Posts Tagged ‘no scam’


Is a Debt Settlement Program just a Scam?
Tuesday, August 24th, 2010

For starters it is important for people to understand what debt settlement is and how it works. The main goals a consumer is trying to reach with a debt settlement program are twofold, one is to save money on how much debt they currently owe and the second is to become debt free as fast as possible. Now one thing must be understood, debt settlement is not for everyone, and what I mean by that is the process is not the easiest to go through and people must understand that prior to enrolling into a debt settlement program. In order to get a settlement on any of your credit card accounts you must first realize that falling behind on the payments for these accounts is necessary. There are no creditors anywhere that are willing to negotiate a debt settlement when someone is current with their payments. I mean if you think about it why would they? If they feel you can maintain your monthly minimums that is right where they would like you to stay. It’s called the “credit treadmill”, a vicious cycle of minimum payments that will last over thirty years and cost the consumer tens of thousands in interest. This is precisely how the creditors make so much money and this is right where they would like you to stay.

So you must understand that during the debt settlement process you will have to fall behind on your debts for the creditors to settle with you. Once you stop paying them they completely change their tune and are much more receptive to reducing your debt drastically. Like I said earlier this process will not be for everyone some people cannot come to grip with the fact they must fall behind on the payments and that is unfortunate. For these people they will stay slaves to their creditors for what may end up being decades and lose a whole lot of money throughout the process. Now during that time when a debtor is falling behind on payments the goal will be to save up as much money as possible. This will then enable the debtor to be in position to have a negotiation made thus making a one time payment to the creditor closing out that particular account. This process is repeated over and over again until all the accounts have been settled and the person is then debt free. With a good and reputable debt settlement company the client can expect to save around 50% or more of what they currently owe including paying the fee as well.

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