A growing number of consumers are hiring debt management/settlement companies that claim to help them settle their debts for a fraction of what they owe. For the most part, nothing could be further from the truth. Most consumers after signing up with these companies wish they hadn't.

Debt management/settlement companies you see advertised on television, radio and print newspaper generally advise their customers to make monthly payments directly to their companies, instead of paying the creditors directly. In some cases they even set up wire transfers from customer checking accounts on a monthly bases to their accounts.

Debt management/settlement companies make promises which are misleading to consumers about the services they deliver and how long it takes to repay the creditors back, assuming that any of the creditors agree to their ridiculous terms of repayment.  They accumulate payments to settle debts for .30 to .50 cents on the dollars. The high fees charged by debt management/settlement companies can make paying off the debt almost impossible within a reasonable amount of time. 78% of their customers drop out within six months because they see nothing being applied to their debts and everything going to the debt management/settlement fees or into an escrow account that is controlled by these companies.

Debt management/settlement companies can charge up front fees ranging from 15% to 25% of the total amount owed. In addition, they charge a monthly service fee in the range of $50.00 per month. This money is coming out first before the first creditor is paid. Also, in some cases they charge additional fees to close out your case(s).

Meanwhile, your creditors are not being paid, so the interest and late fees are adding up. By the time they have your money into their accounts to pay your creditor it's too late. Consumers soon find themselves being sued and wage and bank garnishments filed against them. Once the judgments and garnishments are in place it's to late for the consumer who has paid for a service they believed would settle their debts. In addition, consumers have a hard time getting their money back from these companies once they understand what's going on. Many have had to hire attorneys to file bankruptcy just to protect their homes and wages. Don't get hooked into their promises that have very little value. The problem becomes even bigger if a lawsuit has been filed by the creditor's attorney. Holding your money to pay the creditor only to push the attorney for the creditor into garnishing your wages, bank accounts and property.

On average our offices receives six to eight calls a month from Defendants who have hired one of these debt management/settlement companies, believing that their debts were being paid. Only to find out it's not true when a Deputy Sheriff or a Private Processor has served them court papers to appear in court for a debt believed was being paid.

Court Mediation & Negotiation Provides A Truthful Alternative

There is a major difference between debt management/settlement companies and Court Mediation & Negotiations. First and foremost, we do not manage our clients payments to the creditor or their attorney, they do. We give straight answers, and honest legitimacy to settlement terms, for which our clients can pay and the creditors and attorneys will accept. 

When a Defendant hires our firm it's because a lawsuit has been filed against them or about to be filed against them. Our firm only works with court cases and the attorneys who work for the creditors. We negotiate directly with the attorney who has filed a lawsuit against the Defendant in order to prevent the garnishments of wages, bank accounts and property. Our fee is modest and only a one time fee, paid up front. Which we clearly explain to our clients at the outset. There are not any hidden costs or additional fees associated with our firm.

Once we reach settlement terms with the creditor and their attorney for our clients, they will be paying them directly. Defendants never pay our company what is due to the creditor. They will be paying the creditor directly. The terms of our negotiations with our clients, the creditor and the attorney is closed ended. Which means once we reach a settlement for you and prevent the garnishments or attachments of your wages, bank accounts, or property your case is closed with our offices. It does not mean that we are not there to help you, it just means that under the terms of settlement with our firm you will be paying the creditor and/or their attorney directly. This is to protect you so that you know that your payments are being made.

Don't get trapped into debt management/settlement programs. It could cost you thousands of dollars you did not need to pay, garnishments of your wages, bank attachments and property liens. We believe you should know the difference between our firm and others....