“Debt management programs suck!” Jasmine Carter of Boise, Idaho, tried debt management after seeing repeated pitch ads on TV. “I got suckered by their ads. Everything sounded so good…until I got involved with them,” says Carter.
Jasmine did not get the help she expected.
When she received a summons to appear in court, the debt management company showed its true colors. As a “benefit” of enrollment in the debt management program, Jasmine had access to an attorney.
The attorney (through the debt management program) recommended Jasmine appear in court and tell the judge she could not afford to pay the monthly payment.
Strangely, that did not make sense to Jasmine.
If she couldn’t afford to be in a debt management program, why did her “credit counselor” take her money?
Jasmine had no idea what she should do.
I am NOT an attorney and I’m not trying to dispense legal advice. I hear these same complaints every day from people in all parts of the country, not just in Idaho and not just about debt management programs.
Consumer credit counseling also is not what people think.
Click READ MORE below to get the rest of Jasmine’s debt management experience.
HOW JASMINE GETS ‘SUCKER PUNCHED’ BY DEBT MANAGEMENT PROGRAM!
A creditor is suing Jasmine.
Jasmine has received a Summons to appear in court.
NOTE: If you fail to respond to the Summons and choose not appear in court, the judge will record a default judgment against you.
That’s bad.
Jasmine wanted to know if she should hire an attorney. By itself, that question is not easy to answer. You see, Jasmine could be wasting money by hiring an attorney who stands up to tell the judge, “Yes, my client owes the money.”
However, this approach could buy Jasmine more time and allow herto build up enough money to settle the claim.
At the time, Jasmine had no clue she was facing one of the most common complaints I hear about debt management programs. When a creditor refuses to work with the debt management company, the borrower is put into an impossible position:
- Try to pay the debt management company;
- Try to settle this lawsuit before wage garnishments or bank levies occur.
Unfortunately, the failure of these programs to actually handle the lawsuit means that many people cannot afford to continue paying the debt management company on top of paying a judgment.
The result usually means more business for bankruptcy attorneys because the lender with the judgment might garnish wages or levy a bank accounnt.
Of course, Jasmine discovered one other disappointing reality about debt management programs: her credit scores dropped even lower. The notation on her reports revealed to the world she had enrolled in a debt management program.
Debt management did not work for Jasmine–she could NOT afford the payment. It was that simple.
If you are considering debt management, two considerations before you fork out money:
1) You are able to deal with all your creditors inside the program, allowing you time to build up the money to pay the accounts;
2) You actually can afford the payment and are not just hoping to avoid bankruptcy.
When the numbers don’t work, some debt management companies actually do what’s right: they will not take your money. Unfortunately, the company Jasmine hired took her money.
Debt management companies hit you with fees; they make promises they might not be able to back up; and generally they destroy your already-low credit by “managing your debt.” If you’re considering debt management, weight carefully the benefits versus the reality. Ask lots of questions–what will they do specifically for you? Jasmine regrets the experience.
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