Dear Reader,
Last summer the Boston Globe ran a four part series on credit card debt.
One of the things they brought up was the ridiculously low price the collection agencies pay for debt. As low as 2.5¢ on the dollar.
But, if you read the ads from the consolidation companies, they only offer to get your debt reduced by up to 50 – 65 percent, max.
Why is it that the banks will discount your account as much as 97.5¢ on the dollar to a corporation but if you want to repay it – they will only discount it 40 – 50¢ on the dollar?
Could it be that this is as low as the consolidation companies are willing to go? After all, they get paid based on what you pay. The more you pay, the more they make.
Maybe these debt consolidation companies aren’t really representing you. Maybe they work for the banks?