Why shop around for anything, there is not one thing they can do for you legally that a consumer can not do themselves. With no more than a little bit of research the average consumer can simply pick up the phone and settle their own debts. In many cases collection agencies will give better rates and discounts to consumer directly than they will any third party. I never understood why people want to give their money away to these debt agencies.

Curtis, thank you very much for taking the time to read and review our post. You obviously are not verse about our industry. However that is okay, most people are not. That is why we send out these posts, to help educate the populas. If consumers could do this own thier own AND get the settlements that we get, there would not be an entire industry that does this. Best of luck to you and thank you again.

Since I been running a collection agency for over 17 years now, I believe this qualifies for being verse.

Lets be honest here your not sending out these posts to educate anyone, your sending them to advertise your services and drum up new business.

Why would we give a debt relief company a better deal? Typically all these companies do is take consumers money and simply set them up on a monthly payments with no discount at all. I cant tell you how many times we get letters from these companies and call the consumer directly and work out a better deal for them.

Again their is nothing that a debt relief company can do that a consumer can not do themselves.

Curtis

It is better just to settle with the creditor yourself to save money and your credit scores.

I disagree, Although the consumer can settle their own debts, it is very tough and takes a lot of time and research and pretty much knowledge of the industry to do so..

or atleast in regards to the way my company does business, we have a significantly higher success rate negotiating with creditors than a single consumer would because we go to the creditors with 1000s of accounts and millions of dollars at a time when we go to settlement and they are more likely to take that rather than try to nickel and dime all of the accounts, who are having trouble making the minimum payments now as it is.

Think of it this way, if your paying on time.. and you go to try and settle with your creditors, they won't.. they have no incentive to settle, your just a cash cow who keeps paying their rediculous interest rates which is why CC companies keep consumers in this constant vicious circle of debt.

Don't get me wrong, I know their are valid arguments and points for both sides here, I'm just saying.. It does save the consumer a lot of time and money to go with the right settlement company as opposed to try and settle theirselves.


Not to mention the potential risk of having a Judgement brought against you by the creditor and then your locked into paying the full amount by court order. I'm not sure about all debt settlement companies, but the one I work for offers 60hrs of free Legal Representation to clients if they were to get sued by the creditors.


Of course like I said I can't speak for all Debt Settlement companies because there are a lot of frauds and scams out there. I know my company is one of the select few that is able to settle debt in all 50 states and this is because we stay compliant with all the attorney generals and even try our best to stay compliant with the future laws they want to enforce to protect U.S. Consumers.

I don't Like your examples, Our Industry is very rocky with a lot of fraudulent companies and scams out there. You cannot sit here and say that your models break down every companies fees or how they get paid. You are also simply trying to up-sell your programs fee, not provide an exact example from companies who use the other model, yet you were pretty detailed about the model that you use.

So although I am a Financial Consultant and do work in the Debt Settlement and Loan Modification Industry, I do not support this post although your figures are roughly in the area, you are simply implying things about companies you know nothing about so you obviously didn't look into any companies that use the other model in order to get your facts straight.

And with your One-Time Fee, in which you didn't bother giving an example of that, is probably equal to the difference between the two models. notice I said probably because I do not know so I'm not going sit here and state it as fact.

Also, Each state's Attorney General has different laws and regulations for the Debt Settlement industry so you can't explain to the entire United States Debt Settlement with 2 simple models like you used.