The company that now owns debt free America has a new website and approach to presenting their debt management model to the public. Before looking at their framework, though, let’s look at who can best utilize a service like this.
Debt management companies are a valuable resource which can help eliminate collection attempts by creditors, reduce or stabilize payments and interest rates on credit cards, write letters to creditors and credit reporting agencies, and generally help clients pay off runaway debt faster. In return for their services, these companies charge a fee, usually an upfront ‘processing’ fee, as well as a monthly amount on top of the payments going to debtors.
If a person has manageable debt, for instance one, two or three credit cards and a car payment, paying a debt assistance company to help may not be necessary. Making the necessary phone calls regarding these debts over the course of a week may be enough to stop collection efforts and negotiate better terms, or obtain more time to come up with a payment.
When serious interest and late fees begin to stack up on all credit cards and the auto loan company is threatening to repossess the vehicle, the situation can get out of control quickly. Collection efforts can cause stress at home and in the workplace, and if they have moved to third party collection agencies, keeping track of it all can be confusing. This is when a professional service should be invited in to help, but not before their service record is thoroughly researched.
The debt free america scam many customers complained about may have just been bad management and poor customer service. It is easy to find complaints, which mainly cite a lack of timely communications with customers, often resulting in missed payments to creditors. The company has since been acquired by a third party according to the ‘new’ debt free america website, and is still focused on helping people get out of debt, and live the ‘cash flow lifestyle,’ for good.
It is difficult to gather much information without making a phone call however, which is fair enough considering each situation is different. Unfortunately, they do not outline their process in detail except to show four steps related to financial freedom, which takes up the bulk of the website.
Before enlisting professional assistance, people with excessive debt can contact creditors on their own, setting up a chart to outline their debts in detail. Write down amounts owed, minimum payments and interest rates. As each debt is paid off, add the amount being paid to the minimum payment of the next debt, until each has a zero balance.
Even when debts are already in collection it is possible for the individual debtor to negotiate better terms; and receiving offers to settle a debt for as low as forty cents of the dollar is not uncommon.
There are more complicated methods, but this way is easy to follow and remember, and will put a person on the path to what debt free america calls the ‘cash flow concept to lifestyle,’ much faster.
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