Debt Settlement And The Real Truth

Though Debt Settlement has yet to become fully developed as an industry, there seem to be standards through out the board. Those being, the fees. They all want to be paid, and it is not cheap. You will spend AT LEAST 12% of your total debt relief for your average debt settlement company to assist you in settling your unsecured debts. In addition to the continuing late fees from the bank. So the advertisement of 40-60% is not all it is cracked up to be "READ THE FINE PRINT". O' Ya, don't forget to pay your taxes when that 1099c comes from the bank, there is another 14% based on amount saved. So the "SALES PITCH" of 40-60% just fell to 25-15% saved. Well if all they are going to get you is 15-25% why do you need them? You don't. You need a company that has a track record that produces real debt settlements, with a SOLID guarantee. If they are so darn good at what they do, "and that is what they tell you", then why pay one dime till the work is done? You don't pay anything till the car is back and running from the mechanic correct? How about the pool man or the yard man, or even the barber? Are you going to pay before your hair is cut? NO, and you should not pay till your debts are settled.

You might consider looking into a company and you may even find they have good reviews and have even paid thousands of dollars to be a member of some organization. That is meaningless as these organizations have no say in the acts of the company. Most of these organizations are actually run by owners and director of settlement companies . Who's fooling who?. The BBB, to my knowledge has never been to "ANY OF THEIR OFFICES", and they can only go on the word of a consumer who may have been ill advised or did not understand the program and or the risk involved do to untrained "sales people" and huge turn over rates. Unless the company is certified and there are STANDARD FOLLOW UP PROCEDURES on a weekly or monthly basis, even the certifications are worthless. Accountability is everything. A simple trophy on a website does not guarantee results.

In most cases your creditors can and will settle for pennies on the dollar with the right approach. But why pay anything till the work is done and the work is guaranteed? If your willing to prepay the yard man for 3 years, or the lady cutting your hair for the next three years, you should pay for debt settlement before the work is done. Either way your not getting a refund if your not happy with the results.

No debt settlement company can help you unless and until you have money to use for settlement. So till you have these funds, They are simply a mail box for you, and should they stop the calls from the collectors, thats great. Or is it? If the bank can't call and can't write, what can they do? They can and in most cases will file suit. Though a law suit is not the end of the world, they are not much fun. They will still settle, but at a much higher rate. Debt Settlement like many other industries should charge based on results. Unless their real interest is something other than the clients well being why would they not, right? Well, are they digging you deeper in debt? If they do not charge based on results, and actually get paid before the creditor gets paid clearly they are out for their own buck. And from who? The weak, the uneducated or perhaps the ill or elderly or maybe a family who lost a job or loved one. They get paid before the bank? Why?

If your willing to pay for services two or three years before the services are delivered, you have not finished your home work. Have a look at the BBB report of Credit Solutions of America. over 750 BBB complaints!. How many of those clients do you think got a refund when times got even harder, they could not pay for the program any longer. and had to file BK? I think little or NONE!

After over a decade in the credit and finance industry I have developed a Credit Repair company and Debt Settlement company to assist consumers without the risk of being taken for a ride. There are some real good people in the Debt Settlement industry, and there are some real crooks. Watch your step! Watch the guarantee, and if you read the fine print you will see we have the only "GUARANTEE" in the industry that has the clients best interest in mind.

Tom Bates, CDA
CEO - President,
Absolute Debt Solutions Inc.
http://www.absolutedebtsolutions.com