Debt Settlement Alert - See What Happens to Most People Who Sign Up For This Form of Debt Solution
Instantly Get Out of Debt; We Guarantee Results The advertisements from the debt settlement companies starting popping up everywhere; on television, on the radio, in the paper newspapers and of course all over the Internet.
It was a marketing blitz that seemed to lend credence to the fact that, this service must be legit.
Many individuals who signed up for the service did so only because they felt like.
"Since so many people are jumping on board, it must be for real.
" Add that thought pattern to the highly appealing advertisements and smooth but high-pressured sales pitches and you can see why the client lists of the debt settlement companies rapidly swelled.
Check out some of the promises these companies make.
-We Will Lower Your Debt by 70% to 80% -We can settle your debts pennies on the dollar -Be Debt free in Less Than 12 Months -Call 800-XXX-XXXX To Cancel Credit Card Debt And Start Saving Money -No service fees unless we save you at least 70% -Instant debt relief, call 800 XXX-XXXX today -Experience Debt Settlement With Free Grant Money -Christian Debt Settlement; the Christian Way to resolve your Debt Problem -Want to be Totally Debt Free in less than 12 months? Apply for membership now.
We Guarantee results It was and is those types of ads that get people believing these companies can get the job done.
Is it really as easy as it sounds? The answer is, "NO!" But most of these companies understand the terrain.
The people who become their clients are usually desperate and will almost grab at anything, even if it sounds too good to be true.
One company advertised they had been settling debts for over twenty five years; they had only been in business for eleven months.
They got clients because they knew how to use hype and scare tactics.
Here's the MAJOR flaw with almost all of these debt settlement companies.
They all charge a fee for their services.
No problem there.
The issue is HOW and WHEN that fee is paid.
These companies collect all of fees before they attempt to do anything.
It works like this.
A couple has $35,218.
00 in credit card debt they want to get wiped out.
They sign an agreement with Debt Be Gone Services and agree to pay a 17% service fee, a $225.
00 processing fee, plus a monthly maintenance charge of $55.
00 to oversee the settlement process.
If the couple stays on the plan for 36 months, they will have paid Debt Be Gone Services approximately $8192.
06.
It doesn't take a geological scientist to realize this is not a good deal.
But it gets worse! You may not know this, but about 98% of these companies use what's called the front loaded fee structure.
Meaning that you pay ALL the fees up front, usually over the first 14 months of the program.
Clients send the companies anywhere from $600 to $800 a month and more.
BUT, until the settlement fees are paid, they take no action on your overdue bills.
Consequently, your creditors are not receiving ANY payments from you, and eventually you start receiving notices collection calls and potentially have legal action taken against you.
If that's not a MAJOR flaw, I don't know what is.
It was a marketing blitz that seemed to lend credence to the fact that, this service must be legit.
Many individuals who signed up for the service did so only because they felt like.
"Since so many people are jumping on board, it must be for real.
" Add that thought pattern to the highly appealing advertisements and smooth but high-pressured sales pitches and you can see why the client lists of the debt settlement companies rapidly swelled.
Check out some of the promises these companies make.
-We Will Lower Your Debt by 70% to 80% -We can settle your debts pennies on the dollar -Be Debt free in Less Than 12 Months -Call 800-XXX-XXXX To Cancel Credit Card Debt And Start Saving Money -No service fees unless we save you at least 70% -Instant debt relief, call 800 XXX-XXXX today -Experience Debt Settlement With Free Grant Money -Christian Debt Settlement; the Christian Way to resolve your Debt Problem -Want to be Totally Debt Free in less than 12 months? Apply for membership now.
We Guarantee results It was and is those types of ads that get people believing these companies can get the job done.
Is it really as easy as it sounds? The answer is, "NO!" But most of these companies understand the terrain.
The people who become their clients are usually desperate and will almost grab at anything, even if it sounds too good to be true.
One company advertised they had been settling debts for over twenty five years; they had only been in business for eleven months.
They got clients because they knew how to use hype and scare tactics.
Here's the MAJOR flaw with almost all of these debt settlement companies.
They all charge a fee for their services.
No problem there.
The issue is HOW and WHEN that fee is paid.
These companies collect all of fees before they attempt to do anything.
It works like this.
A couple has $35,218.
00 in credit card debt they want to get wiped out.
They sign an agreement with Debt Be Gone Services and agree to pay a 17% service fee, a $225.
00 processing fee, plus a monthly maintenance charge of $55.
00 to oversee the settlement process.
If the couple stays on the plan for 36 months, they will have paid Debt Be Gone Services approximately $8192.
06.
It doesn't take a geological scientist to realize this is not a good deal.
But it gets worse! You may not know this, but about 98% of these companies use what's called the front loaded fee structure.
Meaning that you pay ALL the fees up front, usually over the first 14 months of the program.
Clients send the companies anywhere from $600 to $800 a month and more.
BUT, until the settlement fees are paid, they take no action on your overdue bills.
Consequently, your creditors are not receiving ANY payments from you, and eventually you start receiving notices collection calls and potentially have legal action taken against you.
If that's not a MAJOR flaw, I don't know what is.
Source...