Ridiculous! That was our first thought when reading the title of this press release from TASC (The Association of Settlement Companies), an organization that “serves to protect consumers through an organization seal that represents best practices and standards of reputable companies”.
The press release was TASC’s response to an ABC News Report that was aired on July 20, which purportedly shared some “success” stories in which consumers were able to negotiate and settle their credit card debt without the assistance of a debt settlement company.
A snip-it from the press release:
TASC, which seeks to protect consumers, does not want those struggling with similar unsecured debt to be misled into thinking that the method of debt settlement presented in the report is typical, practical or, in many cases, successful.
“We are always on the side of success, but generally it’s actually quite difficult for individuals to settle debt with multiple creditors since each creditor is only interested in collecting the individual debt owed to them,” Chris Kesterson, President of TASC, said. “We want the consumers to come out of this process in better financial shape, not worse.”
Certainly makes you wonder exactly how desperate this organization is to justify their existence. While there is a place for their services for certain individuals (read this blog post to learn how to select a debt settlement company if you are one of these individuals) the creditinfocenter.com website has been advocating to readers for years that this is a process that you can do yourself for little or no money.
In fact, the current economic times seem to be improving the odds that you will be successful with debt negotiation and settlement offers. A recent article in msn.money, aptly titled “Credit Card Issuers Ready to Deal”, reports that banks are negotiating with debtors on a more frequent basis, and in some cases, they’re willing to take substantially less than what is owed. The rate of charge-offs in the banking industry is on track to more than double from the 2.1% recorded in 2008, with expectations that it will reach 5.2% by year’s end.
Frankly, it seems like the ideal time to throw your hat into the debt settlement or negotiation ring if you find yourself unable to handle your credit card debt. Particularly if your hardship is due to unemployment, or other verifiable “justifiable” means, your creditors just may be willing to work out a deal that is win-win for each of you. It is certainly worth a try – don’t you agree, readers?
no comment untill now