Potentially damaging rumors are spreading across the country that there is an Obama or government run national debt settlement program that will wipe away a debtor's bills. The truth is that no such program exists and it is just another one of the lies many unscrupulous debt settlement companies are using to swindle debtors out of their hard earned cash. Please don't fall for this lie.
Below are five more lies that debt settlement companies use to get your money:
- Debt settlement companies often "guarantee" that they can settle your debts for pennies on the dollar. This is just another falsehood. There is no guarantee that a debt settlement company will even be able to come to the negotiating table with your creditors let alone settle your debts for less than what you owe. A matter of fact, some creditors are now refusing to even deal with debt settlement companies and will only deal with the debtor directly.
- Debt settlement companies often claim that they can stop creditor calls and collection efforts. The truth is that debt settlement companies have no power to stop creditors from doing what they have a right to legally do-pursue debtors for payment. Only bankruptcy can legally stop creditors from pursuing a debtor.
- Debt settlement companies often ask debtors to stop paying their debts. What they don't tell the debtors is that once they stop paying their debts the collection process will continue and they could be facing lawsuits, wage garnishments and asset seizures eventually. Even if the debt settlement company begins negotiations with the creditor they cannot stop them from suing the debtor and winning.