“We’ll help you settle your debts for pennies on the dollar.”
Sound familiar? Maybe you’ve seen these Credit Solutions ads on TV, on the internet or even in the New York subway. ABC News recently ran a segment where they investigated Credit Solutions and the debt settlement industry, which revealed that the debt settlement company is essentially running a scam.
If you’re struggling with large credit card debts, promises like this that offer to quickly reduce not just your debt but also your stress level most likely sound very appealing. The problem is that debt settlement companies like Credit Solutions (which happens to be the largest debt settlement company in the U.S.) aren’t able to actually help most people.
Of course, that doesn’t stop them from taking your money. And they take it up front. As the ABC News video shows, too many people have given money to debt settlement companies like Credit Solutions and then never hear from them again. What’s worse is they tell their customers to stop paying their credit card bills (which also must sound very appealing). So if you’re the customer already feeling financial stress, you’re out a couple thousand dollars and you still have all your credit card debt, except that now it’s worse due to accumulated interest and late fees.
Also, they’re not very transparent, so you’re taking a huge risk when you put your faith in one. Sure, they do help some people. But they’re cherry picking the best clients and ignoring the rest. So even if you heard from a friend who had a positive experience using them, just remember that’s the exception to the rule. It in no way means you’re going to get the same result. So why take the risk?
Using a debt settlement company is penny wise and pound foolish. If you’re looking for alternatives to bankruptcy in New York, make sure to deal with it properly from the start. Otherwise you’ll likely end up spending a lot more money and time dealing with it down the road.
Get in touch to sit down and talk with us for a free initial consultation to learn all of your options–bankruptcy and non-bankruptcy– for dealing with debt. And never pay anyone up-front to help you settle your debts.
