what are the best debt releif/debt settlement companys?

Question

really want to avoid bankruptcy!

Answer 1

If you think this is the better option you are completely wrong. this will cost you more money and hurt your cedit much worse.

i have been a mortgage broker for years and its a nitemare when i see what people pay these companies. they put you in a payment plan and you pay a monthly fee and while they are trying to make a deal with the companies the creditors are still reporting badly against you they end up making more money and after your done you could have paid the debt off completely.

if you cant make a deal with the credit card companies then file for a bankruptcy. generally if you end up paying the debts back its at .20c on ever dollar you owe!
its not that bad i have financed people one day out of bk. A bk is a court ordered deal and once the bankruptcy is discharged your credit will start to climb.

do not use debt settlement companies you can make the calls yourself and get as much done and have more money in your pocket.
believe someone that reads credit reports every day the bk wipes the slate clean the settlement companies dont remove that suff so youll have years of late payments formthese companies you owed on your credit in the end.

the bk is the only wy to get it done legally and let your credit recover

Answer 2

There are no good debt relief/settlement companies. They will take their fees first and screw up your credit completely. There are so many out and out scams.

Use the money to work on your debt yourself. First, you have to learn to live within your means. You have to learn the difference between WANT and NEED. Write down everything you spend money on for a two week period.

Then sit down and make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Then take every penny you can squeeze out of that budget and put it on the highest interest rate debt, while paying minimum on the rest. When the highest interest rate debt is paid off, move to the next till they are all paid off.

You may need to increase your income -- get a second job, garage sale, collect aluminum cans , etc.

It will take you two or three years but you can clear up all your debt by yourself. Just takes commitment on your part.

Answer 3

Here's a good article about debt relief companies... the last paragraph tells you where to look... good luck!

Over the past few years, many companies posing as non-profit debt negotiation and debt relief organizations have been declared fraudulent by the Federal Trade Commission (FTC) and charged with penalties. These companies offer tempting promises and cheat consumers leaving them disheartened and disappointed.

“Non-profit” Debt Relief Companies and their claims:

Such organizations cause the consumers to believe that they want to help the consumer get out of their distressful situations.

Debt reduction – These organizations promise to substantially reduce any type of debt (by almost 10 to 50%)

Better than being Bankrupt – They use tactics which influence the consumer psychologically making them feel that working with the organization is a better choice then going bankrupt.

No effect on Credit Ratings – The consumers work with the non-profit debt relief company to improve their credit ratings but will definitely not notice any improvement even in the long run.

What these companies ask you to do?

A specific amount at periodic intervals is charged by these companies as fee for their services. This fee is taken with the promise that you won’t have to worry about your bills or creditors anymore.

Non-profit Debt Relief Companies – the facts

Always take a while to stop and think about the tall claims made by these companies. If these sound too bogus then you may be cheated sometime in the long run. Such companies earn money from their clients but on paper they claim to be a nonprofit organization. They can simply show false break-even margins in their balance sheets by exaggerating their operating expenses.

An Example of a fraudulent Non-profit Debt Relief Company

In early 2005, the National Consumer Council, a front group of debt relief and negotiation companies, was charged by the FTC for cheating 45000 customers who believed the company’s promises of complete freedom from debts. Other companies such as London Financial Group and Financial Rescue Services were conveniently operating under the NCC. These companies too promised complete freedom from debts. The clients were asked to deposit money in the company’s account in return for their services. Doing this actually worsened the debt crisis of these clients.

Do Legitimate Non-profit Debt Relief Companies really exist?

Yes, these do exist, even though they are very few in number. Inquiring with the Better Business Bureau and other similar institutions can help you determine whether a debt relief company is legitimate or not. Their records enlist the various debt relief companies which have fraud cases against them. This can help you identify if the company you are planning to transact with appears in this list.

Answer 4

If you really mean debt settlement and not debt management, check out the source website and their free evaluation form. Debt managmenet/relief is where you pay monthly and fees and try to pay it off over 3 years which noone really ever does. Debt settlement is where you tap a money source like home equity, 401k, or relative to pay 1-time settlements right away. If you are the latter, again, check out the free evaluation form. Good luck.

Answer 5

You don't need anyone to do it for you. All they do is negotiate your debts for you and collect a fee. You can do it yourself!

Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.

Go check out Dave's website as well.

www.daveramsey.com

Answer 6

these companies are a joke. the charge you for something that you can do and should do yourself. They will trash your credit.

What they do is not pay your creditors for months and then try to get them to settle for less. By then your credit is trash. If that's the route you need to go do it yourself and save the fees they charge to put on your debt.

Remember. If you use one of companies you are still responsible for the debt. If they dont pay your creditors. Your creditors can sue you not the company that is handling it.