Debt Settlement is a SCAM?

by Nasrul Hanis

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In fact, most debt consolidation companies do nothing better than simply ruin your fico score in order to settle your debts!

{ 7 comments… read them below or add one }

elohelreh December 30, 2010 at 7:23 pm

Collection law firms don’t usually report to credit bureaus. Their clients – the creditor – does. The only way the creditor knows anything about the account – outside of approving a below blanket SIF – is how the collections firm closes an account. If the firm uses a SIF close on their side, the creditor then reports to the bureaus as SIF (and likewise if the firm uses PIF, the bureaus receive PIF). On the whole DSC are such crap and waste of money. I love the advice Suze is giving in this!


peterg2101 December 30, 2010 at 10:30 pm

This is what I find funny. Who has $7,000 and has past due debts. They don’t, otherwise they would pay their bills. People who are past due, typically suffered some loss of income or have poor money management skills and cannot save money on their own for their settlements. This is the main reason why debt settlement companies exist. Providing lower payments and saving money on the clients behalf, thus allowing the clients to be debt free in the near future.


bafldenmark December 31, 2010 at 12:48 am

Interesting video, however using the word “debt” doesnt seem appropriate. You created the money in the first place with your signature/pin. Try ask about their proof of claim for being the creditor.


keu143146 December 31, 2010 at 1:13 am

what I am doing is changing my whole lifestyle and getting out of debt as fast as possible….paying 1 card down at a time…..I have two left and hope to be out in about 14 months.(: God is helping me along the way….! (:


HollywoodSheen December 31, 2010 at 2:02 am

When u pay a collector, request that they delete the acct completely, not report it as “paid in full”. Reporting it as paid in full does nothing for ur score, u want it deleted.


williont December 31, 2010 at 3:01 am

There is no how reputable debt settlement company will ignore charges. They crop their interest from this. you can equally get this tips to get out of debt


lorilynneottley December 31, 2010 at 4:31 am

My husband lives in a seperate town due to working situation. My name is not on some of the credit cards, but I’m going to start attempting to settle the debts ourselves soon. Will they deal with me even though I’m not on some of the accounts?


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