Debt Settlement Tips - Why to Use the Threat of Bankruptcy to Get Debt Relief?

1. Research study! Research study! Research study! You will hear me say this dozen of times. As a consumer, it is our obligation to be informed and notified. The illiteracy, laziness, or in my case, REJECTION, gets us in trouble. I pledged to never ever once again be an uninformed customer. With that in mind, I put all of my efforts into finding the best debt settlement options. I invested 4 weeks and about 40 hours on the phone talking with various companies. There is a barrage of info out there. Simply by typing financial obligation settlement into Google, you will get 8,650,000 results. Click HERE. Insane. It is intimidating to cull through these resources and analyze what the hell they are providing. I took the time to comprehend my alternatives. My first calls were to the obvious huge business like Credit Solutions, Ameridebt and CuraDebt. However I likewise checked out some of the lesser-known business like Pacific Financial obligation. Here was the basic offer: * I was to deposit $2000/month into an escrow account. * The very first 6 months of these payments into that escrow account would go towards paying the debt settlement company for their services. * I would continue to make $2000 payments for around 36 months. * As settlement provides can be found in, they would consult me. * The banks would be paid from this settlement account. * In 36 months, I would run out debt. Initially, I was extremely fired up and relieved about an option to my problem. Below are the approximated savings and costs from 2 of the companies I spoke with. As you can see there is an extraordinary amount of difference. A great deal of that handle the charges and the length of time you take to settle. CuraDebt Strategy If they got a 50% savings on my $130,000 of debt, it would take 41 months of $2000/month payments to leave financial obligation. Overall expense including settlements and costs:$ 81,900. If they got a 60% savings on my $130,000 of financial obligation, it would take 36 months of $2000/month payments to leave financial obligation. Total cost consisting of settlements and charges: $71,500. If they a 75% cost savings on my $130,000 of financial obligation, it would take 28 months of $2000/month payments to leave financial obligation. Total cost consisting of settlements and costs: $55,900. PacificDebt With $130,000 of financial obligation, it would take 46 months of $2000/month payments to leave debt. Total cost

2. consisting of settlements and fees: $90,995. ------------------------------------------------------------------------ Pretty intriguing things, ideal!?! After a couple of days, I saw something that didn't make good sense: * Before I would reduce any of my financial obligation, the debt settlement business would increase my debt on average of $12,000 because they earn money initially! * All of the business say the bank provides their best offers during the very first six months - but according to their recommended schedule, I would have no money left in my escrow account at 6 months because all of that $12,000 would go towards paying the financial obligation settlement business their charges. Which by the way, is for a service they haven't even carried out. Let me duplicate this since it is important. The very best offers come at the 6-month mark. Despite the fact that I would have collected $12,000 in my escrow account, I wouldn't have actually any cash left in there to pay the settlement deal because that money already went to pay the debt settlement company!!!! Talk about the contradictions !? In a lot of cases, clients get prevented at that point. They drop out of the program and state bankruptcy. These debt settlement companies flourish on our falling out of the program. They are predatory business much in the same way the credit cards are predatory lenders. Remember what I said about informing myself? I would not be a victim a 2nd time around. So let's review ... this is why most financial obligation settlement business are rascals: * I pay the financial obligation settlement business $12,000. * In 6 months, the bank makes a deal. * Because I have no cash in my escrow account, I ask the bank to spread the payments out over the next 6 months so I can have time to accumulate some funds. * The bank declines due to the fact that the majority of their settlement offers have a 90-day payment time-frame. * Threatened by liens and judgments, I leave of the program and declare personal bankruptcy. * The bank crosses out my debt. * The debt settlement makes pure revenue. I proposed this contradiction to the associates, however their reaction was foggy at finest. Because I was utilizing the information they gave me to describe this contradiction, they didn't have a response that made sense. Instead,

3. they deflected my concern by saying they can get a better offer than I can get myself. WHICH IS TOTALLY FALSE BY THE WAY! It became clear that the rep was simply a salesperson and had no REAL concept about this procedure. As century services llc soon as enrolled, I would never ever talk to him once again. As I said before, let's take ownership and take control. I fell into the financial obligation trap, but I was not going to fall under the debt settlement business' trap. Please don't be so desperate and incur more debt when you are attempting to get out of debt. If you make the effort to run the numbers, you will see most programs don't make good sense. A reliable financial obligation settlement business will charge a nominal start-up cost, base their commission on efficiency AND take their commission AFTER you have paid the bank. Noise too great to be true? Stay tuned! In the next post, I will go over how some debt settlement business are true customer supporters.