“Thus as a consumer, you have to beware! Avoid “debt settlement” firms who promise to completely get rid of your debt within months and who ask for a $3000 upfront fee. These usually turn out to be scams who upon receiving the money will run off from the country, disconnect their phones or set up a new firm under a new name.”
did you have to pay any upfront fees? did they really help in lowering your interest payments?
Legitimate debt consolidtaion services do not charge an “upfront” fee. You are charged a fee each month when the paymentrs are distributed.
Remember, these services DO NOT necessarily help your credit scores. All they are doing is negotiate with your account service providers to pay a lesser amount (interest free) than what you owe. You will not be able to continue using them (the accounts). These accounts will then be CLOSED.
I use a guy that charges $600 upfront. He is doing it more to get business to his mortgage company so the fee isn’t much. But he is legitate. He will help get issues cleared and get people on a payment plan. Once they can purchase a house they get a mortgage and he will take $600 off of the closing costs if you use him. It is a good deal for lease purchase home owners looking to get a client qualified.
Also credit counseling is just as bad as a BK. From the lenders point of view…you can’t pay your bills…whereas with a BK you have just freed up some cash!
With most lenders you will have to be complete with you credit counseling before your loan can close…and that is a condition with a sub-prime lender…A-Paper…forget about it!