Help with debt reduction companies?

Question

Are there any good debt reduction companies out there or are they scams? I have looked at Accelerated Financial Services, Debt Reduction Services and Elite Financial Services. Are they all basically the same thing? Do they work? Are there better types of companies that work with you and your credit card company to get payments down and have a set end date that your debt will be paid off? Any help would be great.

Answer 1

From what I have read, the only ones I think might be worth a shot are

In Charge debt solutions and Care One. Good luck.

Answer 2

Consumer Credit Counseling Services (CCCS) can negotiate lower payment and interest rates. This can be a good way to go. Contact your local Red Cross for a referral. CCCS does NOT negotiate settlements.

What you need to know about debt settlement firms:

Your credit card companies are not going to offer you settlements like 50%, for example, if you are current (not behind) on your payments. Basically, the only way you can get into a position to negotiate settlements is to deliberately let your accounts go into default. This is exactly what debt settlement firms do....They take a monthly amount from you and use that to build a “settlement” account, which will go towards paying the “settlement” at a certain date. Your creditors will deliberately not be paid. They will not be happy about this.

If you are current on your accounts, this process will ruin your credit rating as your accounts will all go into default. Your creditors are under no obligation whatsoever to accept settlements from any debt settlement firm you hire. Their response might be to serve you papers and take you to court.

You don’t have to pay any firm to attempt settlements. You can try this own your own. Just remember, if you currently have good credit, this process will ruin your credit and there’s no guarantee that your creditors will accept settlements. If you are currently in default on your credit cards, you can make your own settlement offers. You don’t need to pay anyone to do this for you.