA certified debt settlement company could or should consider this practice as the guarantee is weighed in the side of the consumer. Producing results, industry integrity, ethics and experience will maintain the needed client and creditor relationships.

For those that are considering Debt Settlement should consider these factors while deciding what program fits their needs.

First, how did you hear about the company?

Does the savings program have your best interest in mind?

Are they willing to share their year to date settlement averages with you?

Are they experienced in both the collection and creditor industry?

Are they certified with the IAPDA (International Association Of Professional Debt Arbitrators)?

Do you believe in the the team that will be helping you?

Only you, the consumer can decide to go through with debt settlement, and know that once you start, there is no looking back?

If you feel you have been cheated or placed in a program that is not healthy for your financial condition feel free to contact either your State Attorney General or an expert that is truely well qualified.