From today’s New York Times, an article by David Strietfeld, “Debt Settlers Offer Promises but Little Help.”
Don’t waste your time and your family’s money dealing with these outfits.
2,000 of these outfits are operating in our country today. Check with the Better Business Bureau if you’re contacted by some helpful voice–then look up the company name nationally and read what others write about their experiences.
These companies won’t help you, and you may owe more by the time they’re “done” collecting fees from you. Figure they’ll charge you a fee amounting to 15% of the total debt you owe, and NO ASSURANCE that your creditors will accept settlement, or that you won’t be pursued by zombie debt collectors for years to come. Furthermore, while you’re messing around paying these bozos money–and not paying your creditors–you’ll be running a huge risk that you’ll be sued and garnished. Yikes!
Fees to file bankruptcy are not based on a % of what you owe, and the law will protect from creditors now and later who try to screw with your wallet.
If it’s loan modification you’re after, you can attempt it yourself. If you need something more aggressive, then use your money to hire an attorney who can get you out of the mess.
Telemarketers are not going to solve your problems, I promise.
Find an attorney who you trust, and then trust him or her to help you fix this for once and all.
Pardon the strong wording; I hate scam artists.