Posted on September 17, 2009 at 1:45 am Hello - can you guys give a review of the debt elimination programs available out there? Also, can you give special attention to theh scam ones? Thank you, more power! - Kenny

Posted on September 17, 2009 at 1:54 am Hey -Debt elimination or reduction programs come in several forms, some are for profit and some non-profit. These debt elimination programs usually target consumers with unsecured debts. The debt elimination (programs) industry is relatively young so it is susceptible to errors and scams. It's also not yet regulated although there are associations and governing bodies that try to address the industry's issues.In my opinion, the industry itself is very helpful to the consumers, but like any other industries, it has its faults.

Posted on September 17, 2009 at 2:16 am Debt elimination programs (unsecured debts):Credit Counseling (Debt Management Plan, DMP) - supposed to be non-profit but charges $25/mo. after the one time set up fee for their Debt Management Plan. High drop out rate as it lasts for 5 years.Debt Settlement - debt settlement companies would charge 15% of your total debt amount -spread over 18 months or they will take between 20-25% of the settlement amount. Claims to lower the consumer's balance by 30-70% The program lasts from 12-36 months.

Posted on September 17, 2009 at 2:38 am Other debt elimination programs:Mortgage ReductionReverse MortgagesDebt Consolidation LoanBankruptcy

Posted on September 17, 2009 at 2:54 am "Debt elimination programs...Also, can you give special attention to theh scam ones?"The Federal Trade Commission acts acts as the police in this debt elimination programs/companies versus the consumers (http://www.ftc.gov/bcp/index.shtml)Consumers can also contact the attorney general for debt elimination programs issues.

Posted on September 17, 2009 at 2:57 am Just to add to the Chairman's notes:Here are the debt elimination (debt settlement companies) programs that were under investigation by the Attorney General’s office of the State of New York, over allegations of consumer deception and poor services:Allegro Law LLC, Huntington, N.Y.American Debt Foundations, Ft. Lauderdale, Fla.American Financial Services, Bakersfield, Calif, Consumer Debt Solutions, Coral Gables, Fla.Credit Answers LLC, Plano, TexasCredit Solutions of America, Inc., Addison, TexasDebtamerica Relief, Santa Ana, Calif.Debt Remedy Solutions LLC, Boca Raton, Fla.DMB Financial LLC, Beverly, Mass.Debt Settlement America, Dallas, TexasDebt Settlement USA, Scottsdale, Ariz.Freedom Debt Relief, San Mateo, Calif.Nationwide Asset Services, Inc., Phoenix, Ariz.New Era Debt Solutions, Camarillo, Calif.New Horizons Debt Relief, Aliso Viejo, Calif.Preferred Financial Serices, Andover, Mass.US Financial Management, San Diego.

Posted on September 17, 2009 at 2:58 am How to weed out bad debt elimination programs?

Posted on September 17, 2009 at 3:36 am The consumer has to know the following when it comes to debt settlement companies/programs (as a debt elimination option):-The settlement company's program must have a fast completion time. 12-36 months.-The program must be able to protect and improve the consumer's credit standing.-Must be a member of the Better Business Bureau, BBB, for at least 5 years.-Must also have a good standing with the Chamber of Commerce-A Member of TASC - The Association Of Settlement Companies and the IAPDA or the International Association of Professional Debt Arbitrators

Posted on September 17, 2009 at 3:38 am Just to add to what peterpanamerican's, here's where to find them:the Better Business Bureau (BBB www.bbb.org), TASC www.tascsite.orgUSOBA www.usoba.orgIAPDA www.iapda.org

Posted on September 17, 2009 at 3:44 am Debt elimination programs: Credit CounselingThe DMP's goal is to lower the interest rates so the accounts can be paid off  faster.DMPs usually last 5 years- the consumer makes monthly payments to the credit counseling agency so it could disperse the funds to each of the creditors--the problem with the DMP is that a lot of creditors do not work with credit counseling agencies, so many consumers find themselves paying a monthly fee to the agency and not the creditors.