Debt Settlement company ads are something that I pay attention to on television. I listen to the noise of these companies because I witness first hand the harm they do to people in desperation. This one was hard to miss because of the messages. They know all the buzzwords to light up anyone in debt.
In this ad they claimed that they:
- Know what it’s like to be in you shoes;
- Understand the emotional burdens of debt, and
- Offer a 6 month money back guarantee.
They Know What It’s Like To Be In Your Shoes
Really? Think about it, they are a debt settlement corporation. They are on television. Probably satellite radio and the Internet as well. They have employees. Corporations don’t have to choose between a mortgage payment and filling the gas tank, or putting food on the table. Their only purpose is to separate you from your hard earned dollars for their own benefit. Is that what it is like being in your shoes?
They Understand the Emotional Burdens of Debt
No doubt that debt you can no longer afford to pay is an emotional burden. It is more than that. It is a heavy stone hanging around your neck. No client comes into my office who is not ashamed that he can no longer pay his accounts. They failed themselves, they failed their parents, and they failed society.
Not a week goes by that I don’t hear about a person faithfully paying for debt settlement, only to find out that a creditor who is not being paid has given up and sued them. If you get sued because they aren’t making payments for you is the stone around their neck any heavier? Your stone has become a noose!
Let’s look again at the debt settlement corporation. They aren’t failing anybody except maybe you. The only emotional burden of debt that I can guess they suffer is that maybe they are paying too much for their television advertising. Poor babies.
6 Month Money Back Guarantee
What is wrong with this picture? What could be better than money back guarantee? It is a marketing ploy pure and simple. Two things immediately come to mind.
You are in debt up to your eyeballs. You need help. You need the phone to stop ringing. You can just pay them instead of filing bankruptcy, and they will negotiate your bills down and make your payments. Now think hard a minute. If they are keeping your money tucked away for six months, what will they pay creditors with? If you guess nothing, that would be a good answer. That is six more months of no payments to your creditors even though you are paying sometimes many hundreds of dollars a month for debt settlement.
Second, in the debt settlement business six months is nothing. Clients normally don’t begin to suspect, or figure out that it is not working for over a year. One year is normally how long it takes for the lawsuits to start, even if you have paid them faithfully each and every month. That is what happened to a recent client. Last year they paid over $5,000 to a debt settlement company, including $3,000 up front for fees. Now three different creditors are suing them. A bankruptcy for their situation from start to finish will cost less than $2,000. Debt settlement sounds better than bankruptcy doesn’t it?
Other Attorneys playing the bankruptcy alphabet game are:
- Marin County Bankruptcy Attorney, Catherine Eranthe says K is for 401k..
- Northern California Bankruptcy Lawyer, Cathy Moran writes K is for Keep.
- Taylor, Michigan Bankruptcy Attorney, Christopher McAvoy claims K is for Keep Your Retirement Accounts.
- Hawaii Bankruptcy Lawyer, Stuart T. Ing says K is for Keeping Secured Loans.
- Dorota Trzeciecka Bankruptcy Blog has an article K is for Keeping your business.
- My friend, New York Bankruptcy Lawyer, Jay S. Fleischman claims K is for Keys.
- Colorado Springs Bankruptcy Attorney Bob Doig claims K is for Kids.
- Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell says K is for Knowledge.
- Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein writes the K is for knowledge as well.