Consolidators Are Not Created Equal
In recent years many horror stories have
surfaced where so-called Debt Consolidators
agencies have swindled
consumers out of large amounts of money. This should not
be a reflection of
all credit counseling services for much good can be accomplished
right agency is paired with the right consumer.
But finding the right agency can be
as difficult as solving debt help problems on
There are literally thousands of debt
consolidation agencies out there offering what
seems to be the same
So how do you find the "jewels" among the "rotten
But don't kid yourself. Much of the
information contained on this site
(especially on this page) is not readily
available, simply because the rotten
apples will not publish this kind of
FREE DEBT CONSOLIDATORS
Consolidation Management program can help you:
- Reduce your monthly payment
- Reduce or eliminate interest
- Improve or rebuild credit
- One lower monthly payment
- No home ownership or credit
- No obligation
- Path to becoming DEBT FREE
Simply Click Here to fill out a short
form for free consultation.
Don't Make The Mistake
That Can Cost You Dearly
We took a survey from a thousand
consumers seeking debt help and presented them
with one simple question.
When shopping around for Debt Consolidators, what are you primarily
Almost 99% answered "I'm shopping
for the lowest monthly payment"
Big mistake! There is no lowest monthly
payment in debt consolidation. By seeking the
lowest quote from an agency,
consumers are often lured into signing up with one of the
so called "Rotten
Apples." Let me explain:
An established Debt Consolidation agency
obtains agreements with all
major creditors. For credit repair see us.
The monthly payment is determined by the percentage of debt that the particular
creditor is looking for every month to qualify the consumer for the
program. There are
also guideline set for consumer loans and all other
types of debt that qualify for a debt
These guidelines are set forth by the
creditors and apply to all reputable Debt
Consolidators management agencies
that have those agreements in place.
If a creditor changes their guidelines
(and they sometimes do), all Debt Consolidators
that have the agreements
So if a consumer receives monthly quotes
from several reputable agencies, the payment
should be about the same and
may only differ by $1 to about $20 per month, depending
on the agencies
fees. The payout to the creditors are always the same
unless the consumer
has extra funds that they want to disburse and get out of debt
So Why Do Certain Debt Help
Agencies Offer A Significantly Lower
Let's say a consumer receives a quote
from 4 different agencies, 3 of which quote the
consumer about a $350
monthly payment based on their debts and the other quotes a
for the same debts.
How can this be possible? After all, we are talking
about the same creditors with the
same amount of debt owed.
This is not possible, and a consumer
red flag should be flying high!
"Our negotiation skills are better
than the rest" claims the low quote agency.
What negotiations can
possibly take place if the creditor guidelines are the same for
In reality, there are no negotiations
that take place, other than the agency negotiating
the acceptance of the
consumer into the consolidation program, which is achieved with
standard letter of proposal.
So why do some agencies offer a much
lower quote? Several reasons:
Low Balling The Creditors
This tactic is used to lure the consumer into signing up and paying set up
In turn, the agency will pay the creditors less then they
require. Now, if the
creditors do not receive their minimum
requirement, they will charge penalties
to the account and the
consumers debt is now increasing rather then decreasing.
After a few
months the creditors will start sending payment increase letters and
demanding to be paid according to their guidelines.
The agency will
then tell the consumer that the creditors want more money or
discontinue the program. Now the consumer is stuck with a larger
payment that they usually can't afford and end up quitting the
The agency keeps their set up fees and the consumer ends up in
situation than before.
is when a consumer tells the agency that they can not afford the monthly
payment and the agency recalculates with a lower quote. The agency will
the consumer into a hardship program where the tactics are almost
to low balling the creditors.
When a consumer tells an
agency that they cannot afford the amount quoted,
a reputable company
will advise them to look for other alternatives.
Debt Settlement In
Although debt settlement can be very advantageous, it
becomes a nightmare
when a consumer (who is concerned about their
credit) is tricked into it.
This usually occurs when the consumer is
quoted a monthly payment
that is half or less, than any other debt
consolidation agency provides.
In short, the consumers payment
is not disbursed to the creditors at all.
The payment is kept until all
accounts are turned over to collections. Then the
agency settles the
amount of debt usually 25 cents on the dollar and keeps all
remaining payments and fees made by the consumer. There are other tactic
variations with debt settlement used by different companies, but non of them
are any good or beneficial to the consumer who want to be debt free and
a good credit rating.
Settling a debt is as adverse
to your credit as bankruptcy. In both cases the debt is
like in debt consolidation.
So it makes no difference whether it states
on the consumers credit report
"Settlement" or "Bankruptcy".
The negative effect is virtually identical because the
consumer did not
pay back what they originally owed.
Debt settlement can be
advantageous if done properly by a professional
To learn more, see our
report on How to use Debt Settlement to your Advantage.
With a little common sense,
these type of tactics can be easily spotted.
Especially when the monthly
quote, multiplied by the months quoted, is less
than the debt
The different tactics use by the so
called rotten apples in the debt help industry that are
described here are
a general overview of what sometimes goes on. There are many other
inventive ways to trap a consumer in need of help.
The goal of this report
is to simply make everyone in need of help aware, so that they are
get the help they deserve.
If you are in need of help with debts
and unsure of where to go, we can provide you with
a free analysis of your
situation and an accurate monthly quote if you decide that
Consolidation is right for you.
here to fill out a short form. Your consultation will be provided
no cost or obligation and all your information is strictly confidential.
What Type Of Fees Should One
Expect To Pay Debt Consolidators
There are usually two type of fees
involved when signing up with Debt Consolidators:
Initial Set Up Fee
non profit agencies incur substantial cost when setting up an account for
debt consolidation. Most will charge a $299 one time set up fee.
This is normal and should be expected.
Certain agencies will ask for a
set up fee that is equal to the monthly quote and
refund it upon
completion of the program. That's even better. Just make sure you
provided with a refund certificate in writing. Anything above $299
non refundable is too much and should be avoided.
The monthly quote should always include the monthly
Some agencies charge a set fee (should not be more
than about $39 to $49) while
others will charge a per creditor (usually
no more than $8) fee.
Keep in mind that if a consumer is
signed up with a non profit organization,
all fees paid to them are
considered donations and are 100% tax deductible.
With this in mind,
the program is free to the consumer.
Other Criteria To Look
For When Seeking Out Debt Consolidators
Make sure the agency and/or
part of the agency that deals directly with the
There are many financial
firms offering debt consolidation programs today.
Many of these
companies are "for-profit", unregulated businesses. If a company
not being subsidized by the creditors, they must collect all
from the consumer. Many creditors will not work with
for-profit agencies or give the
same concessions to their clients.
A non profit agency has a stronger relationship with creditors and is able
the lowest payment and interest rates without any
sure the agency does not report to Credit Bureaus
are structured in a way where they work for the creditor and
consumer. In turn they report to credit bureaus.
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