Comments on: Donna Writes and Asks “What Is The Best Way To Become Debt Free The Fastest?” http://getoutofdebt.org/1065/donna-writes-and-asks-what-is-the-best-way-to-become-debt-free-the-fastest Free debt help and debt advice on how to get out of debt, getting out of debt consolidation scams, and inside information on the debt relief and debt help industry. Fri, 25 May 2012 02:12:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Steve Rhode http://getoutofdebt.org/1065/donna-writes-and-asks-what-is-the-best-way-to-become-debt-free-the-fastest#comment-21661 Steve Rhode Fri, 07 May 2010 16:40:59 +0000 http://getoutofdebt.org/?p=1065#comment-21661 The instructions to stop paying cards which damages your credit is one of the issues the new <a href="http://getoutofdebt.org/18921/the-debt-settlement-consumer-protection-act-of-2010" rel="nofollow">Debt Settlement Consumer Protection Act</a> hopes to eliminate. <blockquote>The premise of debt settlement is simple: the consumer is advised to stop paying their creditors and instead make monthly payments into an escrow account to accumulate money. The debt settlement company promises to use the account to strike a bargain with creditors. The company claims it will negotiate with the consumer’s creditors and convince them to accept partial payment in full satisfaction of the amount owed by the consumer. In reality, the vast majority of debts do not settle. In fact, many credit card companies refuse to work with debt settlement firms. Not only are consumers out the hefty fees charged by debt settlement companies, including up-front fees (often a percentage of the total debt), fees to set up escrow accounts, and monthly maintenance fees. They also often are sued by their creditors for the balance due – which, perversely, has grown larger as a result of the debt settlement companies’ advice to consumers to stop paying their debts. - <a href="http://getoutofdebt.org/18921/the-debt-settlement-consumer-protection-act-of-2010" rel="nofollow">Source</a></blockquote> It seems like your logic and reasoning is pretty sound. Steve The instructions to stop paying cards which damages your credit is one of the issues the new Debt Settlement Consumer Protection Act hopes to eliminate.

The premise of debt settlement is simple: the consumer is advised to stop paying their creditors and instead make monthly payments into an escrow account to accumulate money. The debt settlement company promises to use the account to strike a bargain with creditors. The company claims it will negotiate with the consumer’s creditors and convince them to accept partial payment in full satisfaction of the amount owed by the consumer.

In reality, the vast majority of debts do not settle. In fact, many credit card companies refuse to work with debt settlement firms. Not only are consumers out the hefty fees charged by debt settlement companies, including up-front fees (often a percentage of the total debt), fees to set up escrow accounts, and monthly maintenance fees. They also often are sued by their creditors for the balance due – which, perversely, has grown larger as a result of the debt settlement companies’ advice to consumers to stop paying their debts. – Source

It seems like your logic and reasoning is pretty sound.

Steve

]]> By: Mike http://getoutofdebt.org/1065/donna-writes-and-asks-what-is-the-best-way-to-become-debt-free-the-fastest#comment-21653 Mike Fri, 07 May 2010 15:47:32 +0000 http://getoutofdebt.org/?p=1065#comment-21653 IM looking at a dept settlement company. My card companies have reduced all of my limits, tried to increase my APRs(or close the cards), and this has lowered my credit score 100 points. I did not have late payments or delinquincies to cause this. They said, "after reviewing your accounts and other dept, we have decided as a business move to....." do all this. I was told by the dept settelment company to stop paying the cards, the after about 3 months they would go into negotiations to pay a percentage of the total. Im now thinking why pay them $50 a month and 12% of the total dept i owe to do this for me. Can you give me some advice? IM looking at a dept settlement company. My card companies have reduced all of my limits, tried to increase my APRs(or close the cards), and this has lowered my credit score 100 points. I did not have late payments or delinquincies to cause this. They said, “after reviewing your accounts and other dept, we have decided as a business move to…..” do all this. I was told by the dept settelment company to stop paying the cards, the after about 3 months they would go into negotiations to pay a percentage of the total. Im now thinking why pay them $50 a month and 12% of the total dept i owe to do this for me. Can you give me some advice?

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