Quit Giving Those People Money

Carlo signed up with a debt management company a year ago, and it isn’t working. He paid them $5,000 upfront, and three of the four creditors have file suits against him. Dave tells him he needs to quit giving these people money.

QUESTION: Carlo in Lincoln signed up with a debt management company a year ago, and it isn’t working. He paid them $5,000 up-front, and three of the four creditors have filed suits against him. Dave tells him he needs to quit giving these people money.

ANSWER: Let me just tell you that the Federal Trade Commission is getting ready to pounce on people of this ilk because there’s a huge number of consumer complaints.

Don’t give them any more money. These companies are so bad. Maybe they can handle one account, and you take the other ones and handle them. You just negotiate with them, and that’s all these idiots are supposed to be doing. They ran you behind so that you could go and negotiate with them. That’s what they were doing.

Scrape together $5,000 or $6,000 separate from this deal and offer it to Discover as a settlement in full. You’ll have to negotiate, you’ll have to put up with a bunch of crap, and they’ll yell and scream. But if they’re down to the point of suing you, you’re probably over a year behind. It’s likely they’ll take 50 cents on the dollar at this stage of the game. Get that in writing from Discover. Don’t give them any money unless it’s in writing. Then, and only then, do you send them money. You do not allow them electronic access to your checking account.

You can do this pretty quickly if you quit messing with these people who have ripped you off. Quit giving them money, pile up cash, and settle these accounts one at a time.