Alot of you don't know this about me, but I have a serious issue with debt. I have alot of it, mostly from when I was younger. Today I was bored and looking around at various Debt Relief
options, and found Freedom Debt Relief
, which is a group who handles Debt Relief.
What they do is negotiate. What do I mean by this? From what I can glean on their site: They contact your creditors, and they negotiate a settlement on your behalf, dramtically reducing your payments and what you owe. Is this a good thing? Yes! If I had $40k in debt I might get it dropped to $20k. Thats over 50% of my debt gone thanks to these guys.
Basically the process works as thus:
1. You call them, or even email em, to get a consultation setup. They go through with you and figure out if they can help you, and apparently this takes as little as 10 minutes
2. They assist you in figuring out how much you can save each month towards paying off these debts, which will be placed in a bank account they help setup but you have control over. These amounts tend to be much less then what you would pay normally, which is always a good thing!
3. After you enroll, they start calling all the people you owe money to and then try to get them to call THEM rather then you. This means less "Hey you owe us money" calls. I hate those calls personally.
4. Once you have saved enough money they start trying to negotiate. Apparently the typical settlement they aim for is 50%.
5. After they pay off the creditor, you get a happy email saying Hey, we paid them for ya! They call it their Good News notification.
6. Finally, they contact the credit company to have them report that your account is now paid in full and in good standing, so to help your credit report.
They also have information on a few other debt relief options, such as Credit Counseling and Bankruptcy. Personally, after reading about Credit Counseling (they work for my creditors? Terrific!) I would personally not choose that. And Bankruptcy messes with your credit report badly. For example: If I had a bankruptcy claim on my credit report I might not have been allowed to join the College of Insurance program at work!
I honestly think that I am going to email these folks and see if they can help me with my student loans and other debt issues that I personally have. I would love to become debt free and I need some help in correcting it. I can't have debt forever ya know!