I get questions all the time about the best ways to get out of debt. I have blogged in the past about different options, one being debt settlement.
Debt Settlement is regulated another a reviews to results a by the FTC. In 2010, the FTC imposed some new requirements for companies offering Debt Settlement. One of the biggest new requirements was Debt Settlement companies could no longer collect their fees until after a debt was settled. They called this an Advance Fee Ban. From what I hear, many companies found loop holes in this ban by meeting with the client face to face.
So, does Debt Settlement work? Well, based on my experience you will get many different answers to this question. I know many consumers who were experiencing financial hardship and used legitimate Debt Settlement companies to assist them in getting out of debt allowing them to avoid Bankruptcy. I also have heard many horror stories related to Debt Settlement where people entered this type of program and every penny they sent in went to fees and none of their money went to settle their debt. If a company charges all their Debt Settlement fees upfront, this is very bad for a consumer. Debt Settlement is paid in full in advance and now was about to actually start to settle your debts, what incentive do they have to get you the best settlements? NONE
CureMyScore.com has helped many people experiencing financial hardship get out debt. CureMyScore.com never has and never will charge any advance fees to consumers. Regardless of what company you choose to work with, my best advice is only enter Debt Settlement when you really are having a financial hardship and be certain to choose a reputable company who does not charge fees in advance. Companies are going to have fees and that is fine, just make sure they only charge fees AFTER they successfully settled your debt.
If you are not careful, you may inadvertently make a deal with the Devil which only leads to more financial hardship.
Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness work in both Federal and State Court. With more than 20 years experience working in credit along with his extensive past Mortgage Originating career, he’s dedicated to sharing his knowledge to educating consumers.
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