After several years of research, direct involvement in the industry and hearing literally hundreds of horror stories during my consultations with consumers, I am convinced that better than 95% of the Debt Settlement companies in existence are leading clients to financial disaster.  Either through Greed, Ignorance or both, they are charging big fees, for big promises and little results. It would be generous of me to say that most of these companies have less than a 25% success rate.

Over the years I have found one very common thread among the majority of these programs.  Their salesmen (Pronounced, Telemarketers), do not educate consumers about what debt settlement actually is. This is because most of them don’t even have a clue themselves. Their job is to sell, sell, sell, not worry about whether or not a consumer will be successful. After all, they probably charge all their fees upfront. So why should they care if a consumer ends up in bankruptcy next year?

Debt Settlement companies are blasting Consumers with Television, Radio and Internet ads like never before. All promising the magic pill for what ails them.  Let us cut your debt by up to 70%, just call now for a Free Consultation (Pronounced, Sales Pitch), and we will wipe out everything (Including your wallet).

Consumers are drowning and most of these guys are throwing out bricks. Do not call a debt settlement company for a consultation unless you already know if Debt Settlement will make sense for your situation.  Just like you would never ask a car salesman if you should buy a new car, you don’t ask a debt settlement salesman if you should settle your debts.

Debt Settlement is an aggressive approach to getting out of debt. It is not right for everyone.  I tried to find a video online that gave a straightforward and honest look at what debt settlement was and when it made sense. I couldn’t find one so I created my own.

If you are in Debt and really wanting to research and learn ALL of your options, I recommend you watch this video before calling any Debt Settlement Company. At the very least it will allow you to spot the sharks circling above your head.

Here is a link to the Free video

Related posts:

1. Top 5 myths told by Debt Settlement Companies
2. Debt Settlement Radio Ads Make my Head Hurt
3. How to find the Best Debt Settlement Company for you.
4. Freedom debt relief says upfront fees help consumers-I say Bullshit-What say you?
5. Chase forcing more consumers to turn to Debt Settlement or Bankruptcy

There doesn’t seem to be any limits to how low these marketing firms will go to push people that are struggling financially into bad programs just to make a buck.  Of course a quick search online found that this company had an F rating with the BBB and numerous other sites where consumers had complained  about this program.  The complaints all tend to be about the same.  Usually that consumers were mislead, that the program wasn’t explained properly, the fees where much higher than they were told, the creditors continued to hound the consumer with phone calls, and the list goes on.

Of course the Ad prompts consumers to call for their “free – no obligation – consultation”, which is nothing more than a sales pitch.  After all, they pay a lot of money for those radio spots, so if they are giving you a free consultation, they have to make that money back somehow.

The bottom line is there is no federal program forcing banks to settle debts.  Banks were settling debts with consumers long before the federal bailouts and they will continue to do it when it makes sense.  It is true that some banks have softened a little and are offering better deals to consumers than they were 12 months ago, but that is only because it makes financial sense for the bank, not because of some federal mandate.   This settlement company that was on the radio is simply puting a new bow on the same box of junk.

Consumers need to do a heavy amount of research before deciding on a specific strategy for getting out of debt.  Especially if you are looking at debt settlement.  If you are going swimming with sharks, you better know what you are doing.  Don’t ever call a debt settlement company thinking that you will get a financial consultation.  You call a debt settlement company only to learn the specifics about their program.  Do not rely on them to asses your financial situation and educate you on whether you should settle your debts.  Not surprisingly if you ask them whether or not you should, the answer will usually be Yes.

Would you ask a car dealer if you should buy a new car or just have your old one fixed?

Related posts:

1. New Debt Settlement Video is Eye Opening for Consumers
2. Top 5 Reasons Most Debt Settlement Companies Fail their Clients.
3. Chase forcing more consumers to turn to Debt Settlement or Bankruptcy
4. How to find the Best Debt Settlement Company for you.
5. Top 5 myths told by Debt Settlement Companies