Debt Free League

As the financial strength of some of the most prestigious banks crumbles, “debt Negotiation” keeps rising in popularity. However, Debt Free League would like to caution that many debt negotiation companies are further abusing consumers and small business owners with debt and credit problems.  In recent years, there have been numerous complaints against debt negotiation companies for “charging consumers excessive fees” and “failing to reduce consumer’s debts as promised.”

Being an ethical organization that cares about stopping these unconscionable abuses, we commend Illinois Attorney General Lisa Madigan, who decided to take action to protect consumers against unscrupulous debt negotiation companies. In 2009, the Attorney General, whose office over the past few years has received more than 12,000 consumer complaints regarding debt and credit issues, sued Credit Solutions of America (CSA) alleging the debt negotiation company falsely claimed that its services can help to reduce consumers’ credit card debt by 50 percent.

In the Attorney General’s lawsuit, she contends the debt negotiation company “continually failed to negotiate with consumers’ creditors” and that “as a result of CSA’s failure to take any effective debt settlement action on behalf of consumers, creditors frequently sue consumers to collect on the outstanding balances.”

The debt negotiation company also “charged an upfront fee of up to 10% of the consumer’s debt and when they settled one of the consumer’s accounts, then  they charged a settlement fee of 13% of the amount by which they were able to reduce the consumer’s debt.” Ouch!!!  How would these poor consumers manage to get out of debt after paying a ridiculous 23 percent in fees?

Additionally, Madigan filed a lawsuit on Debt Relief USA alleging that despite its promise, the company “failed to negotiate substantial reductions on most consumers’ accounts” although no company can legally make this guarantee.

While recently surfing the web, we came across one of the most absurd guarantees.  It’s the “$25,000 GUARANTEE” offered by Rise Above Debt Relief out of Frisco, Texas.  Incredibly, this debt negotiation company guarantees that people who enroll in their program will save money and receive a total average savings of 30%, or they will pay them “$25,000 in cash!” Now, that’s a crazy, insane offer just on the basis that there’s no guarantee any creditor will agree to negotiate with this company.

Sadly, if you look around, you will see many other companies making similar promises.  But, until the state Attorney General or the Federal Trade Commission step in, these undeliverable promises and guarantees won’t stop!  But, thankfully, action is under way…

The Federal trade Commission, which has fined numerous debt negotiation companies for “guaranteeing to settle a debtor’s unsecured debt for a specific percentage, recently received a collaborated letter from the attorneys general of 40 states, requesting for the Federal Trade Commission to impose stricter regulations on companies offering debt relief services.  The letter to the FTC involved attorneys general from Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wyoming.

In closing, remember that there are both good and bad debt negotiation companies.  But you must know what look for to weed out the bad ones.  A legitimate company will not make any type of debt reduction guarantee.  But, as a measure, you can ask them to provide their monthly or quarterly debt settlement average.  This is the combined average of settlements the company collectively reached with different creditors.

The average settlement of a debt negotiation company with a good track record is about 50% of the client’s total enrolled debt.  Keep in mind that a given debt settlement percentage may fluctuate depending on various factors and actions taken by creditors.

Another approach to find a good debt negotiation company is to ask for proof of their actual debt settlements. The company should be able to provide you with a copy of a recent debt settlement letter, preferably a debt settlement letter of one or more creditor accounts that you plan to enroll.

Here’s an example…

At the website of the National Debt Relief Stimulus Plan you can view various debt settlement letter examples on debt settlements that Debt Free League has reached not only with some of the nation’s top creditors, but also with debt collection agencies, and debt collection attorneys.  However, a big warning sign is if the debt negotiation company can not provide you proof of any authentic debt settlement letter bearing their name.  Many companies outsource the same debt negotiation service that they’re selling.  So be very careful.  If they don’t have their own experienced debt negotiators, you should think twice about enrolling.

This blog thread was provided courtesy of Debt Free League and its Spanish affiliate Libre de Deudas.

Although it can effectively help a person who is drowning in debt to avoid bankruptcy and prevent creditor harassment, and provides unparalleled credit card debt reduction, business debt reduction, and medical debt reduction benefits, finding the right debt negotiation company requires a lot of caution.

Over the years, far too many complaints have been filed against abusive debt negotiation companies due to “charging consumers excessive fees” and “failing to reduce consumer’s debts as promised.”  Due to these abuses, we’d like to commend Illinois Attorney General, Lisa Madigan, who recently filed a lawsuit on Debt Relief USA.  Madigan alleges that despite its promise, the company “failed to negotiate substantial reductions on most consumers’ accounts” although no company can legally make this guarantee.

She also alleges the debt negotiation company “charged an upfront fee of up to 10% of the consumer’s debt and when they settled one of the consumer’s accounts, they charged a settlement fee of 13% of the amount by which they were able to reduce the consumer’s debt.” Ouch!  Having to pay 23 percent in fees is a total consumer rip off!!!

It seems an abusive debt negotiation company seems to sprout every day.  So, one must be careful to avoid unscrupulous operators.  In finding a fair and ethical service, we recommend avoiding any debt negotiation company that promises or guarantees to get any type of debt settlement results.  Instead, look a company with a track record in getting results.  The many debt settlement letters posted on the Debt Free League website demonstrate our expert debt negotiation company has a solid history in producing successful debt negotiations.

You should also be concerned about having to pay a heavy price in fees.  A debt negotiation company that charges a lot in fees prefers to hide their fees in the fine print.  But a reasonable company you can trust will openly talk about their fees.

In 2009, Debt Free League made a noteworthy decision to help consumers in debt by lowering their debt negotiation fee to the LOWEST in the debt negotiation industry.  The new fee equals 10 percent of the consumer’s total enrolled debt.  This is a bold statement since this fee is at least one third less than most other companies’, which generally charge a fee equal to 15 percent or more of the total enrolled debt.

The added savings in fees has allowed people who need superior debt relief to buildup their settlement funds in a shorter period of time in order to get out of debt faster. As a result, in the last quarter of 2009, most Debt Free League clients reached their first debt settlement between the 5^th and 7^th month of their initial enrollment as opposed to the typical debt negotiation company client, whose first settlement can take 9-12 months due to having to pay much higher fees.

This blog thread was provided courtesy of Debt Free League and its Spanish affiliate Libre de Deudas.

A major reason people get buried deeper in debt is that they procrastinate.  Then, once they decide to take action, they often make the wrong credit card debt reduction choice.  However, the key to expeditiously get out of debt is “being informed.”  This starts by knowing about the causes and solutions to your debt

In the past year, we also started recommending a free book to help people make better debt elimination choices.  The book, “Settle Personal, Medical, and Business Debt for PENNIES on the Dollar” is still available at www.DebtFreeLeague.com.  But hurry while supplies last!

In reading this special financial empowerment book, you will learn how abusive credit card company schemes have spread consumer ignorance over the past 50 years.  One of the schemes spoken of is the infamous practice of the “Universal Default”, which even if cardholders pay their bills on time, allows credit card companies to impose interest rate hikes on them as high as 35%.  It’s a completely absurd, yet perfectly legal banking practice. Fortunately, this book blows the lid wide open on this and many other SECRETS to help debtors level the playing field with their creditors.

Equally as important, debtors who are at a serious boiling point with their debts can relieve a lot of stress by applying the credit card debt reduction strategies offered by the National Debt Relief Stimulus Plan.  Using this powerful debt relief solution a debtor can dramatically lower the balances on Visa credit card accounts, Master Card credit card accounts, Discover credit card accounts, American Express credit card accounts, and a variety of accounts on department store credit cards.  Additionally, the solution is also ideal for business debt reduction and medical debt reduction.

However, many debt settlement companies don’t want debtors to know about the National Debt Relief Stimulus Plan.  A top reason is because the debt settlement program benefits to debtors go well beyond credit card debt reduction.  People who enroll in the debt free program also save a lot of money in debt negotiation fees, being the lowest in the debt settlement industry. While most debt settlement programs charge debtors a debt negotiation fee equal to 15 percent of the debtor’s total enrolled debt, the debt negotiation fee of the National Debt Relief Stimulus Plan is one third LESS, only 10 PERCENT.

Plus, the debt settlement program continues helping the debtor with a unique, 100% Money-back Guarantee.  The concept, which tackles buyer’s remorse, is to ensure that people who recently enrolled in the program are 100% confident that they made the right decision.  That is why, if for any reason, a new client decides to cancel from our program within 30 days of enrollment, he or she will be refunded 100% of the initial deposit.

But that’s not all…

People who cancel from the program due to an additional financial hardship also qualify to receive a Reenrollment Credit.  If they decide to reenroll, the program will give them a credit of up to 100% credit of the fees they previously paid!  Now that’s what you call “PEACE OF MIND.”

This blog thread was provided courtesy of Debt Free League and its Spanish affiliate Libre de Deudas.

Looking for a bankruptcy alternative won’t be an easy move for people who are buried in small business debt. For a small business owner non-homeowner, or a small business owner homeowner with a home that has no equity, the idea of getting a debt consolidation loan is out the window.  Qualifying for a debt consolidation loan requires ownership of property that has sufficient equity to serve as collateral to guarantee repayment of the debt consolidation loan. Additionally, in getting the debt consolidation loan, the small business owner would risk losing his or her property in the event of non-payment of the debt consolidation loan.

Although for many, joining a credit counseling program can assist with them to prevent creditor harassment and steep personal credit card debt reduction benefits, a credit counseling program will not be able to help a small business owner get business debt reduction.  Unfortunately, this form of debt consolidation does not provide any type of business debt reduction.  Plus, it’s not a great bankruptcy alternative since it also strikes out in providing medical debt reduction.

On the contrary, enlisting the services of a debt settlement company does help with business debt reduction and in the event the small business owner also needs medical debt reduction.  Thankfully, a debt settlement company can also provide debt relief on a lot more than business credit card debt.  They can also negotiate settlements of business leases, business contracts, commercial lease disputes, equipment leases, and even vendor lawsuits and judgments.  And let’s not forget the wonders it can provide with medical debt reduction.  There really isn’t a bankruptcy alternative that’s more powerful.

This blog thread was provided courtesy of Debt Free League and its Spanish affiliate Libre de Deudas.

There is a lot of consumer financial enslavement schemes that banks don’t want you to know about.  Let’s face it – their aim is to get you to live in financial slavery.  However, here’s some strong debt-free advice: read SETTLE Personal, Medical & Business Debt for PENNIES on the Dollar ©.

It’s a totally free book that’s available at http://debtfreeleague.com/bookcover.html.  Even if you’re knee-deep in debt, the book will teach you the right debt elimination solution to avoid bankruptcy.  Soon after reading this book, people have found that there was no need to head for the hills or line up in bankruptcy court.

In Chapter 1 of the book, considerable insight is provided about America’s usurious history with debt. The book also blows wide open various hidden financial industry schemes and identifies the top debt elimination options, such as bankruptcy, a debt consolidation loan, and credit counseling.  And let’s not forget the credit counseling alternative known as “debt settlement.”   It appears that for people who truly want to get out of debt, there may not be a better alternative than the credit card debt reduction and medical debt reduction benefits of a debt settlement company. These are wonderful benefits that can help a debtor to substantially slash a lot more than just credit card debt interest rates.

Another key point in the debt elimination book are the valuable tips it provides to beat the debt collectors at their game.  Refreshingly, you can also learn how to effectively stop the abusive collection calls. Plus, there are great business debt reduction tips for the self employed. If you’re a small business owner, reading this book may open your mind to a find a better solution to get out of debt than deciding to file for Chapter 7 or Chapter 11 bankruptcy.

This blog thread was provided courtesy of Debt Free League and its Spanish affiliate Libre de Deudas.  For more information on debt relief visit “Debt Settlement Blog” at http://debtfreeleague1.wordpress.com/

When searching for a quality debt settlement company, it is important that you find a reputable company that operates in the spirit of full disclosure, and doesn’t low ball. Especially in our unstable economy, far too many debt settlement companies are pulling the wool over the eyes of many unsuspecting consumers. One of their false claims includes guaranteeing to settle a debt for a specific reduced amount.

The most scandalous debt settlement companies also low ball estimates, quoting in the “30-40%” range to attract people with superficially low monthly installments. More recently, our eyebrows were raised by a person with a $76,000 debt who was grossly misquoted by a law firm that also specializes in debt settlement. The fooled individual almost signed up with this law firm because they offered a lower monthly payment. But upon further review, we found ALL OF THE FOLLOWING loopholes in this competitor’s written quote:

Not only was their quote about $8,000 higher in fees than ours, but their monthly payments included a “Good Faith Down Payment” fee. Unbelievably, the fee which was over $5,000 had to paid in the first four months. Thus, it would take FIVE months for this poor guy to start saving the first penny toward building up settlement funds.

It gets much worse! The law firm also charged a fee of 25% of the savings based on an estimated settlement average of 40%. But despite this foreseeable projection, the company’s estimate was far UNREALISTIC! Here’s why. On the average, a debt settlement client has six accounts; each being settled one at a time, roughly in 6-8 months. Thus, until the remaining accounts are settled, the account balances continue accruing interest, late fees, and possible over-the-limit fees.

A problem with the common “low-ball” practice is that people assume they’re getting out of debt a lot sooner. Yet, because of the add-on of interest and fees to the debt balance, an estimated 36 month program could easily take 40 or more months to complete.

A second problem is that people that join these types of companies often end up paying a lot more in fees. For example, if you enrolled an account balance of $7,000, which ten months later increases to $7,700 (due to interest and fees), your fees would be based on the new $7,700 balance, not on the enrolled account balance! This explains why the settlement law firm’s monthly payments were lower than ours.

In contrast, because our company, Debt Free League factors in the time it would take for each debt to be physically settled, we estimate our settlements at 50% and adjust the monthly payments accordingly to include the future accrual of interest and fees. The other great news is that this allows our clients to save more each month. And by saving more, you can settle your debt much faster and potentially waive unnecessary interest and fees. Because of this, while most people experience their first settlement in 8 to 10 months, many of our clients have pleasantly seen their first settlements in only five to six months!

Again, countering the uncertainty of just how much a person would actually end up paying to a debt settlment company, such as this law firm, we base our fee on a flat amount of the actual enrolled account balance. Thus, if you enrolled in our program a $5,000 Bank of America account that eventually grew to a $5,500 balance at the point it was settled, you wouldn’t need to pay us additional fees. Instead, your fee would be based on the $7,000 account balance that you originally enrolled.

In closing if debt settlement company’s low monthly payment sounds too good to be true, chances are that in the long run, you’ll pay a whole lot more than you thought!

To view some examples of actual Debt Free League client settlements, go to: http://www.debtfreeleague.com/settlement_examples.html

Debt Free League
http://www.debtfreeleague.com/
1-800-213-9968

Our Debt Liquidation Program is much friendlier than the stringent qualification requirements of a consumer credit counseling program. As a candidate for our program you only need to have a minimum unsecured debt of $5,000. You can also include in the program a variety of unsecured personal, medical, and business debts including that are normally excluded through debt consolidations.

Some of these accounts include:

● Credit cards
● Gas and Department store cards
● Finance company accounts
● Bank signature loans
● Medical and dental bills
● Collection accounts
● Post-property foreclosure deficiency balances
● Post-vehicle repossession deficiency balances
● Judgments
● Business debt

In summary, our Debt Liquidation Program, which is available in most 50 states, is a superior choice over consumer credit counseling debt consolidations. It clearly beats debt consolidations by serving a wide range of both consumer and business debt elimination needs.

For more information, call 1-800-213-9968 or visit DEBTFREELEAGUE.COM.

Medical debt destroys many families and causes almost half of all yearly personal bankruptcy filings. Unfortunately, the debt consolidations offered through consumer credit counseling can not relief you of medical debt. Oftentimes, people that are burdened by medical debt are clueless in finding a practical solution.

Demonstrating our superiority to debt consolidations, our debt settlement, Debt Liquidation Program is a proven effective solution in eliminating medical debt. This powerful debt management solution has helped uninsured and underinsured middle-class families who suffered uneventful illnesses and accidents to avoid bankruptcy and effectively settle extensive medical bills.

Employing a sound debt negotiation strategy, our personal and business debt negotiators have effectively settled many types of medical debts, including hospital, doctor, and dental bills, past due medical accounts, medical collection and charge off accounts, disputed medical bills, and medical judgments.

For more information, call 1-800-213-9968 or visit DEBTFREELEAGUE.COM.