Debt Counseling 101 - A Word of
Warning About Debt Counseling

Like a thieves in the night, numerous legitimate looking companies that claim to provide debt counseling are turning out to be nothing more than crafty charlatans. In the past five years the FTC has shut down a bevy of such companies. Alarmingly, thousands of debt laden consumers trusted these companies to help them out of their financial crisis. However, as you’re going to find out, it didn’t happen. Many of these individuals ended up in worse condition, some even being forced to file bankruptcy.

Debt Counseling 101… Debtors Beware
The numbers are staggering, thousands of consumers, already in financial crises were determined to find help. Instead, they ended up bilked out of more than $100 million dollars by individuals portraying themselves as being legitimate debt counseling companies.

It was a brilliant scheme. The companies, many of which claimed to be nonprofit, persuaded debtors to sign up for bogus DMPs Debt Management Programs, DSPs Debt Settlement Programs. DEPs Debt Elimination Plans and DNPs Debt Negotiation Plans. Rather than doing as promised, the bills went unpaid and the debtors found themselves in deeper holes with creditors. Simply put, these companies posed as debt counseling organizations, took the money and ran.

As a consequence, the majority of debtors who signed up with any of these companies faced steeper interest charges, plus accruing penalties. For some, the additional stress forced them to do something they fought hard not to do; file bankruptcy.

National Consumer Council Declared a Non-Profit Fraud
In their heyday, they looked like the answer to America’s debt problems. But in reality, the National Consumer Council, with businesses registered in Arizona, California, and Nevada, were nothing more than a highly polished sham. In their advertisements, they claimed to be non-profit and boastfully promised free debt counseling. Apparently their slick sales representatives were masters at persuading people that free doesn’t mean it doesn’t cost anything.

Here’s how their scheme worked...

(1) When consumers sought help from the NCC, the firm pulled a bait and switch and corralled them over to one of their affiliates.
(2) The affiliate then sold them on the idea of paying thousands of dollars to sign up for one of their unbelievable debt negotiation programs.
(3) Once they signed up and started paying the debt counseling company, the expectation was that the company would pay the creditors; it never happened!

Get a hold of this figure provided by the FTC Federal Trade Commission. “Just 2 percent of the consumers who enrolled in the debt negotiation program -- or 638 people out of 44,844 -- finished the program…” Did you really grasp that? Less than three percent of the people completed the program? I’m here to tell you that if you are considering debt counseling, be careful and be cautious.

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt.

 Source: http://debterasure.com/