Debt Relief Companies?

Question

I am looking at Debt Relief Companies to help me get out of a hole I have dug for myself. So far, I have looked at Credit Solutions and Freedom Debt Relief. Does anyone have any advice on these specific companies or recommend a specific company?

Answer 1

RE: "Freedom Debt Relief"

They make you agree to NOT make any payments to your creditors and pay into an account with them instead. Once you build up a certain amount in your account with them they have "negotiating power" to call your creditors and say (on your behalf), "Our client is prepared to pay you $X right now to settle this debt."

If the creditor accepts the payoff, they pay it and you owe nothing more to that creditor... BUT the creditors can AND DO put the settlement on your credit report which reflects as a negative.

That is why "Freedom Debt Relief" offers the second part of the fix which is instructing you on how to get those negative remarks off your credit report. In my opinion they are rather smug in their pitch on this part claiming that because most creditors don't want to take the time and expense to fight your request for deletion that they will just agree to delete it without a fight.

To me, that sounds like a crapshoot.

No matter what, you are in for some hard work that will require dicipline. If you use "Freedom Debt Relief" your situation will get a whole lot worse before it gets a little better.

As for Credit Solutions, I have never heard of them. Sorry.

If you decide to go it on your own, here is an article that may interest you called "The Most Effective Way to Pay Off Your Credit Card Debt".

http://www.fastcreditcardoffer.com/article/the-most-effective-way-to-pay-off-your-credit-card-debt.aspx

Good luck to you.

Answer 2

When you are looking for "debt relief" companies make sure these companies are just giving advice on how to save and lower debt. NOT and that is a big NOT helping you by loaning you the money to get out of the debt you are already in. Many debt relief and consolidation companies are nothing more than Bookies or Loan sharks. They will loan you just enough money to pay of all of your bills by going to your creditors charging you bills off and paying a discounted rate for your debt. They then place "their" interest on the debt and report to the credit bureaus. This kills your credit score and your chances of getting credit in the future because it tells everyone that you could not handle the debt you were given (when in most cases your debt can shrink by changing your budget and cutting out certain luxuries ie. cable, name brands, habits) and lets not even talk about what happens when you miss a payment to the "debt relief or consolidation company" They will literally destroy you. This is why several of these companies are loosing their "non-profit" status as we speak because they are really making a nice chunk o' change from relieving you of your debt by buying it and becoming the bill collector. Don't be fooled by the pretty faces on the websites. Do some serious research and look for ADVICE not LOANS.

Answer 3

Most debt relief/consolidation/couseling companies will take their fees up front and trash your credit.

If you really need help go thru nfcc.org. They are legit non-profit companies and will help you set up a budget.

You need to set up a strict budget. Eliminate the extras. Put every penny you can squeeze out of that budget on the highest interest rate debt, while making minimum payments on the rest. When the highest rate debt is paid off, move to the next, till they are all paid in full.

Answer 4

Well I am a big Dave Ramsey fan and I would suggest you check one of his books out from the library. He has good ideas. That said, I think some of these companies are good in the fact that the creditors will stop calling you. I don't want one of the two you have listed to sue me so I think you should go to BBB.com to check them out. There are some reputable ones and BBB will give you a good idea of who. Just remember, you might want to start a Dave Ramsey plan even if you are going the counselor route because you can never miss a payment or get behind again or all your work will be for nothing. Good luck.

Answer 5

what these companies do is not pay your creditors for months and then trys to get them to settle for less.
You can do that yourself. Just dont pay them for months and they will call you. Save the fees they charge and use it on the debt. Be sure to get everything in writing and never ever give them electronic access to your bank acount. Send a cashiers check.
If you do use one of these rip off companies remember one thing. If they dont pay your creditor you are responsible to pay the debt not the company you hired. Your creditors can take you to court to get it.