There’s a lot of information floating around especially on the Internet about credit card debt settlement. Is it all true?
Unfortunately, the answer to this question is “no,” you can’t believe everything you read on the Internet about debt settlement or any other popular debt relief plan. This is an area where there’s a lot of fraud being perpetrated on unsuspecting people who are in seriously in trouble with debt. Or there is a strong financial incentive to bend the truth a little and guide consumers towards their own plan instead of a competitor.
What to watch out for
The first thing to watch out for is what’s called debt repair. This is where companies promise that they can repair your bad credit or clean up your credit. I found one site that promised credit repair for $89.95 a month. But the unvarnished truth about credit repair is that these companies can’t do anything that you couldn’t do yourself. This is because there is absolutely no way you can have bad information purged from your credit report if it’s true.
I almost laughed when I reviewed one site that posed the question, “What if all my negative items are accurate?” It’s answer was, “Well, there are more opportunities for change and growth than you might think.” Notice how they answered the question without really answering it? The fact is, no they’ can’t do anything about negative items if they’re accurate.
What you could do yourself for free
The only things that these credit repair companies can really do is review your credit report, looking for errors. If they find any, they have lawyers who can get these mistakes removed from the record. You can do this yourself by ordering your credit reports from the three credit reporting bureaus (TransUnion, Experian and Equifax) and reviewing them for mistakes or errors. If you find any, you can write a letter to the appropriate agency and asked them to remove the information. Of course, you will need to have some proof that the information is erroneous.
The secret to keeping on top of your credit reports
You can get your credit reports from all three credit bureaus free at www.annualcreditreport.com. However, you should not get all three at once. It’s better to order your free report from one credit bureau at a time, four months apart. This allows you to monitor your credit reports year round without spending a dime. The three credit bureaus also have websites where you can order your credit reports as frequently as you wish but you will have to pay for them. They also have identity protection services you can subscribe to that will include your credit reports.
The truth about debt settlement
There are also Internet–based companies that promise to settle your debts, usually for a small fraction of what you actually owe. Unfortunately, some of these companies are total scam artists. They will have you send them a payment each month with the promise that they will pay your creditors but then they don’t. It may take you several months before you discover that they have not been paying the credit card companies. Some of these companies are not even located in the US, so there’s very little you can do to get your money back.
It is important to do your homework before you signup with any company, even the companies we recommend. See how they are rated with the Better Business Bureau, American Fair Credit Council, and non-biased review sites.
We do debt settlement the right way
You can check out Debt Consolidation USA reviews and you’ll find we run a clean, ethical business. Even more important, our recommended companies don’t charge a cent until they settle all your debts. You make one monthly payment, which is deposited in a trust account that you manage – so your money is always safe. Fill out our free no obligation form and get your free credit card counseling session. Ask all the questions you want to be sure you understand and know what you are getting into. Debt settlement can help you with your credit cards but it’s not a solution for each and every consumer. All we ask is that you at least give us an opportunity to tell you how much you can save on your debts.