The Truth of Credit

I know you have heard the radio commercials offering promises of “freedom from debt in 36 months” etc… My favorite part is when they claim to know the “SECRET” the credit card companies don’t want you to hear. So here it is, the big secret, the one that has made an entire industry of Debt Settlement companies. Credit Card companies, after a certain number of months of non-payment, are willing to take less than the full legally-owed balance.

This is not a big secret at all. In fact, the first few debt settlement companies were run by the credit card companies (some still are). However, the bigger secret is the process in which these companies do their work. They essentially use the leverage of withholding payments with the assumption that the card companies will accept a ridiculous settlement of 50% or lower. Obviously, this is a simplified explanation but it is basically the formula used by the majority of these companies.

The TRUTH is that Debt Settlement Companies have a niche to fill. However, if you dedicate yourself to learning about negotiating debts for yourself, you can do just as well or better then these so-called “professionals”.

If you enjoyed this post, make sure you subscribe to my RSS feed!