Our friends over at the Consumer Recovery Network (CRN) made the Wall Street Journal site today in a good way.
In an article titled Limiting Psychological Damage From Debt Collections a consumer talks about how working with CRN helped to easy their stress.
Helped by the Consumer Recovery Network, which teaches people to self-manage the wrenching debt settlement process, Bonadio got through the tough “collections” phase in the first three months after he first stopped making payments. Then, in the fourth and fifth months, he received letters offering settlement of around 50 cents on the dollar, which he negotiated down to an average 31 cents.
But countless others are worn down by the phone calls and the debt collectors’ warnings — about bankruptcy, about the blow to their credit score. They pay the minimum due in the futile hope that a job or some other funding source will arise. Meanwhile, subject to a higher default rate, the unpaid balance keeps ballooning.
With each payment, the bank avoids charging off the account as a loss, which would be required if it became more than 180 days past-due. (That deadline explains why Bonadio got his unsolicited settlement offers in months four and five.) Yet in so many cases the accounts end up in settlement anyway–or worse, in recovery.
In others, debtors fall for the traps set by one of the 2,000 or more heavily advertised debt-relief companies that have sprung up since the financial crisis. – Source
See, I do say good things about debt settlement companies from time-to-time.
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