I have spent more than 12 years researching consumer debt relief programs like Debt Settlement and Credit Counseling, and after reviewing literally hundreds of programs I can honestly say that I have come across less than 20 that really work. Meaning, they really have the consumer’s best interests in mind. Right now I want to focus on Debt Settlement Fees. The vast majority of Debt Settlement Companies operate with a fee structure that charges the consumer a “monthly service fee”, usually around $59 per month, and a separate fee equal to some stated percentage of the debt, usually 15%. While I don’t have any problems with legitimate Debt Settlement Companies charging fees, the problem with most Debt Relief Companies is that they charge their fees at the beginning of the program. Usually over the first 12 months of what is typically a 36 – 48 month program. The effect is that so much of the consumer’s monthly payments goes towards fees, and not towards the consumer’s debts, and the consumer never makes any real progress with paying off their debts. I am aware of a small handful of Debt Settlement Companies that charge their fees on the back-end, as a percentage of the savings they have been able to obtain for the client. Meaning, the majority of the fee is only charged after they have saved the client money, which is a great incentive for the company to work hard to save the client as much money as possible as quickly as possible. That is the way Debt Settlement fees should work. If you want to know more, contact me at info@relieveyourdebt.com, or visit my website at www.NewDebtRules.com/memberhome and I can put you in touch with legitimate Debt Settlement Companies that only charge fees based on the savings they obtain for you.
This post was submitted by Doug Johnson.
If you would like to make a comment, please fill out the form below.
