Get Out Of Debt Quick And Easy

2013-04-09   minute read

It’s the headline that grabs the attention of many people. But if something sounds too good to be true it probably is. You usually see this type of ad for a debt settlement company. The sales pitch is all problems can be solved in one phone call. But many people don’t realize what is happening in that call. By the time the call is done, you have given them your credit card numbers, bank account information and soon after, monthly payments will be taken out of your bank account. This is all in the hope the collection calls will stop and the debts are gone. Here’s what dangers could be lurking in the fine print:Your payments are going to pay the fees of the debt settlement company first.They won’t even contact your creditors until you have paid a certain amount to them (usually the full amount of the debt).You are told not to contact your creditors and to ignore any phone calls. Not surprisingly, the creditors think you are ignoring the problem since you are avoiding the phone calls and letters. Imagine your surprise when court documents show up in the mail. Now you are faced with wages being garnisheed. I have seen situations where clients have paid several thousand dollars before they found this out and came to us. Not all is bad though, there are legitimate companies out there. Any costs would be spelled out clearly and usually a reasonable amount. They will contact your creditors at the beginning not at the end. How is this different than what a Trustee can do? Well, first of all, a Trustee is going to make a review of your complete financial situation and set out your options. [By the way, we don’t charge a fee for that review]. A debt settlement company just wants to know who you want to pay but doesn’t look at whether you can afford it. If you have the ability to pay back a portion of your debt but not all of it, then a consumer proposal may be the right option. The last resort would be a bankruptcy. In some cases, you just need time and we can point you in the right direction to get the help you need. The quick and easy part is to make the phone call to take the first step to a long term debt solution.

Consultation icon