When will people realize debt management companies are worse than collection agencies?

it strikes me as odd that people think these companies actually help them.you as a consumer can do anything that debt management companies can do on your own.. As a collector, I understand that bad things happen to good people and they cannot get out from under debt..what a lot of people don't realize is that turning to a debt management company can hurt you even more.by stop making payments on your accounts and let them handle the account is not the way to go.if you are only 30 days behind and they tell you to stop paying because they want to wait until you've saved up enough to settle, this is damaging to your credit because the acct has probably charged off by the time you settle.yeah you may pay less but, you can negotiate with creditors yourself and most of the time prevent the charge off..and not pay a fee.remember, no such thing as not for profit..always someone trying to make a buck!

Answer:
You are 100% correct. As a licensed mortgage consultant, I see credit from A++++++++ to F. The one major thing that keeps people from getting a loan is consumer credit counseling/debt management. I have had customers with A+ credit get denied because they have been in debt management in the last two years. They are scams, they tell you not to pay your payments and then negotiate down the fees and interest on your behalf and pocket the difference and never tell you this. They are getting rich off of things you can do yourself. Good credit is your best friend, do everything you can to keep it clean of debt management companies.
When pigs fly.
When hell freezes over and the devil go ice skating
I've seen people here with horrendous stories about the debt management companies
It seems a lot of people think they really don't have to pay their way. Some will try anything to avoid actually paying for their own mistakes, and it costs them more in the long run. We can only help those who choose to work with us to get their account(s) current.
Amazing!

Yes, I will agree that debt management/repair agencies are a scam. But the reason people go there is they are between a rock and a hard place.

Deal with the collection agent or deal with a debt management company. Both are evil, lying, coniving groups who only want your money. They certainly are NOT trying to help you out. I've dealt with enough of them to know.

scrapper4point is a classic example of a collection agent. You are in debt because of your own mistakes??

Amazing!

What about placing some of the blame on the creditors who eagerly lend out money to people who obviously are not in a good financial position!

I'm working with someone who is deap in debt (lost job.but that's their mistake too). They showed me a pile of credit card offers they had received in the last week (7). Offers for mortgage refinancing. Offers for home equity loans.

And they would probably give them these loans, because they don't actully look at their credit situation.

People go to debt couseling agencies looking for advice, and end up being sucked into a service that they don't understand, and is not explained to them well. ie.a scam.

What they need are people like me who will tell them the truth, and point the way out of their situation. Sometimes it's bankruptcy. Most times it never involves calling a collection agent.

But blaming the debtor for their "mistakes" isn't what I do.

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