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Is Nationwide Debt Direct a Reputable Company or a Scam Operation? – Rick

“Dear Steve,

I had some smaller debt that was not a problem but some medical bills for knee surgery needed to be paid and that amount has pushed me to the limit in many ways. I am know looking at a way to make the debt more manageable. I can pay the monthly payments plus other expenses but I am no longer saving and that is an issue. I have been speaking with Nationwide Debt Direct.

Is Nationwide Debt Direct a reputable company or is it a scam operation? I am also concerned about enrolling in the program since they only pay off the loan once I have deposited the amount to settle the loan is int he trust account. So that means a large debt which is with one creditor could take one year to save to amount needed to pay it off. Won’t that account go into collections before it can be settled and how long before I get sued for the amount? Also can they sue for the full debt amount even if settlement is proposed?

FYI I owe a total of $30,000 on the CC’s one holding $18,000, one $8k and one $4k … $22000 is medical expense.

In short is Nationwide Direct Debt a company I can put my trust in and is Debt settlement an option worth exploring?

Kind regards

Rick”

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The Answer

Dear Rick,

I have no idea if the company is a scam. What I can do is give you some sound advice about what to do when looking for the right kind of help.

I would recommend that anyone considering using such a company should read the following two guides.

  1. The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
  2. 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You

You will want to pay close attention to the review the company offers before they try to sell you into their program.

I do have to say that the “Your Options” page on their site does concern me a bit. – Source

Their own words and advice on that page appears to make some unsupported claims in order to promote debt settlement as a superior solution. “Nationwide Debt Direct provides one of the strongest proven debt-elimination processes to help you become debt free in as little as 12-36 months!”

They also slam CCCS or credit counseling even before determining if it might be right for you in your situation.

They then discount a debt consolidation loan and label bankruptcy as a method of last resort. All of this appears to direct consumers back to debt settlement as a superior option.

If you are looking for a fair and balanced approach which puts your situation and needs first, I’d be hard pressed to find anything like that through their options advice.

Now debt settlement might be a good solution for you, but that decision can only be made after carefully reviewing all available options and matching possible solutions with what you want to accomplish.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

Then use the free How to Get Out of Debt Calculator to review your options.

What you might find is that since you can pay your monthly bills now but need some more breathing room, an unsecured debt consolidation loan may be advantageous. If your credit is good and the consolidated interest rate is lower than what you are paying then it might just lower your payment, give you the breathing room you need, and work to improve your credit moving forward.

Your concerns and observations over the consequences are legitimate and should be a concern. When you default on your payment to the creditor, the creditor can then avail themselves to all the rights in your contract with the creditor. This will certainly include negative marks on your credit report, collections calls, and possibly suing you. If a creditor does sue you they will sue for the full amount due, plus late fees, penalties, and attorney costs.

The debt settlement approach will also include a negative notation on your credit report for seven years which will show the delinquency. The fact you may settle for less than you owe will show as a negative mark as well.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

Is Nationwide Debt Direct a Reputable Company or a Scam Operation?   Rick
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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Jeremy Sloan

    Anyone doing business with Nationwide Debt Direct needs to cancel immediately In order to retain a full refund you must threaten to complain to the BBB (Actually, go ahead and file a complaint with the BBB). Next, threaten to complain to the Attorney General of the state you live in and Texas. After that just point them out on the fact that if you have 1 debt, 20k and you pay $250 x 48 months (You will have gained interest and late penalties by the time you settle after 4 years, you’re looking at about 5k extra now in debt). Lets take a look, they promised to get you out of debt at 40% of the balance with an 18% fee = 58% in the beginning yet by the time you settle at 40% its more like 60% of the original debt – So, now you have paid 70% of your debt and have 4 years of delinquency on your credit report. These companies are a scam. IF you want to settle, just let the debt go delinquent for 3+ months, call the creditor…say you have x amount.. can we call it even? Ensure they send it in writing, then set up the payment. DONE.

  • http://twitter.com/DumbStupidDebt Emily Debt Crusher

    You have great information here from Steve. Also, talk with your medical provider(s) directly. They are often much more willing to settle than even credit cards. This is especially true if they have a philanthropic charter. See if the hospital/doctor has a hardship or charity petition that you can complete that outlines your situation. I’ve seen entire bills be forgiven.

  • http://DamonDay.com/ Damon Day

    Hello Rick,

    Do you have a copy of the contract? Most debt settlement programs push one size fits all solutions that are not good options for most of the unfortunate people who enroll into the program.

    I do offer a free debt settlement contract review service for consumers. You can contact me through my site at DamonDay.com and I will take a look and see if I find the typical red flags to run away from.

    Based on your question, I would say the sales person did not do a good job of explaining exactly what debt settlement is, how it works, and how you will be affected. Huge red flag. They are more interested in selling you a program rather than helping you figure out the best option.

    Of course they only get paid to sell you the program, so we really shouldn’t expect them to do anything else.

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