Debt elimination is a dream shared by the millions of consumers who find owing money to credit cards, banks, or lenders. To be blunt and painful; debt elimination is nothing but a dream and a scam.
This scam is growing fast as the financial crisis continues to worsen. The people behind the idea of debt elimination have no qualms about taking advantage of someone’s weaken emotional and economical state for their own benefit. The promise of debt elimination is just that the elimination of any debt which is why it is so appealing to consumers who face foreclosure or bankruptcy. This type of solution just does not exist. For those that fall for the scam they will be out several thousands of dollars of which they really didn’t have to spend in the first place.
There are many tactics used by debt elimination companies but it all centers around the core idea that credit lines are illegal. Sure, this sounds ridiculous but everyday countless consumers fall for the scam giving away large sums of money for nothing. The debt elimination companies will tell their victims that that credit card or line of credit from the bank is illegal so you don’t have to pay the debt. In fact, with the scammers legal expertise they will be able to take the credit card companies and banks to court who will quickly retract the debt not wanting word of their illegal activities to leak out to the general public.
The debt elimination company will give you promise after promise and make grandiose claim after grandiose claim. Using bits and pieces of the actual law to pepper their sales pitch with a hint of legitimacy the company will then ask for a large sum of money upfront for a paper or a waiver that will make that debt disappear. The quotes that are used to make the claim seem honest are taken out of context and used inappropriately and to the ill informed sound like an answer to a prayer. If you fall for this scam and take that waiver to your lender or bank they will probably not laugh at you but they will confiscate the waiver and contact the FBI. Not only will you be facing intense questioning but you will be out thousands of dollars and will still be responsible for your debt.
There are several variations of this scam all centering on the claim that the credit loan is illegal. Consumers with credit card debts are not the only one being inundated with offers of debt elimination. Those with mortgages and facing foreclosure are tempted to take the offer in a desperate attempt to save their home. No matter what debt they claim to eliminate it is all a scam. What the credit card companies and banks do are legal, if it were illegal the government would’ve stepped in long ago. There is no secret magic pill offered exclusively to you no matter how desperately you need it.
Now, there are several legitimate ways to reduce your debt. The problem many have with these legal methods is that it takes time, hard work, and constraint. Remember, if it is too good to be true then it often times is.
Difficult financial times are never an easy event to navigate through. If you are serious about rebuilding your credit and getting out of debt you will have to work hard. The legitimate debt recovery programs will provide you with the tools and knowledge to help you pay off those debts. If you borrow money you will have to pay it back. As soon as you find yourself facing more debt then you can manage seek help from a reputable and legal debt consolidation and management organization and avoid anything that promises magic beans.
If you are in debt and seeking debt elimination, TFGI.com and its’ partners will be able to offer you a no obligation quote to consolidate your debts and become debt free in as little as 12 to 48 months.
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Agreed.. there are many scams out there however some debt elimination companies actually can do what they say..
For example; my company has eliminated over 150,000,000 million dollars worth of credit card debt… We dont settle, consolidate or negotiate debt and we do not offer refinancing or bankruptcy services either.
We can completely eliminate credit card debt using existing federal law. There is no secret magical process. Our proven practices are actually public knowledge, theyre just not common knowledge.
Best of luck
Tom@zeromydebtnow.com
i was contacted by a company offering me and telling me all loans/credit cards taken out before 2005 was legally legistated incorrectly and with a payment fee of £500 all depts could be elimnated., and the whole process would take 12 weeks, how do you know ehich ones are the scams, i guess check out the company if you can, your comments will be much appreciated.
True, the majority of the debt elimination comapnies are scammers. Especially the ones who tell you that credit lines are illegal and that is your defense. But there are a few legit companies out there. I was a customer of one of them. They helped me eliminate $70,000 in credit card debt. It took a couple of years and some work, and meticulous record keeping, but with their support and the legal documents they helped me with and the regular conference calls helped me to achieve debt freedom. It did damage my credit during that time, but the last step in the process is credit repair, which I am doing now. So, it is possible, buyer beware, you must investigate the company you plan to use very carefully.
For the people who can read and write, think and conclude…the answer is in plain English.
Take some time to learn…turn off the boob tube.
The truth is written. Most “loans” are the real scam.
It is terrible that there are people like this original poster who are helping to extend the lie. Of course the government isn’t going to declare what the credit card companies are doing is illegal. Then they would have to admit that they are partners with the banking institutions. If you need to be more educated on the system that exists, simply read the publications produced by the Federal Reserve itself. Modern Money Mechanics and the Two faces of debt. These two pieces alone will show you that the concept of credit cards and loans are preposterous. How can a company loan me money that I personally deposited through my signature and then charge me interest to do it. In contrat law for a contract to enforceable there must be “valuable considerations from both parties” and a loan or a credit card has no valuable consideration offered by the lending party. They can’t because they are offering to ou your own consideration. According to the regulations placed on any banking or holding institution, the institution is forbidden to loan depositor money and they cannot lend their own money. A promissay note is presented to the Federal Reserve for cash equivalent and the funds are created. The funds are then deposited into an account and transferred to the borrower. Therefore the is no loss or risk incurred by the lending institution. You cannot owe a debt because the institution did not lend you anything. They simply took your signature and gave it value. Try being informed. If you don’t believe me ask your institution to give you validation of the debt and proof of the accounting of the loss.
I am in the debt settlement industry as well, and yes their are scam companies out there, but does that mean my company is a scam? Of coarse not, my company is currently handling about 2 million dollars in consumer credit card debt per week, and its people like the one who wrote this arcticle that make my job more difficult every day. Understandable that you have to do the research on a company before signing up, but if you choose the right company to service your debt than you will be able to live a debt free life again. Its the credit card companies who are the real crooks.
The Internet is full of scammers. Marketing companies that sell “snake oil”and hand the suckers off.
llinois is the home of crazy govenors and scammers.
These sweet talking sales liars talk you out of your money promissing debt elimination, invalidation and resolution.
They add no value and deposit you to a company who will give you worthless tactics which lead to judgments and bankruptcy.
They provide worthless delay tactics which get you deeper in the hole
There happens to be a class action law suit against this group.
I can provide more support to help you survive their nonsense
contact.:
creditdefenseleague@yahoo.com
This is all bogus. Everyone who gets a credit card knows or should what they’re getting into. You agree to use someone else’s money to buy a flatscreen TV. You agree to pay back the money with interest. That simple, folks, and trying to get someone else to pay is called, “irresponsible.”
There, I said it. That’s it.
Here is a plan that will work but takes time, dilligence and discipline.
Cut up your credit cards…. don’t cancel the accounts… just cut up the cards.
Credit Card Debt: Start making twice the minimum payment on the card that has the highest balance and highest interest rate.
If possible pay as much down on this card as you can. Keep making min. payments on the other cards. Once the first card is paid off apply those payments to the second highest cards and add the min. payment you already pay on that card… and so on until they are all paid off.
This can take years… but it was you that spend that money and nobody but you got you into this mess.
While you are trying to pay down your debt it is important that you have a strict budget.
Sit down and write down the following:
Monthly Income
minus fixed bills (rent, utilities, set amount paid towards credit card debt, etc. AND fixed amount that goes into a savings account, even if it is just $25 a month.
What is left is your discretionary income and you divide this by 4.
Now you have the amount left that you can spend during the week on food, gas and whatever else you need.
Besides the set amount for your savings account you also need to set aside on a monthly basis any money you need for bills that come due only once or twice a year… car insurance, taxes due for property, etc.
i like the do it yourself approach. why pay expensive fees to settlement companies when you can contact the creditors yourself to request a settlement? or at least if you hire a settlement company do your research on them first before paying a hefty fee. i have some notes at how-to-negotiate-debt.com