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Debt Settlement Advisor Warns Consumers Against Bogus Debt Elimination Programs
San Diego, CA (PRWEB) August 25, 2006
Consumers are falling victim to numerous debt elimination scams on a nationwide basis as they attempt to avoid bankruptcy through alternative solutions, according to Charles J. Phelan, an industry expert who coaches consumers on how to negotiate effectively with their creditors to resolve burdensome debt.
As American consumers seek solutions to their growing debt problems in ever greater numbers, and with bankruptcy more difficult to qualify for, debt elimination scams have flourished on the Internet and through multi-level marketing programs. Promoters of such schemes claim to have special methods or secret techniques for eliminating debts based on obscure financial theories and tricky legal maneuvers. Consumers are paying $ 5,000 or more in fees on the promise that their debts will be “erased” with no need for further payment.
Charles J. Phelan, President of ZipDebt.com, frequently hears from consumers who have been victimized by such schemes. “Most of these debt elimination scams rely on the false argument that credit card banks are operating in violation of banking regulations,” Phelan says. “These con artists trick people into thinking they didn’t really borrow any money when they used their credit cards. It’s total nonsense of course, but the sales pitch can be pretty convincing to a consumer who’s drowning in debt.”
Phelan says the major credit card banks have long since caught on to this scheme, and debtors who try to apply these illegitimate techniques often end up in court defending themselves against creditor lawsuits. For people who are unable to keep up with their debt payments but still hope to avoid bankruptcy, Phelan recommends consumers skip the expensive debt services in favor of direct negotiation with their creditors. “Unlike these bogus debt elimination programs,” Phelan says, “debt negotiation and settlement is a legitimate technique for reaching a compromise solution with your creditors. However, it’s best to do this yourself so you have complete control over the process.”
For additional information on do-it-yourself debt settlement, free resource articles are available at http://www.zipdebt.com. A free 32-page consumer report is also available for immediate download.
About ZipDebt.com
Charles J. Phelan has been helping consumers avoid bankruptcy since 1997. A former executive with one of the nation’s largest debt settlement firms, Phelan launched ZipDebt.com to provide an affordable alternative to professional debt services. ZipDebt.com’s audio-CD training course is supported with personal one-on-one consultation and follow-up coaching, and the program successfully helps debt-challenged consumers achieve professional results for a small fraction of the usual cost.
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