The Link Freedom Debt Relief.
I know this is way off topic, but I found it very interesting, and worthy of sharing. The company is called Freedom Debt Relief and they help people reduce their outstanding non asset debts like credit cards, lines of credit, etc.. They don’t do anything dealing with an asset involved, like mortgages or car loans. What caught my attention was a page on their site that shows actual results of some of their work. Here’s that link: Top Debt Settlements.
It looks like, on average, they settle between 10% & 20% of your outstanding debt. Here’s how it works.
>Work out an amount you’d like to spend monthly to get your balances down and they set up an account that that money is sent to every month.
>They call the credit companies and “attempt” to handle all future communication with the creditors. (which could be a relief if your getting hounded)
>The money in the account accrues for a couple months and they will contact your creditors individually and try to negotiate a lesser balance. The website says the target is 50% of what your current outstanding debt is. (I’m assuming it’s in a short term interest bearing account that they keep the interest :))
>They reach a settlement, pay off the creditors and you get a “good news” message 🙂
>The creditors will call the credit bureau and report that your accounts are “settled in full,” “settled,” “paid,” or “settled for less than the full amount.”
>Your Debt Free.
I don’t know what the fee for this service is, but it’s taken out monthly from your saving account they’ve created.
What shocks me is that this actually works. I don’t see how a company would just reduce the debt owed because a third party calls and asks them too. What’s the convincing leverage? Is it that they’re negotiating with a lump sum of cash that can be paid immediately, which they will then use for other loans? Is it from a threating perspective of do this or there’s a good chance you’ll get nothing? Seems unlikely to me. It’s mind boggling, and you’d think that we could do this ourselves, but I guess coming from the receiving end of the prodding doesn’t hold as much weight…
Leave your comments!