What is the deal with the debt reduction programs where you do not have to consolidate or take a new loan?

Question

I mean, c'mon - how can your company combine and reduce my debt by over half, without filing bankrupt? Whats the deal? And you say my credit rating will not be hurt? What about all the debt I have from buying that ocean front property in Colorado?

yeah yeah...the companies and their websites are always vague about what they actually do...a link to one of the services does not answer the question of how they can take my debt and reduce it with generally no strings or addtional debt.

I am not in touble with debt, I just find it ironic that us, as a society, have gone to the extent of overburdening credit debt and then finding ways to eliminate the responsibility for ones own actions. I feel like I could have a free pass to get whatever materialistic things I want and then never have to repay. Is this the beginnings of a new socialistic society? A trial of materialistic communism? The whole idea of wasteful materialism sanctioned by the government sickens me.

Answer 1

There are a lot of debt relief/counseling companies that are scams. They take their fees up front and trash your credit. Most of the time they cannot do what the promise.

It is possible to settle old debt for less than the full amount but you don't need to pay a company to do that for you. Just contact the creditor. Be sure to get any settlement agreement in writing and don't give them access to your bank account.

If you have a lot of debt and need help, go to this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Service (CCCS), a legit, non-profit company that offers free counseling. They also have debt management program available, if you qualify, at no fee. They can look at your finances and advise you of the best way to proceed.

Answer 2

It can be done, but be very very careful or you will lose your shirt.