Recently, I met with a client who was feeling upset and disillusioned with the so-called debt relief services being provided by one well-known company. I'm sure you have seen the commercials and received junk mail from similar services that promise relief from your cumbersome debt by paying them a fraction of what you owe.
They claim you will only pay pennies on the dollar for money that you owe credit card companies or other entities. As the old saying goes, if it sounds too good to be true, it usually is. In the case of the client who came for a free consultation about his financial situation, it seems the debt relief company promised him that, with 42 payments a bit over $300, he would be free of his $20,000 in charge cards.
Situation Made Worse
The proposal from the debt relief agency sounded good, but it wasn't truthful. The problem was that after 42 months, and over $13,000 paid, there was no end in sight for his monthly payments. It looks as if he might end up paying over $17,000 by the time he is done and with no guarantees that all of the debt will be paid for.
To make matters worse, the company didn’t tell him that he is responsible for federal income taxes for the amount of money he “saved”. This was considered income. The client may have saved little, if anything at all, and still doesn’t have a guarantee that all of the companies are satisfied, despite his asking his out-of-state agency for proof.
I've had a number of clients come to Steidl & Steinberg after using this debt relief company and after they were sued by their creditors. Good deal, right?
Don’t rely on the representation of companies where you never meet the people who are handling your debt. Schedule a consultation with Steidl & Steinberg to get some real alternatives. We will give you answers without making empty promises.