DEBT MANAGEMENT & CREDIT COUNSELING COMPANIES – HELP THAT HURTS

We’ve all seen the ads on television and heard the radio commercials. Some Credit counseling company promising to help consumers settle debt for a fraction of the total amount owed. They all sound great “on paper”, but should be avoided at all costs for the following reasons:

1. Some are legitimate, most are frauds: Sad but true that the Credit Repair marketplace is saturated with fly-by-night con artists that prey on consumers that desperately want to improve their overall financial standing. If you do end up enlisting the services of a debt management or credit counseling service, the Federal Trade Commission and the Consumer Financial Protection Bureau are great resources, as they can help connect consumers with entities that are legitimate.

2. THE DEBT MANAGEMENT/CREDIT COUNSELING BUSINESS PREMISE: It goes a little something like this: Suzie Consumer calls up Credit Repair Company Q and requests help because she is overburdened with debt and desperately needs relief. Credit Repair Company Q tells Suzie Consumer that they will accept her as a client, and that it will cost her $1,500 up front as a “debt management fee” just to set up her file (this is just profit for the company). THEN, after paying $1,500, the company tells Suzie to immediately stop paying her creditors and to assign them the right to speak with creditors on her behalf (let’s say Suzie was paying $800/month to her creditors on total debt of $20,000). Suzie does this for 6+ months. During that time, the company accepts Suzie’s $800/month, and her creditors aren’t being paid. While the creditors are getting desperate for some type of money, they agree to settle her accounts and the total cost to settle is $2,000.

In the example above, the company made $1,500 up front PLUS $800/month x 6 months, so $1,500 (debt management fee) + $4,800 (total of Suzie’s payments to the company) – $2,000 (cost to settle all creditor accounts) = a $4,300 PROFIT for the debt management company!

The problem in the example is not the fact that the debt management company made a profit; after all, they have a right to be paid to do what they say they are going to do. The problem is that they care nothing about HOW they negotiate for a client’s future credit needs. Simply put, to have an account report as ‘settled for less than full balance’ does nothing more for a person’s credit score than having a charge-off or other negative notation. THIS DEFEATS THE PURPOSE OF CREDIT COUNSELING!

It’s YOUR credit report. There’s nothing a credit counseling service can do for you that you can’t do for yourself and by yourself – and BETTER than they ever could! Remember that!

Do yourself a favor and get your copy of Shane O’Brien’s “How to Repair Your Credit – BY YOURSELF!” TODAY! It is available for INSTANT DOWNLOAD!

In addition to sample letters you can use in your credit repair efforts, this e-book will teach you all of the following:

1. How to properly order your credit reports from the big three credit reporting agencies/bureaus Equifax, Experian, and TransUnion.

2. How to analyze the credit reports you receive in order to spot errors and discrepancies.

3. How to properly initiate a dispute of negative/erroneous items with the credit bureaus.

4. How to further challenge negative/inaccurate information contained within the dispute results received from the credit bureaus.

5. How to INCREASE YOUR CREDIT SCORE 100+ points in 30 to 60 days time.

6. Why you should NEVER use a credit repair company – You can do this yourself and your credit report will thank you in the long run!

7. How to MAKE MONEY from your credit repair efforts, AND SO MUCH MORE!!!

SIMPLY CLICK ON THE E-BOOK COVER BELOW IN ORDER TO GET YOUR INSTANT DOWNLOAD!

The post The Dangers Of Credit Counseling Companies and How You Can Do What They Promise On Your Own appeared first on Welcome to SGO Content Media!.