If you’re a night owl you might see these cheesy commercials with the screaming sales pitchman about how they can get you out of debt for pennies on the dollar and keep you out of bankruptcy.
Debt settlement is when you agree to pay a creditor less than you owe.
That sounds great doesn’t it?
It’s a scam.
I’ve heard of a lot of scams, but I tell you, this one is despicable. Scratch that; it’s downright unforgivable.
It is an outrage that unscrupulous debt settlement companies are allowed to peddle their false promises and take the last dollars from working families that have fallen on hard times,” – Sally Greenberg, executive director of the National Consumers League.
Is debt settlement right for me?
Let me make this crystal clear: NO!
Debt settlement is going to put a big black mark on your credit score and the fees you pay the settlement firm may wipe out any savings you got from slimming down your debt.
I understand if you’re reading this you may be in a bad place financially and looking for a way out. Debt settlement is not the answer.
Debt settlement isn’t legit?
It’s all smoke and mirrors folks. You have to pay debt settlement companies
- big upfront fees and
- monthly fees on top of that
How does debt settlement claim to work?
Companies that promise debt settlement typically tell you to stop paying your credit card bills and wait for Visa or MasterCard to cry uncle and agree to work with you.
But while you’re doing this you’re running up the late fees and interest on your cards. You’re incurring more debt in the process. Are you with me?
Debt settlement may leave you deeper in debt than you were when you started because of what the settlement company wants to charge you.
Plus you have all the extra fees you have to pay while you’re waiting for the credit card company to negotiate with you.
Please don’t fall for these scammers, they are not out to help you. It’s easy to fall prey to the hope they are promising, but the reality is much different than the promises.
Do you need real debt help?
You’re now armed with the knowledge about how debt consolidation works (it doesn’t work).
Now I’ve been in debt but never at such a low point as needing a debt consolidation service. But you don’t need a PhD to see it’s a ripoff. Bad for you. Bad for your wallet. Stupid even – now that you have the facts.
The real way to get out of debt is not debt consolidation. Try a proven plan to get out of debt plan used by millions of Americans successfully. This plan is free, and it’s freeing.
What are your thoughts on debt settlement companies? Please leave a comment below.
Image credit: Lending Memo