I have 20,000 in debt and am looking at this company for help. I have tried to get out of debt my self but i need help. Please only answer if you have used them. Are they good, bad, ok? Thanks
I’m going to break your rule and answer even though I haven’t used them.
I’ve checked online and know what they do as I’ve been involved with a similar company (DebtXS).
You pay them a bunch of money, they tell you to stop paying your credit card bills and put money aside every month, either in a personal bank account or one with them.
After a while, credit card companies will start offering to "settle" the debt- basically, you agree to pay 30, 40, or 50% of the debt and they’ll cancel it completely. If you don’t have the money in time to accept the offer, it’ll usually pass you by and you’ll be sent back to collection agencies and such. Also, if you DO accept the settlement, you’re going to be taxed on the amount of the original debt as if it’s income.
Also, there’s no guarantee that the credit card company WILL ever send you this offer, you’re just "hoping" that they act in this manner – they really do kinda treat each customer and each debt a little differently. They may just send you to a collection attorney who will DOUBLE your original debt and send you a summons saying "pay or we’ll get a judgment". They have to send a summons b/c you, like Cred Solutions will tell you to do, will ignore all letters/calls from collectors (and they consider the attorney to be just another collector until he sends you a summons).
You don’t have to pay some company to tell you to stop paying your bills and wait for a settlement offer if this is how you want to deal with your credit card debt (and believe me, I’ve been there, it’s a tough road with or without the company). You can stop paying your bills and wait for offers without their help.
I cannot strongly enough stress how BAD companies like this are.