Debt consolidation?
Everett M. Greene
services that advertise so much? I find it hard to believe
that the outfits are in the business for no profit.
facta non verba
These services are intereting. I used to work for a company that wrote
software for these things. I assume you mean Consumer Credit Counseiling
and Debt Consolidation...
OK, consumers who get into financial trouble will go to these folks.
These places have relationships with almost every creditor imaginable.
You take ALL your debt and income information to them, and they work out a
repayment plan for you. They contact all your creditors on your behalf,
and tell them that you will repay your debt under new rules. The
creditors vitrually ALWAYS agree, because they know that once a person is
in CCC, the next step is bankruptcy, and they won't see a dime.
Depending on the level of debt and your income, these repayment plans can
span several years. The creditors also have to agree to stop harrassing
you and not to extend any more credit.
So, they typically arrange for you to repay your debts so much per month,
without interest, or at a greatly reduced interest. These services
actually take your one consolidated payment per month, and split it out to
all your creditors, and then combine your debts with those of their other
clients. So, for instance, they write one check per month to Discover
card, and that check includes payments for all of their clients who owe
Discover.
Now, they are free to consumers. So far. Why? Because the CCC services
take a big chunk called "Fair Share." This is usually 15%. So, for
instance, if you work a payment plan with Discover card whereby you will
pay $100 a month, you give your payment to the CCC, they send Discover
$85, keep $15 for themselves, but Discover card credits you with a $100
payment. The creditors agree to this also, because it's cheaper than
collection and or debtor bankruptcy.
These "non-profits" tend to make a TON of dough...just think, no downside.
Money comes in, they take 15%, and the rest goes out. No Risk. If a
person defaults, they just kick them out of the program, and turn them
back over to the creditor's collection agents.
John
spa...@cires.colorado.edu
: Does anyone know what the catch is to the debt consolidation
: services that advertise so much? I find it hard to believe
: that the outfits are in the business for no profit.
I've heard it said that entering into an agreement with a service like this
puts a bad mark on your credit report.
facta non verba
<spa...@cires.colorado.edu> wrote:
>I've heard it said that entering into an agreement with a service like this
>puts a bad mark on your credit report.
If you get into one of these programs, you probably already have several
"bad marks" on your credit report. Entering into and completing a program
like this shows that you are more honorable than those that would simply
declare bankruptcy when it was not absolutely necessary.
John
Everett M. Greene
Suspicions confirmed! Thanks.
So these "non-profit" organizations are making a large profit.
So much for truth-in-advertising.
Kevin Neilson
don't make a profit in the sense that there is a dividend to pay out to
investors.
"Everett M. Greene" <moj...@iwvisp.com> wrote in message
news:20030105.79...@mojaveg.iwvisp.com...
rndg...@gmail.com
I PAY OFF USA AND CANADA LINE OF CREDIT AND CREDIT CARDS ONLINE USA AND CANADA ONLY
PLEASE NO OTHER COUNTRIES OR DEBIT CARDS ONLY CREDIT CARDS AND LINE OF CREDIT WITH ONLINE ACCESS
NO CALLBACK OR CHARGE BACK
NO UPFRONT FEES NO BS
+16043053538 USA
email kkdawsun gmail com