non-profit agency -vs- alternative: cost, time, service ...

Is there any advantage to using a non-profit agency to handle my "debt consolidation/settlement" versus using another agency such as one that hires a lawyer, has retainer fees, etc?? Are there minimal savings with the n/p agency or are there better results achieved when using a f/p agency?

Im in NY and NYS law says that debt consolidation agencies can not charge you an upfront fee, however the f/p agency I have been talking with mentions that their policy is the first few months payments cover the retainer fee for the lawyer (appx 8% of your total debt) and they also mention a 15% fee for the amount that they are saving me... Doe these sound like outrageous fees or is this an industry standard?

Also, the f/p agency claims that it is over in roughly 2 years. However it looks as if my credit will be significantly hurt during the first portion of it due to me having to go deliquent on my accounts (at the request of the agency) - How bad is my credit being hurt, and its this a standard practice?

Thank you in advance for your help.
Regards,
D2BDF

D2BDF,

Welcome to forums.

Don't judge a debt consolidation company on the basis of the fees they demand. Check what are the services they offer. There are some settlement companies that start taking money from you and keep it with them for first few months. This policy is not going to help you anyway. It will just increase the amount of late fees, that's it.

Again, some companies are there that do not help customers improve their score. But a good debt consolidation company should negotiate with your creditors to make your credit healthy.

Moreover, if any company claims to be a non-profit one, some hidden costs might be there and upfront free services are not very reliable. IMHO, no one would mind to pay some charges when credit is the matter. Better you ask a company what are the services they provide? Check the list of services that a good debt consolidation company should offer you-

http://www.debtconsolidationcare.com/help.html

A successful debt consolidation program is not harsh to your credit. See how it helps to obtain higher score-

http://www.debtconsolidationcare.com...ol-result.html

So would chosing a company that takes this approach to my debt consolidation not be a good choice? I can see how it wouldnt help my situation, and would only acrue more fees/charges...

Hi daring2Bdebtfree

Welcome to the forums

It is better to research on any company before you give them the charge to handle your finance. Check with the BBB and the state attorney general office and see if any consumer complaints are recorded against them.

Besides, the company will put all the terms and conditions in writing before entering into an agreement with you. You are entitled to get the monthly statements of all your payments and have copies of the correspondences. This way, you will be assured of your payments going to the right place.

Take a free counseling in this website too and talk with the consultant. Your counseling is free here. Do a comparison and select the company of your choice.

Regards
Roxette

I had been contacted by someone that got my info from this website and the company this person works for is a member of the BBB, but they have had 11 complaints in the last 12 months. Does that sound like alot of occurances?

I've been able to see copies of the contracts, and I have not yet signed anything- so Im hoping that protects me from having any money withdrawn from my checking acct (they needed my info to set me up for the contracts- which i have not yet signed).

Hi daring2Bdebtfree

There are times when some consumers file their complaints under specific circumstances and the BBB is involved to investigate the matter. Not all the times, it means that the company is doing bad practices. I am sure that the company has resolved the consumer complaints and now has a clean slate.

Since the company is a BBB member, you can be assured that they are doing their business with the consumers in legal terms. Also, you are protected because the company has put the agreement in writing and you can take any actions if required. I will suggest you to have a discussion with the consultant and after you feel satisfied, sign the agreement.

This company has partnership with some of the top debt consolidation companies all over the United States. Based on the consumers' feedback, the company has been chosen to work in your program. So, you don't need to worry too much in this matter.

Regards
Roxette

D2BDF,

BBB also does not put much stress on the number of complaints it processes. The number of complaints can increase as a business grows. The thing is how much responsive are they towards consumers' queries. If the company has handled all the complaints with care, you can rely on them.

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