They run many low-budget TV ads. My question is, not that I need it now, but what are the catches? Just so I know. Because I know, nothing in life is as easy or as free as it comes off as.
2007-09-01 22:03:16 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
There are a lot of people who simply fail to properly manage their finances. Then they look for a quick, easy out. These companies promise to wave a magic wand and make everything hunky dory.
Problem is most of these companies are pure scam. They take big fees up front and do very little. If you make monthly payments to them, they hold your money and don't pay your creditors. Then when your accounts are way past due, they offer settlements. All of which trashes you credit score.
2007-09-02 05:27:34 · answer #1 · answered by bdancer222 7 · 2⤊ 0⤋
I think the biggest problem is that often when we use debt consolidation, it is a quick fix and we don't address the real underlying issue which is that we don't know how to manage our money, especially credit cards. This makes it more likely that we will just end up exactly in the same situation in a few years.
There are so many great financial authors out there right now that teach good money management skills, I think there is someone out there for everyone!
http://financialplan.about.com/od/moneytools/l/aatpbooks.htm
http://www.getrichslowly.org/blog/
http://www.thesimpledollar.com/
Educate yourself, reading a variety of authors with different opinions.
You would be surprised at how much knowledge is out there on the web for free! There is much to learn about credit and debt and the best time to learn is BEFORE you get in trouble!
2007-09-02 01:20:12 · answer #2 · answered by Lynn 5 · 0⤊ 0⤋
FEES! The service they provide is not free and can be very expensive. The reality is that anything they do, you can actually do yourself. You can call your creditors yourself and most will work with you to help you out if you are honest. If you let bills go and don't communicate, that's when you get the problems.
2007-09-02 01:06:08 · answer #3 · answered by Michael B - Prop. 8 Repealed! 7 · 1⤊ 0⤋
I have used one and there were two catches, one they did not do any of the work - you had to call all of your credit agencies and ask for the help, two they charge a pretty hefty fee for this advise (which is all that it is since they do no work)
2007-09-02 00:23:42 · answer #4 · answered by startrektosnewenterpriselovethem 6 · 1⤊ 0⤋