I have heard recently agency out there that will reduce its debt by about 70%, just by talking to them somehow they [creditors]? Do you know anything about this method? Is it legit? Even I heard on my local radio station and speaking as totally legit. -- Kevin
Answer:
It really depends on what you mean by " reduce its debt by 70% " and most likely " up 70% " and not all customers can get 70% of the debt reduction.
What could say this?
Several things. One could be bankruptcy. Several companies " " " counselors and debt " are just fronts for bankruptcy lawyers. A Chapter 13 bankruptcy can significantly reduce their debt. All creditors get notified and have to respond in order to maintain its claim on you. If they do not respond, they lose out and you do not have to repay the debt.
A judge then move on to your income and decide what you can afford to repay their debts every month. S / he then decides the time is to be paid and what portion of each payment that goes to the outstanding creditors.
But, of course, a bankruptcy on your credit report completely sleeves of their claim. You can still borrow money, but we will have to pay rates 25% and will cost much more in the long run. Their bankruptcy can not be approved and that could be terminated by the attorney for time.
OR money might be one way of dealing with debt. The company seeks to its creditors and tells them that are considering bankruptcy. If they want to help you avoid bankruptcy (and thus preserve their debt with them) have to reduce the amount you owe, reduce the interest rate or halt the interest charges.
Sometimes this works, sometimes not. But when he writes a creditor of part of their debts, typically report to credit agencies and appears on your credit report and also adversely affects their credit scores. They can flag your file as a possible bad debt and later deny that the additional credit or services.
OR might is trying to help reduce their monthly payments, usually through a debt consolidation loan, equity housing or a loan refinancing of your home. If this is the case and you do not have a home, which quickly " refer to someone who can help you " (yeah, right!) Why are simply seeking to make a quick $ 5000 on charges rent. These companies are just fronts for mortgage brokers.
OR other companies who want to make a single payment offered to them and pay your bills for you. They use claims such as reducing its debt from 70% to get you in their door. While it may seem attractive to only have to make one payment instead of 10, there are usually high start-up and share that the company pays monthly fees of up to $ 50 or more for this service. (10 stamps are much cheaper.)
The problem with this arrangement is that you have not done anything to change the habits and actions they are in trouble to begin with. And you do not have direct information about how the debts are paid. And if the company should have financial problems and lose some of your payments, your credit report might get beaten (this happened recently in the State of Utah).
These companies realize that probably will continue into more debt, but to do this we will continue to be a good customer for them. If they make money you have a reason to continue to make money from you. So what they really want to see get completely debt free, or simply being a steady customer?
Watch out for companies that want a large advance fees (over $ 200), or monthly fees will be charged for managing their bills. Beware of companies that claim they can clear your credit report; try some illegal tactics to (not them) in trouble. Remember that you are considering employing negotiate with creditors on their behalf, make sure you know exactly what they are going to do and say. If you do not disclose their methods, see out.
Also remember, as they say, " Do not believe everything you read ", do not believe everything they hear, especially in advertising. Radio stations and television do not usually have a lot of responsibility for what their advertisers say, which corresponds to the FCC and the FTC. If you buy an ad you can say almost anything you want as long as they do not receive the station in trouble. See some 2 hour infomercials; are a hoot!
David Berky is president of Simple Joe, Inc. makers of the eraser debt popular PC software that helps create a plan for rapid reduction of debt out of debt much sooner and save $ 1000s in concept interests. Visit http://www.simplejoe.com for more information. prince babara
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