The best magazine
However not all debt relief companies are not really honest and there is definitely things which they have not being informing their clients about.
Did you ever being asked to pay for the first time administrative fee and monthly service fee? Well, I believe the answer is a definite "yes", but I bet that you didn't aware that these monthly payments have not being credited to your creditor's account, but have been credited into a separate trust account which is not registered under your name for many months.
While having these trust account to be built up every month, your assigned debt settlement company continue to negotiate with your credit card debt owner, hoping to get an at least 50% reduction in your total debt account.
Within this period of time, the debt settlement company did not return any single cent to your creditor at all.
Thus, late payment charges and finance interest continue to come to you as your creditor did not receive any payment from you, make sense, right? From the thought and look of it, this is rather horrifying to know that while worrying about how to pay back the debts that you had owned, here are the accumulated late charges cost which you need to cover for.
For this program to work, it needs a little more time.
The debt management company needs to make the credit card creditors "believe ""that they will never ever get back their loan back, not even a dime, only after that the debt relief company will approach them and suggest for the 50% reduction of the total debt.
If the creditor agrees to this reduction, then one lump-sum will be paid out directly to the creditor once and for all.
The dark side, which not many people are aware of is the fact that despite the debtor had difficulty settling the payment to their creditor, they need to give the money to the debt settlement company instead ( which they have been hired to provide professional debt relief service and advice to the debtors) Many debt settlement and relief companies claim themselves to be non-profit organizations but yet they always demand for a fixed administrative setup fee.
This is really contradictory to how a non-profit organization operates.
However, all of us should be aware that there are a lot of scams in this industry, especially every business is so highly competitive.
What your debt settlement company did not tell you might cause unnecessary havoc and they might be disgusting news to you if you only found them out later in the whole process.
Nevertheless it is very important to get yourself equipped with the necessary knowledge on debt assessment service provider before you really tell that you finally found the right debt relief company for good!
Source: ...