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Puzzle. How to reduce credit card balance?

tccox
It appeaers the new industry is to make your CC balance disappear in months and save you thousands. We all know they are in business to make money and they are owned by CC companies and they are NOT non profit. How do they run this scam?

It must be very big business or they could not afford the many TV ads they run. Have any of you had any experience with these sharks and what is the outcome?

No, I am not trying to reduce a blalance. I use debit card only. I am just curious. Tom

PS As aside: Say you owe a bank 10K and they forgive it. The IRS considers that income and can/will charge you income tax on it!! T
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Comments

14 comments

Date Votes
  • Colt Super
    I think this just goes to indicate how much the cc companies are really making, and that if they can get you to pay the new amount, they are still money(profit) ahead.

    After you are charged off as a bad debt, anything they recover from you is 100 percent profit on their P&L.

    Sig232 would know more about this.

    Doug
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  • tccox
    Doug, I am not talking about the account which are charged off and sold to a collection agency. I am talking about the people who "are just making minimum payments", like poor old Maya who just could not get ahead until they worked out a payment plan for her. Tom
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  • Colt Super
    The account can be charged off and retained by the originating company.

    How is Maya doing with the program she(y'all) set up ??

    Is it going to work out ??

    Doug
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  • 11BravoCrunchie
    Easy way. Don't charge more than you can afford to pay for in a month.
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  • 11b6r
    Believe the TV ads- and believe that a Nigerian banker wants to give you $15 mill. There have been a number of the credit aisstance companies that have taken payments from the suckers, took the money and ran.
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  • FrancF
    quote:How do they run this scam?
    For a fee, bargain for a lower interest rate with the lender. Most can do that without the middle man.

    quote:Say you owe a bank 10K and they forgive it. The IRS considers that income and can/will charge you income tax on it!! T

    Gray area-
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  • competentone
    quote:Originally posted by tccox
    It appeaers the new industry is to make your CC balance disappear in months and save you thousands. We all know they are in business to make money and they are owned by CC companies and they are NOT non profit. How do they run this scam?

    It must be very big business or they could not afford the many TV ads they run. Have any of you had any experience with these sharks and what is the outcome?


    I believe what you are seeing is ads by firms that take actions to completely destroy your credit rating then make an offer to the card companies of a settlement below what you owe.

    You end up paying less than what you owe, but have no credit afterward!
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  • Da-Tank
    I tried that route. 1st mo. 3 bills didn't get paid. 2nd mo 2 of the same companys didn't get paid. Called them and they told me to send in more money and they would get it caught up.
    Well by the contract I had 90 days to terminate the contract or go all the way. Bills were due on the 3rd of the mo. I wrote terminating the contract, with delivery sign for. I also went to the bank and put a stop on them. They called me the next mo. and said I owed them twice what it should be. I told them "Lets go to court."
    Took me 3 mos. to straighten up my credit, except 2 companys who still thing they are being paid by this co. YES it's a scam!!!!!!!!!!
    and a rip off!!!!!!!![xx(][xx(]
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  • SahaganBeta
    I believe, in Maya's case, and from reading the small print (real fast, as it doesn't stay on the screen long) that the advertiser is a 'referencing company'. That is, for a suitable fee, they will refer you to another company (s), who will then negotiate with your creditors in order to lessen your debt and set up some kind of repayment program.

    One sign of maturity is the ability to see a thing much wanted, and put it off until the money is saved. Just a quick look at interest rates charged by credit card companies and finance companies (anyone but genuine banks in most cases) is enough to give you a serious case of sticker shock.

    Sahagan
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  • PanzerSlayer2
    When bad debt is charged off by a company it is written off to a special account for bed debt. If any money is recovered it is reversed off the account for bed debt. It is not considered 100% profit.
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  • Colt Super
    It must be different from state-to-state or company-to-company.

    I have been a corporate participant in these matters.

    Doug
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  • PanzerSlayer2
    Shouldn't be. It's a GAP. Your Sarbanes Oxley procedures are out of whack if you don't do it that way.
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  • mond
    quote:Originally posted by Zulu7
    Easy way. Don't charge more than you can afford to pay for in a month.


    easier still.........dont have one!! if ya cannot afford ,do with out until ya can!![;)]
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  • tccox
    DATank, Please furnish more info. You seem to have first hand knowlege of how they operate. I know they are a scam and wonder why in the world the authorities let them operate. Thanks, Tom

    PS Why in the world did you go to them in the first place???
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