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Home > Ask The Get Out of Debt Experts > I Am a Client of Lifeguard Financial And Most of My Unemployment Check Goes to Pay Them. – Galen

I Am a Client of Lifeguard Financial And Most of My Unemployment Check Goes to Pay Them. – Galen

“Dear Damon,

I am a client of Lifeguard Financial, started in January 16, 2009. The period of which debts were to be is a 36 month program. Total debt involved $28,382.00. Activation fee $4,257.30, maintenance fee is $49.00 per month. Each month the amount of $483.00 is withdrawn from my checking account. Back in December 2010 I was able to contact Lifeguard Financial spoke to a representative explained to her that a judgement was set on my the plaintiff a legal firm handling the debt account. The Lifeguard Financial representative informed me that have I consider filing bankruptcy, I told her bankruptcy this is why I went with Lifeguard Financial to prevent this. Then she tells me that due to my account type legal advice is not availble but we can enable one to represent you in your state. Cost of this is $350.00.

I was contacted by an attorney in Michigan once. I told him of my situation gave him information, he said he would contact the legal attorney and such. Well that was january tried several times to contact the local attorney no luck, tried several times to contact Lifeguard Financial no luck.

Contacted Noteworld Reporter on problem they tried to contact Lifeguard Financial no luck. Since january I have been searching on the net heavily, then found out that Lifeguard Financial is now a different company in New Jersey.

From all my research till now i have tried damn hard. I have been unemployed for over a year most of my unemploymeny check went to pay the monthly amount. My credit rating is shot, but I made sure there was enough to keep the Noteworld Reporter account active, just right after Noteworld Reporter withdrew the amount once I saw it posted on line I called them and had money returned to my account. I figure I do have an account and written obligation to Lifegu ard Financial yes I made the payment each month.

According to my contract once it gets posted by Noteworld reporter then legally the payment has been made. Now I’m at a loss I can’t afford an attorney, I can’t afford to do squat, but I have every letter, documents, every aspect of paper work since I became a client of Lifeguard and I mean every single piece of paper, telephone calls dates, times, etc.

According to my contract that for me to get out of the program would cost me. Todate I have debtor’s which now I owe them a lot more due to interest charges etc..

Now with this judgement i have to figure out a way to get it handled, but just what I really don’t know.

Help!

I’m out of ideas what to do is there anything you could suggest or some place to seek help ?

Galen”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Hello Galen,

I am very sorry to hear about your unfortunate situation. Sadly, I hear many stories like yours every single day and it is very frustrating to see these scam programs ripping off consumers for millions of dollars. I wish that I could reach every consumer before they enroll into these rip off front loaded “debt relief” programs that do nothing but relieve you of what little money you have left. Sadly I know I can’t reach everyone, they just spend so much money advertising their scams that it is very difficult to get the truth out to consumers.

I wish I could tell you that I could just pick up the phone and demand they return your money, but it appears that these scammers switched their name to SafeTrust Financial and then recently filed bankruptcy. Unfortunately the chances of you getting any of your money back is slim to none. I would encourage you however to at least file a claim in the hopes that there will be some money available to pay back the thousands of consumers that have been scammed.

The reason for the bankruptcy is stated as:

The reason for filing bankruptcy is, “In October of 2010, the Federal Trade Commission (FTC) issued new rules that effectively rendered the Company’s current business model unworkable. Furthermore, the Company has been suffering from consistent customer attrition, which the Company has been unable to counter due to a lack of resources to effectively market the Company’s product to gain new customers.”

Basically when the new law banning these companies from scamming consumers with their upfront fees, their business model was unworkable. This is because it was essentially a ponzi scheme. They were supporting older clients with the big upfront fees that they were charging newer clients. Once they couldn’t do it anymore they folded.

Sadly, many consumers that fell for these scam front loaded debt settlement sales pitches are likely to find themselves in the same boat when the companies they hired finish looting the cash out of the corporation and then seeking bankruptcy protection.

You can find more information about the bankruptcy by reading this article by Steve Rhode.

Now, to address the even larger problem of what do you do now that you are 2 years behind on your debts and have no means to resolve them. The unfortunate answer is that you are likely going to have to file bankruptcy to wipe out the debt and start over with a clean slate.

Here is what I want you to do. Click here to find a local bankruptcy attorney and schedule an appointment to meet, you will be able to get a free consultation. They can review your situation and let you know how bankruptcy would effect you and give you a pretty good idea about what will happen and what is possible both during and after your bankruptcy.

If after talking to the attorney, you find that bankruptcy is not a workable solution for you than please contact me through my website and I will look over your entire financial situation and see if there is some other possible option for you at this point.

Normally I charge a fee for my consultations because I provide honest and unbiased advice about exactly what you need to do, regardless of what it is. I am only paid by my client and am not financially incentivized to push you in one direction or another.

However, given your situation, I would be willing to waive the fee to help you out and then depending on your situation, we could work something out after the fact that would be fair, if there is something you can afford to do once we figure out the best solution.

Please first meet with the bankruptcy attorney and take good notes. Then if need be, you can contact me through my website and use the “Ask a Question” tab at the top to email me directly.

I am sorry my news was not better about Lifeguard and Safe Trust.

I Am a Client of Lifeguard Financial And Most of My Unemployment Check Goes to Pay Them.   GalenI Am a Client of Lifeguard Financial And Most of My Unemployment Check Goes to Pay Them.   GalenDamon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com

If you have a debt related question you’d like to ask, just use the online form.

I Am a Client of Lifeguard Financial And Most of My Unemployment Check Goes to Pay Them. - Galen by

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About Damon Day

Damon Day
Damon Day is a talented Debt Coach who offers fee based consultations to consumers as an alternative to the typical free debt relief consultations which are nothing more than thinly veiled sales pitches lacking any real information to help a consumer make a good decision. You can learn more about how he can protect you from getting ripped off at DamonDay.com
  • Jennab57

    I got into credit card debt, about $22,000 worth, and decided to call a debt settlement agency, DRM Associates to be exact. DO NOT call them! They contact the debt consolidators for you and take a minimum payment of what they determine to be your monthly payment to the actual debt consolidators, who you can call yourself and set up a repayment plan. Anyway, they set me up with Safeguard Credit Counseling and, true I had to pay them a fee every month (plus DRM Associates an additional fee!) but it was worth it. I got 5 of the 9 cards I started out with paid off before the economy tanked and I had to quit the program. They do help if you have a consistent income. Mine turned into an inconsistent income! And now I’m filing bankruptcy for the remainder of the debt, which is about $3200 for the credit card debt.

  • Jennab57

    I got into credit card debt, about $22,000 worth, and decided to call a debt settlement agency, DRM Associates to be exact. DO NOT call them! They contact the debt consolidators for you and take a minimum payment of what they determine to be your monthly payment to the actual debt consolidators, who you can call yourself and set up a repayment plan. Anyway, they set me up with Safeguard Credit Counseling and, true I had to pay them a fee every month (plus DRM Associates an additional fee!) but it was worth it. I got 5 of the 9 cards I started out with paid off before the economy tanked and I had to quit the program. They do help if you have a consistent income. Mine turned into an inconsistent income! And now I’m filing bankruptcy for the remainder of the debt, which is about $3200 for the credit card debt.

  • Gbabb143

    Filing bankruptcy is not a very good opion least for me.  The debts I have aquired are my responsiblity, thou Lifeguard Financial failed me I am still obligated.  My advice for anyone who get over their head is to do the following:
    1. stop using credit cards, not just one or two but all.  Note do not destroy the cards.  There are reasons for this but put them all in an envelope seal it then give the envelope to a reliable relative.
    This will get the temptation out of easy access.

    2. sit down figure out the total debt you owe, make a list of each one.

    3. use your list contact the business you owe money, ask them if they have programs that can allow you easier payments.  This puts you in good favor with the company and it will help you gain favor with credit reports.  Keep in mind once you have made an agreement with a company you owe money that you keep the agreement.

    4. check local sources there are legal and such sources that can help you get you financial picture back on track.  I would suggest banks as a last resort unless you have a long term relationship with a bank or credit union.

    5. never let a debt get you upset, or what ever when this occurs you loose prospective on the problem.

    6. take all your credit cards and put them into an envelope, seal it and give it to a very good close relative.  This takes the temptation to use them.  If you have any card for gasoline company at least keep one.  Keep in mind you need transportation to get to work to do just about everything if you really need to use them just be careful on usage.  Important things like getting to work, emergency use. 

    7. no debt settlement company is there to help you.  They exist to make money.  Item to note is sure they could help settle your debts for half or what ever but keep in mind that company that the debt is owed can submit a form to the IRS which means you have to pay tax on the amount left after the settlement company supposively settles the debt.  Check with the IRS you’ll find out that you really don’t save any money.

    8. again I will stress check out local business’s that can help you.

  • Gbabb143

    Filing bankruptcy is not a very good opion least for me.  The debts I have aquired are my responsiblity, thou Lifeguard Financial failed me I am still obligated.  My advice for anyone who get over their head is to do the following:
    1. stop using credit cards, not just one or two but all.  Note do not destroy the cards.  There are reasons for this but put them all in an envelope seal it then give the envelope to a reliable relative.
    This will get the temptation out of easy access.

    2. sit down figure out the total debt you owe, make a list of each one.

    3. use your list contact the business you owe money, ask them if they have programs that can allow you easier payments.  This puts you in good favor with the company and it will help you gain favor with credit reports.  Keep in mind once you have made an agreement with a company you owe money that you keep the agreement.

    4. check local sources there are legal and such sources that can help you get you financial picture back on track.  I would suggest banks as a last resort unless you have a long term relationship with a bank or credit union.

    5. never let a debt get you upset, or what ever when this occurs you loose prospective on the problem.

    6. take all your credit cards and put them into an envelope, seal it and give it to a very good close relative.  This takes the temptation to use them.  If you have any card for gasoline company at least keep one.  Keep in mind you need transportation to get to work to do just about everything if you really need to use them just be careful on usage.  Important things like getting to work, emergency use. 

    7. no debt settlement company is there to help you.  They exist to make money.  Item to note is sure they could help settle your debts for half or what ever but keep in mind that company that the debt is owed can submit a form to the IRS which means you have to pay tax on the amount left after the settlement company supposively settles the debt.  Check with the IRS you’ll find out that you really don’t save any money.

    8. again I will stress check out local business’s that can help you. 

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