Tuesday, March 24, 2015, AM | Leave Comment
Millions of Americans are forced into a situation where the banks and the debt collectors keep ringing their phone, some 40 or 50 times a day.
Since the financial crisis began and folks in debt started to get disillusioned and are “bugged” by these institutions, the business for blocking these calls is booming.
One such company for blocking the callers is JF Technical Developing Co. It would help you block unwanted phone calls.
But in reality, blocking certain callers about your debt is not the answer. The answer is you need a company that will negotiate with creditors on your behalf to reduce the burden of debt on your shoulders so that your monthly payment is reduced and you pay off your debt a lot sooner.
Remember! The creditors feel that if they bug long enough, debtors will finally succumb to their annoying behavior and will pay off their debt. But most debtors are not able to reduce their debt by themselves. They need help.
Countless are worn down
Countless are worn down by the debt collectors’ warnings about bankruptcy, and how it would ruin their credit score.
They keep paying the minimum due and hope for the best. But the hope seldom materializes into job or another genuine funding source. Meanwhile, the unpaid balance keeps ballooning.
The problem with just paying the minimum every month is that the lender avoids charging off the account as a loss, which would be required if it became more than 180 days past-due.
So they keep sending you bills every month, you keep paying the minimum, the debt keeps ballooning and to add to the misery, you keep spending.
Like I said, in a situation like that, you need help. But what do you do? Because of the overwhelming bombardment of advertisements in media, you fall for the traps set by one of the 2,000 or more debt-relief companies that have come to life since the financial crisis.
However, in spite of the new law
Despite the new law limiting the practice, many such firms still charge hefty upfront fees worth 15% to 20%, based not on the savings delivered but on the total unpaid amount outstanding.
The companies don’t start negotiating with creditors until the debtor has accumulated sufficient funds in an escrow account.
If you are in debt and are unable to manage pay it off in your lifetime, there are genuine debt settlement and management companies such as Consumer Recovery Network (CRN), which teaches people to self-manage the wrenching debt settlement process. CRN is one of the very few companies that don’t follow the financial blood suckers’ model.
CRN gets up to 15% fee of the amount the debtors save. And most probably, that’s what debtors would want. So if you save $50,000, CRN gets $7,500. If you save nothing for some reason, CRN should get nothing.
CRN would send you a set of Compact Disks (CD) and instruction manuals and not much more. Of course, you would have to pay for the material they send you.
So if you can do it yourself with the help of the CDs and the instruction manuals and can reduce the debt to a more manageable monthly payments, then you pay only for the material.
Those who do want the firm to negotiate on their behalf pay 15% of the amount saved.
In a Nutshell
The CRN model seems like a much better approach for both creditors and debtors than one in which available funds are siphoned off to third parties in up-front fees.
The media have written favorable articles about CRN which you can read in Wall Street Journal, The Washington Times, Daily Finance, Chicago Tribune, Fox Business, USA TODAY, MSN Money Central, and others.Facebook.com/doable.finance