Henry and his wife went broke, then worked out a payment plan with Citibank to settle their debt. The idea was to be proactive in order to avoid harassment about bills they couldn’t afford. [More]
Steer clear of debt settlement agencies. A good deal charge unnecessary fees and there’s really nothing they can do legally that you can’t do on your own. Some of them are even outright fraudsters. [More]
As the economy has weakened and unemployment has caused debt to become unmanageable for many people — one type of company has flourished — debt-settlement services. [More]
After spending a year (one of the worst of my life) working at a debt settlement company, I feel that I am obligated to warn as many consumers as possible about how badly you can ruin your financial situation by using one of these companies. My new job is at an all natural bakery, I no longer wish to swerve my truck into a tree on the way to work. Debt settlement is the process of eliminating your debt by ceasing payment to the creditor, and then negotiating with the card companies or collection agency to pay less than the balance owed. The debt settlement company charges a rather hefty fee for this service; however, the consumer should be saving money on the deal because they are paying significantly reduced balances to clear their debt. This is how it is supposed to work. This is not how it usually works.