Posts Tagged ‘Education’

All Your Debt Relief Solution Needs A-Z

September 24th, 2022

How to choose the right debt settlement company
I suggest a settlement company that uses a law firm and not an arbitrator when dealing with your creditors. They typically have a higher success and satisfaction rating. A good question to ask is who does the actual negotiating? Try to find a company that does not outsource the negotiation process to some 3rd party company. When shopping for the best company you want to look at the total benefit to you. Don’t just look at what they charge you but also consider their ability to negotiate your debt to a lower amount because it does you no good to use the cheapest company (fee wise) if they stink at the negotiation process or if they outsource it (losing all quality control). For instance, if a particular company is able to save you let’s say an additional 7% due to good negotiating but there fees are higher than the competition by say 3%. It would still be in your best interest to use them due to the total savings realized once the program is done. Around 15% of your total debt is what you should expect to pay for a good debt settlement company. This should be included in your monthly payment and there should be NO upfront fees. Also, don’t pay much attention to what these companies estimate your total savings to be because it’s just that, an estimate and no one knows what your creditors are going to settle for until they actually settle! Always watch out for the slick talking sales associates that don’t have your best interests at heart. Make sure that the company you work with is a member of either T.A.S.C. or the U.S.O.B.A. which are both groups that help make sure that state and federal guidelines are being followed. And forget the BBB (better business bureau) because just about every company in the debt relief industry has an F rating because of the nature of the business. However, I would use the BBB to check the complaint history of a debt settlement company and the law firm they use. Personally I think the number one thing to look for is a quality sales representative that knows what they’re talking about and one that you feel you have built a solid relationship with. A bad Representative can make any company seem bad and vice versa. I like to see a company that has a sharp website which shows me that they are investing in their future and are not just a fly by night company. I would suggest going with a company that has more than just a settlement program as an option. This tells me that they’re less likely to be biased towards any one particular program.

Tax Implications and Debt Settlement
Debt settlement has become a popular approach to resolving problem debts without having to file bankruptcy. With this approach, creditors agree to accept a portion of what you owe (usually around 50% or less) to settle the account, and the remaining balance is forgiven. This technique will certainly continue to grow in popularity now that the new bankruptcy law makes it tougher to fully discharge debts in a Chapter 7 bankruptcy.

As with anything, there is no free lunch, and creditors are required to report canceled debts to the IRS on Form 1099 (when the canceled balance is $600 or greater). Therefore, the possibility exists that you may owe taxes on the forgiven portion of the debt. For this reason, many financial writers and debt counselors are strongly critical of debt settlement, to the point where they actually recommend against it just because you might end up owing taxes. But the tax consequences of settling your debts are greatly over-emphasized and this is really just a minor issue at best.

Debt Relief Industry – Major Online Investigation Reveals Number 1 Company, Ocean of Scam Companies

March 22nd, 2022

In recent months, we’ve seen many regulators and legal authorities in jurisdictions across the country signify official concern that an increasing number of companies which operate in the debt cures business today, are essentially debt relief scam operations that are out to cheat and dupe an overburdened debt-ridden population in a bad national economy. The most recent among those, is Attorney General Andrew Cuomo in New York, whose office had subpoenaed some 14 debt relief operations and one law firm in May 2009 from across the nation for investigations into their debt settlement operations.

Recent Major Debt Relief Scam Investigation by Online Review Organization

Quite coincidentally, that subject is, in fact, actually the subject matter of a recent full scale major independent investigation of the industry conducted by one reputable, independent online review organization that investigates online products and services or companies, especially in the debt cures business field, for their quality and authenticity. The results of that investigation is startling, showing that some 82.5% of the test sample group of website-based debt relief operations used (165 out of 200), were basically debt relief SCAMS. And that only 17.5 of them were of any legitimacy. There are some 12 companies nationally which the evaluations showed were of great quality, and one company that is of exceptional quality and rank exceptionally superior as the most trustworthy, and Number #1 debt relief company in America.

In its report of the findings of its investigations team just released in New York in mid May 2009, the Research division Director of the online research organization (see the link provided below at end of this article), stated that the review was prompted by the fact that,

“Consumers seem more and more today to be turning to debt relief operations for ways to pay off debts in response to the current American economic recession… most of those companies are competing to out do each other in their claims that they have the best debt relief programs. In constant advertisements on the Internet, radio and TV, they purport to provide excellence and the best services to customers on ways to pay off debts… Consequently, finding a truly good debt settlement company by a consumer under such circumstances, is not at all an easy task.”

The report adds, “With so many companies out there, they all soon start looking and sounding alike after a while, as are their TV, radio, and newspaper ads. So, how in the world can the average person tell what are good debt relief companies from the bad ones or the debt relief scams?”

The Major Findings of the Investigation

Basically, using the rigorous evaluation and ranking system devised by its review experts, called the “Key Debt Relief Evaluation Criteria” or KDREC, the review team scored and ranked 12 debt relief companies from across the country as ranking as the TOP DOZEN Online debt relief companies in the industry having the highest levels of professionalism, reliability and credibility in the critical criteria areas of evaluation for the industry — accreditation by the Bureau of Better Business and by recognized certification institution for the debt relief industry, professional reputation, charges and cost of service to consumer, results of company background checks on expertise, quality of personnel, personnel education and training, length of time in the industry, past record in the business and in delivery of the services, customer satisfaction, etc.

What are good debt relief companies? And are there many debt relief scam companies in the online settlement industry?

Well, some of the detailed findings made by the comprehensive investigation conducted by the expert team of researchers commissioned by the organization, were quite startling.

Among the major findings, are the following:

“SUMMARY:

==Over four-fifths (some 82.5%) of the test sample group of website-based debt relief operations used (165 out of 200), were basically what you’d call debt relief SCAMS or fraud operations — that is, they were merely worthless website operations that have no business at all on the Internet peddling any debt cures business to consumers, and at best bordering on fraud, with no value-added and absolutely the kind of sites that should be a complete no-no for any and all wise consumers to shop in.

==Just 17.50% of the 200 company websites reviewed in our test sample (35 of the 200) are legitimate debt relief operations that are seemingly responsible business operations and fairly reliable, although the detailed extent of the quality of their services was variable in degree from one company to another.

==Some 12 companies in the sample group emerged, using certain defined additional evaluation criteria (such as the service affordability for the average person, security of website, evidence of large amount of savings to clients or whether company has successfully reduced millions of dollars of consumer and small business debt, customer satisfaction response times, flexibility of the program based on what a customer may have available on a monthly basis, etc), to additionally assess them, as the best debt relief programs, the very TOP DOZEN online debt relief companies in the whole country,