Familiar wtih "Clear Debt Solutions"??

iVillage Member
Registered: 07-06-2009
Familiar wtih "Clear Debt Solutions"??
2
Mon, 08-31-2009 - 2:46pm

Just wondering if any of you have any experience with this company? Are they legit?

This is for my mom again.

I am still going to try do this on my own without any help but I don't want her to get screwed.

iVillage Member
Registered: 08-04-2008

Don't know about that particular company, but most of those firms operate like this:
- They counsel the customer to get a prepaid cell and to change all phone numbers on all CCs
- They tell them to stop paying all CCs and pay them that same amount
- When the calls and letters come in they teach their customer how to be nice, but how to say they do not have the payment
- Eventually they want the debts to be sold to collectors or the CC companies to offer a "settlement"
- They pride themselves on their customers paying less than the total amount owed as a settlement

So if you owed BofA $10,000 they would say pay the minimum to them - say $300, that would accumulate over 10 months or so with all other debts until there is like $3,000 and when the collector calls, they would coach you to say that you would settle the debt for $3000.

Remember they get a fee for all this coaching and or holding on to your money.

I personally don't like it because it reeks of fraud. I made the debts, I will work to pay them. Yes the CC companies charge really high interest now, but if you are in a hardship situation, you can make payment arrangements with them directly to lower the interest and the payment amounts. Your credit record is destroyed using this method, so getting anything in the next 5 - 7 years would be difficult at best. And I don't have enough money to pay a debt settlement company to give me advice on how to avoid collection calls. These companies never teach you how to stay out of debt or how to manage your money.

Sign your mom up for Financial Peace University in your town. It is $129, she will learn how to manage and treat her money.

-Marie




iVillage Member
Registered: 07-06-2009
Thank you. I will forward this post to her.