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Debt Settlement Companies Raise Red Flags

Posted Monday, November 09, 2009
by Greg Hudson

If you're overwhelmed in debt, those 'be debt free in 12 months' commercials might sound pretty tempting. More so if creditors are calling you every day.

As tempting as their ads may be, debt settlement companies can leave you in worse shape. Many are outright scams, The Detroit News reported.

"If a company's making big promises, it should raise red flags," said Alison Southwick of the Better Business Bureau. "Getting out of debt is not easy. It takes time."

Complaints against debt settlement firms rose by almost 19 percent in 2008 over the previous year.

To read the full article at The Detroit News, click here.

Comments

THIS IS TO COMMENT ON GREG HUDSONS SMUGG UNIMFORMED POST. I STARTED IN THIS INDUSTRY IN 2002 I HAVE HELPED HUNDREDS AVOID BANKRUPCY THROUGH SETTLEMENT. GREG THE BEST POSSABLE SETTLTMENT PROGRAM SHOULD RUN 12 TO 30 M0NTHS NO LONGER. ALL OF MY CLIENTS END UP WITH EXELENT RESULTS AS LONG AS THEY STAY IN AND CAN SAVE THE MONEY DURING THAT TIME FRAME. THE LONGER THEY GO OVER 30 MONTHS THE LESS THE BENEFIT. PEOPLE WHO CHOOSE A LONGER PROGRAM ARE CONTRIBUTING SO LITTLE TO THE PROGRAM THAT THEY SOMTIMES DROP OUT BEFORE THY EXPERIANCE THERE FIRST SETTLEMENT. IF YOU DO NOT HAVE ENOUGH DISPOSIBLE INCOME TO BE IN A PROGRAM THAT IS 36 MONTHS OR LESS THEN YOU SHOULD FILE BANKRUPCY. WWW.NOBK.COM FREEDOM CREDIT SOLUTIONS INC CA.
Comment By CLIFFORD SUVA At 1/1/0001 12:00 AM
I'm looking desperately a way to consolidate my debts. How can I find an organization that can be trusted? I went to US Debt Settlement, I found out that they charged a lot before they start making payments to my creditors. I'm in a bigger mess now!
Comment By Margarita Vizcaya At 2/17/2010 10:26 AM
I am sick and tired of the badgering that the Debt Settlement industry is recieving from the press. This is an industry that is providing an very valuable service to consumers nationwide, in a time when they desperately need help.

The fact that Consumer Credit Counsoling does not work, acknowledged by the FTC in recent hearings, never comes up in the press. Is it possible that the banks that run these organizations are steering the press to drive consumers to these conventional products that they control. Absolutley!

The real deal - Debt Settlement works! And, saves consumers Millions every single month. Yes, there are bad companies out there. Find a good one and you'll be much happier in the long run.
Comment By Mark At 2/3/2010 9:52 AM

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