because we suspicion a credit label association might not accept a suggest of 40% or 50% of a debt.. as well as sue in justice as well as win a garnishment.
The debt allotment lady upon a phone pronounced "don’t worry, reduction than 1% of people who pointer up with us get sued", thus we feel everybody can shelve up outrageous credit label debt as well as pointer up for it to usually owe half or less.
Debt settlement firms have you deliberately default on your credit cards to settle for less. When you use such a firm, the monthly payment you make is going towards their settlement fees and to build a settlement account. Their fees are taken out first. Your credit cards will not be paid and will go into complete default during this process, which ruins your credit rating. This is deliberate so that they can attempt settlements for 50%.
People signing up with debt settlement firms often have the mistaken impression that their creditors will gladly work with such companies..or that they are obligated to accept settlements. You can never predict how your creditors will respond..they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. If the process fails you can end up in a much worse financial situation.
- The person on the phone is a salesperson trying to reach a quota/commission…they’ll say anything to close the sale…I’d guess the chances of being sued by at least one creditor is 30-50%.
Here’s an example of what can happen when you use a debt settlement firm:
http://www.ripoffreport.com/credit-debt-services/square-one-debt-sett/square-one-debt-settlement-th-97842.htm
I could also tell you that the tooth fairy is real. Does that mean it is so? LOL You have to realize that the guy on the other end of the phone is a SALESMAN. If he cannot convince you to sign up for his debt settlement program he will be out of a job… They charge FEES to do business with them and he is wrong telling you that less than 1% get sued if they work with them. WRONG! Your creditors are in no way, shape or form obligated to work with these firms and most actually WON’T!
If you have credit card debt you cannot handle and have not defaulted, you might want to check out this non profit organization: http://www.nfcc.org.
Sign up with one of these guys and you can be sure to come out the other end poorer, your credit in worse shape and more than likely facing a lawsuit. I can guarantee you that in the contract they have you sign they probably state that they are NOT legal representation and will NOT be accompanying you to any court dates! LOL