DEBT REDUCTION COMPANIES

I'm sure there are good one's out there but you better check them out real good. I would sign up for a free consultation and see what they have to say. Always check the BBB and search this site for more information on any company.

How about trying to do your own negotiating and settling your own debt. Many people here do just that.

Do you know if the creditors actually are willing to work with you? How do you go about doing that?

I agree with mom for once....imagine that! on statement ....free consultation on site is the way to go..
however my opinion..don't rely on BBB report..only read BBB complaints from consumers on said company...
keep in mind...anyone can post a complaint with BBB...whether complaint is valid or not.....(someone else trolling... posing.....in competing business etc....)
but....pit hello!!!!!!and welcome!!!!!....
I'm assuming you already googled site in question before ending up here.....to find out info on questionable people....all I can tell ya pit..is there are some very wonderful members here who can offer you some extremely good advice!

hi pit! there are many good debt reduction companies but it becomes very difficult to separate a legitimate company from a scam. there are many who will offer you drastic reductions and then you may find that your creditors are not being paid on time. as others have said, you can also go in on your own, but if the debt amount is very large then i think you should rely on a professional to handle your accounts.
check with the BBB before finalizing the firm. you may also sign up for the free consultation and they will really come up effective solutions to your problem.

There are definately reputable debt settlement Companies out there. There are also companies that are jumping on the "debt settlement" band-wagon and do not know what they are doing except collecting their fees. You want a company that you can trust, who has exceptional service levels, where your money is put into an escrow account and is 'YOUR' money! That way, all monies collected can be withdrawn by you if you feel the program is not suiting your needs or expectations!

Now, let me address some points that I see posted in this forum often. The BBB does not like debt settlement companies. It is an industry known fact and most Debt Settlement companies will hold an unfavorable rating. This is a result of non-disclosure on behalf of the Settlement companies to their customers which in turn do not understand the program.

Every Reputable Debt Settlement Company you receive a quote from (and the quote should be COMPLIMENTARY / FREE!) should inform you of the following UP FRONT:
1. Fees are usually 15-18% of enrolled balance

2. Settlement does negatively effect your credit report--but chances are your credit is on its way downward if your balances are maxxed out and if you are struggling with making your payments on time (but heals itself sooner than CCCS or Bankruptcy!)

3. The average DS program will be approx 36 months

4. The average of the Savings will be 50% (some settle at 100%, some at 20%!)

5. You can settle these accounts yourself! (but do you cut your own hair, perform your own heart surgery, repair your own car?--usually we seek a professional with expertise to do these things for us--because they have rapport and experience we do not have)

6. Your first 3 payments or so will go towards your fees. There is a monthly service fee. If you pay more than $15 per month for this, run the other way!

7. Logically, do the math...if your payments are $300 per month, and a company tells you they can pay off your $15,000 in credit in less than a year... Can that actually work?

8. Something that Settlement companies can usually work out that YOU may not be able to work out is Settlement on a pay plan! This is what some very reputable companies may be able to do for you, that you may not be able to do for yourself. Because they are sending thousands of bulk money to these creditors at times, so the settlement companies have more leverage at times than the average consumer.


I hope this enlightens any readers on the fence about settlement. It is a smart choice as long as you know what your expectations are! The CONSUMERS who complaining were not completely informed or they chose a company which did not practice fair and honestly with their clients--and those companies should be shut down.

Good Luck to you! and God Bless!

If you need any additional questions answered, I am an email away!

san I think ...once again great post!!!!
I personally feel that if a debt settlement co would pay the BBB fees to be a member in good standing ..the BBB would represent and state said company follows all rules( until too many complaints have been filed against them)... they defend members who pay big fees to belong...( which is what many many years ago left me feeling their opinions were no longer unbiased )...I could be wrong tho....
I also add ...Good luck ! and google BBB in your area with company name..if you find complaints..go to the next sight and try to find opinions from a company who doesn't require membership payments for the "Attaboy" pat on the back encouraging you to do business with them!

Was thinking of doing this stuff myself, until i read this...
"Because they are sending thousands of bulk money to these creditors at times, so the settlement companies have more leverage at times than the average consumer"
That makes a lot of sence... but this frightens me...
"1. Fees are usually 15-18% of enrolled balance"
if our CC balances are around $20,000 - i'm looking at paying out around $4,000 for fee's...
this doesn't seem right? or is it?

Also...want to add, there are some 'companies' (spam..more like it) that will try and post, on this forum. It may sound good, from the 'surface', but...before you decide, REALLY look into them. The last few days, there was a 'Lawyer' duplicating about "fixing your credit." Just want people to be aware of this.

The posting from Credit Exchange....be very careful to who you deal with. They find the consolidation and settlement companies for you and the fees are outrageous. I paid $700.00 just to get started on the consolidation program and addional $60.00 per month for services included with my payment to my creditors. After negotiations, my interest rates were still high and monthly payments were high. When I tried calling credit exchange, they no longer would help me after I signed with the company they referred me to.

Thank you for the info. I filled out the info just to the right of the screen and someone from Superior Debt is supposed to be calling me. Are they a company that is part of this forum or do they just advertise here? I spoke with the CCCS and have to fill out papers to get an appointment with them. Any good info that I would need to know about them? Do they really show up on your credit report as filing bankrupt?

Rather you are filing bankrupt or receiving settlement or counseloring, they will all show up on you credit report negatively. Your main goal is to get out of debt, once that is achieve, you can start rebuilding your credit.