Tag Archives: DebtConsolidation

Debt Settlement Companies May Leave Clients Worse Off

The New York Times recently posted an article referencing a report from the Center for Responsible Lending, a nonprofit research group, that found consumers that worked with for-profit debt settlement companies had their debts grow by about 20% on average before a settlement was reached, with no guarantees that a settlement would be reached! We have discussed in the past the potential pitfalls and scams that some debt settlement companies engage in, promising to reduce debt and interest rates by negotiating with creditors on behalf of clients. The truth is, debt settlement companies have very little leverage over creditors. During negotiations, debts will continue to grow and accrue interest, 20% on average, and if negotiations fall through or they decide not to make any changes, its quite possible someone could find himself or herself out the money they spent on debt settlement services and higher debt bills than when they…
Read More »

Posted in Bankruptcy, Consumer Credit | Tagged , | Leave a comment

How is Bankruptcy Different from Debt Settlement?

You have probably seen the television commercials: Debt settlement or consolidation firms promising to solve your debt problems for pennies on the dollar. Unfortunately, for most consumers, the end result does not match the promises made. At The Sader Law Firm in Kansas City, Missouri, we assist individuals, couples and businesses solve their debt problems and look forward to a brighter financial future. Before you spend hundreds or thousands of dollars on a debt settlement or consolidation program, contact us for a free initial consultation to explain your bankruptcy options. How Does Debt Settlement or Consolidation Work? With typical debt settlement programs, you make payments to the debt settlement company instead of your creditor. After you have paid the company a required amount, it will negotiate with your creditors. Unfortunately, your creditors aren’t required to negotiate with the debt settlement company and many refuse to do so. Your creditors are…
Read More »

Posted in Bankruptcy | Tagged , , , , | Leave a comment

Debt Consolidation Scams Promise to Stop Creditors. Do They?

You’ve seen the television commercials, heard about it on the radio, maybe even clicked on internet banners or brochures. Debt consolidation solutions sound like an easy way out. Consolidate your debt into one easy to payment is great. Paying to use services to make this possible isn’t necessary, but many people fall prey to it. The result can be more debt with little to no results. Fooling with them isn’t worth the hassle because your creditors can still harass you. Debt consolidation companies claim to help you pay some or all debt. They promise to narrow down debt from many sources into one easy to manage payment. They vow to stop creditors from harassing you. In reality they do nothing but collect money from you. They keep you in debt, don’t take responsibility and won’t lift a finger to keep creditors away. It’s easy to lose track of debts because…
Read More »

Posted in Bankruptcy, Consumer Credit, Fraud | Tagged | Leave a comment