Debt Settlement A Grave Mistake?

Barbara was feeling desperate because of her $10,000 in debt and signed with a debt settlement company. Has she made a grave mistake?

QUESTION: Barbara in Alabama was feeling desperate because of her $10,000 in debt and signed with a debt settlement company. Has she made a grave mistake? Dave thinks so, and tells her exactly how she should get out of the deal.

ANSWER: The only way I know how to answer this question is what I would do if I were in your shoes. I have seen—in my experience—about 90% o these companies be complete con artists. About 10% o them are simply incompetent. Maybe 1% ae on the up and up. The Federal Trade Commission says the most complained category of all consumer categories is debt settlement. So I know what I would do. I would cut this deal off right now. I'd stop it. I wouldn't give them another dime. I would consider whatever money you've given them lost. They're not going to refund you. And I'd get away from them and do my own debt settlement. I would not wait on somebody else to take care of my life, and I certainly wouldn't allow myself to get ripped off. If you don't believe me, go to the Federal Trade Commission's website, ftc.gov, and look up debt settlement and see all the complaints and numbers of attorney generals that have filed cases against them around the nation. It's just a horrid industry.

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