POST:
My 21 year old son wants to buy a home theater system using a Visa card and he has no intention of paying it back. He’s says that it’s OK because Debt Relief companies that advertise on shows like Hannity and Rush will fix it for you. It seems to me that someone has to pay for it in the end, but I know that Rush and Hannity would never advocate anything unethical.
It’s very simple… they take your money and then you owe more. there is nothing they can do that you can’t do by yourself. It’s all a scam.
SYD ANSWER:
It really is amazing how little research people do and then jump all over something.
First. The advertisements that are on Limbaugh and Hannity are paid for by companies. Meaning they are (Hannity and Limbaugh are not endorsing it) paid advertisement’s by the company for the company. A company buys space, the radio plays it, everyone makes money this has been going on for years. There is nothing new to this we see it in every sector of business.
Two. What this person is doing would be considered fraud and a debt settlement company (a real one) would not enter something like this into their program or condone someone who is doing this.
Three. If you have ever heard a commercial that states something similar to this you should report it to your state attorney general’s office. I am sure this would be considered unethical and pulled off the air. I personally have never heard anything that says “Go run up your bills and then we will pay them off”.
What Debt Settlement does do is help people who are having a difficult time paying their bills because of a hardship, and are seeking help to get out of debt. Please keep in mind that not everyone may even qualify for the program. Again a reputable Debt Settlement company should be able to tell you this. Also keep in mind that because it is a fairly new industry there are a lot of Rouge settlement companies who will take you for a ride. What I would suggest to do is research. Call a few companies, read about them online really get a feel for who you are dealing with. If you decide that it is not something for you, there are numerous other programs that might be such as debt management, debt consolidation and credit counseling just to name a few.
Here is a list of all the negatives that are involved with debt settlement. I would provide the positives but I am sure someone will argue those so I will only give you the negatives. Debt Settlement does have a negative impact on your credit score. You will get calls from your creditors and collections company. You could be sued or have your wages garnished. You will owe the IRS for any debt settled over $600.00 dollars. The debt settlement company makes money for providing this service.
It is also very true that you can do this yourself but that also applies to anything and everything. Most of us can cook and we do but sometimes we want someone else to do it for us so we dine out. If you work 12 hours a day I am sure the last thing you want to do on your free time is sit on hold with your creditors. Before making a decision in regards to the industry try talking to a few people who are in it. Find out what they are doing and how their program works, once you have done that you have earned the right to form an opinion.
Thanks
SYD