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by Anonymous on November 13th, 2006

Anonymous

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Do debt relief programs really work or r they just a scam? if u choose to opt with a debt relief ag., does it effect your credit report?

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Answers. 4 helpful answers below.

  • by Darryl61 on November 13th, 2006

    Darryl61

    They do work. I am niether "stupit" or lazy. I got injured last year, and though workman's comp helps, it only paid about 2/3 of my wage. It didn't take long to fall behind. I entered into a credit counseling program to help keep up on my bills. Be assured, I am still paying every dime I owe to anybody, but these programs put a freeze on credit accounts, and through the cooperation of the lenders, reduce interest rates on the accounts, until the debt is paid in full. This is not a "bankruptcy" type scenario. All of my credit accounts show up as "current" on my credit report, because I am paying them on time, every month. The payment is lower because I am enrolled in the program. These programs aren't a bad thing, and nothing to be ashamed of. I have worked my ass off for over 30 years. It only takes one accident to change everything.

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  • by Eric on November 19th, 2007

    Eric

    The new bankruptcy act has spawned numerous debt relief companies. They are virtually all scams and frauds. The exception would be your local consumer credit counseling agency. These companies front load their fee. For example if their fee is $2000 and your monthly payment as they calculate it is $500 then the first four payments pay there fees. After you have paid for four months more or less and you are served with a summons you will realize these companies have no power whatsoever. Credit Card companies are not in the practice of lowering interest to these companies. I am a bankruptcy attorney in practice for thirty years. I have filed over 30,000 cases. I hear the horror stories from ripped off people day in and out. If you want help go to your local consumer credit companies. It is only a matter of time before laws will be passed to put these other frauds out of business. In the meantime don't be one of there suckers. If you want to join the scam start your own debt reduction company. Think of a fancy name to fool the guilable. Non profit means nothing. Just raise your "salary" to eat up corporate profit. Then solicit suckers with a long contract that guarantees nothing, (buried in the middle) and pays you at first before your victim realizes he has been taken. I hope these thieves burn in hell. They rip off the most vulnerable among us. It is a scheme ripe for fraud. NO Exceptions You have been warned.

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  • by barbaraanne4 on November 14th, 2006

    barbaraanne4

    I worked at an affiliate of Equifax for 10 1/2 years so I can answer with some authority. If you're wanting to "settle" on your bills, that's admirable; however, be prepared for what it will do to your credit report. When you open your accounts you agree to pay at least the minimum due by a certain date. Many debt relief programs negotiate a reduced payment amount so your overall payment to them will be less than the combined regular payments to your creditors. Regardless of what these companies agree to accept as monthly payment, you're still not paying the previously contracted amount. The "carry-over" amount of that payment will show as a late payment. Also, your payment sent to the agency will more than likely arrive at your creditors beyond your due date. Late payments individually stay on your credit report for 7 years. If you get on a five-year repayment plan your accounts will report late payments for years to come which in turn lowers your credit score. The 3 major credit reporting agencies do notate your accounts as included in debt reduction program, but depending on what kind of credit you may in future apply for, this will definitely affect your ability to finance.

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  • by Anonymous on November 14th, 2006

    Anonymous

    deaddrunk... i am not lazy or "stupit." i am a stay at home mom and my hubby is the only one working. i don't want anyone else raising our kids and daycare costs are out of this world when you have twins and a schoolaged child. in this day and age it is HARD. we do have credit card debt but i'm weighing my options to get them paid off fast. (even though they have 0% int. for 2 yrs.) we try not to rely on the cards but in emergencies it has to be done. try living in my shoes once and see how easy it is!!!!!!!!!!!

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