Why Are So Many
Illegitimate
Debt Counseling Companies Popping
Up? (Part 1)
If you have performed any type of search on the Internet for
debt counseling, you’ll find an endless number of companies
making claims that seem almost unreal. Claims such as being
able to negotiate your interest rates down to 0%. Or reduce the
amount you owe down to pennies on the dollar. And of course,
the big one, the ability (they energetically claim) to
instantly wipe out all of your debts. Unfortunately, debtors
are finding out the hard way, many of these companies are
turning out to be shams…
Need Debt Counseling? Proceed With
Caution…
If you have not been informed, this may be your one and only
warning, so pay attention! Millions of Americans are
desperately seeking help with solving their debt dilemmas.
Unscrupulous individuals salivate over the staggering numbers
and the desperation of the people and see easy marks.
It’s like my father used to say, “A drowning man will grab
the blade of a sword.” It’s a sad fact, but people drowning in
debt will grab at almost anything, even if it seems way too
good to be true.
Any genuine debt counselor with industry experience,
financial knowledge and integrity will confirm this next
fact:
The majority of the (DEPs) Debt Elimination Plans, (DMPs)
Debt Management Programs,
DTP Debt Termination
Programs and DSPs Debt Settlement Plans, are
great for the debt counseling companies that advertise them;
but absolutely terrible for consumers. Here are some examples
as to why.
- In all most all cases, the consumer has to pay an
upfront fee to initiate any of these plans. The fees range
usually from $1000, $2000 and up. Hold your horses! What is
a person, who is straddled in debt doing handing over
thousands of dollars for debt counseling? That should be an
immediate red flag, but thousands of Americans fall for
this slick trick.
- Here is slight of hand that happens virtually everyday.
Joe & Mary Blow are up to their ears in bills and they
need immediate debt help. You’ve heard the expression, “The
straw that broke the camel’s back?” With Joe and Mary Blow,
that straw would be just one more bill, even if it were
just $7.50 per month. They see a debt counseling company
advertising on television and decide to sign up for their
debt reduction program. The cost? An additional $45.00 per
month, plus administrative fees. If they can’t afford an
extra payment of $7.50 per month, how in the world are they
going to afford an extra $45.00 p/m plus the other fees?
They can’t! But these sales reps are so G-O-O-D, they can
sell ice to an Eskimo!
- Then, there is the interest reduction trick. It’s no
telling how many people have fallen for this one. The bogus
debt counseling company claims they can reduce their
client’s interest rates all the way down to 1% to 1.5%,
plus rebuild their credit. Are you kidding me? What
debt-laden person with bad credit is going to turn down
such an incredible offer? Not many! The truth is; no
company can guarantee they are able to reduce interest.
Only in rare circumstances is a bank, credit card company
or finance company going to reduce their interest rate. As
a matter of fact, when a person falls behind in their
bills, if they signed an agreement that allows the company
to adjust the interest rate, you can best believe, THEIR
RATE IS GOING UP!
Part 2 of
Why Are So Many Illegitimate Debt Counseling Companies Popping
Up?
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.
For more information on this topic or any other issue
related to getting out of debt, living debt free, debt
management, debt relief, the Fair
Debt Collection Practices Act and stopping debt collectors in
their tracks, please visit www.DebtErasure.com
Source: http://debterasure.com/
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