I don't understand this level of ignorance. If you call the creditor and offer to completely pay the debt, why would the creditor get aggressive? Once you pay you're done. It's simple logic.
Also, who cares if they do? Who cares if they scream and cry and swear on the phone as long as they offer you your deal by the end of the call? What a weird dude.
@@saulgoodman2018 No they didn't. They negotiated a lower settlement on his accounts with the creditors and they now act as a middleman for payments. Instead of paying each of his creditors individually, he sends one check to the debt-reduction company, they take their cut and then dole the rest out to his creditors on his behalf.
@@saulgoodman2018 I don't know of a single debt consolidation company that actually pays off your debt. That's an INSANE amount of money and a huge amount of risk to take on. That would be a ridiculous business model to pay off your debts when they know you can't. And what happens when you stop paying them? Nothing. They're not getting money from you so they're not sending money to your creditors. That's on you, not them.
Look at the fee they're charging you on each payment to provide that service. You can cancel the autopay, remove them from the picture, and now pay each creditor the agreed-on reduced amount the debt consolidation company negotiated for you. You paid the debt consolidation company a fee up front, they provided the service you paid them for (negotiating the settlement). Now you can avoid having them skim off the top every month by handling the payments yourself to each creditor.
@@AllynHin Yeah I gotta give it a little while though cause I just started a 2nd job to start making more money. Word to the wise don't gamble my friends
This man sounds like he would give someone his wallet if the guy said, "Excuse me, I am a wallet inspector and need to inspect your wallet to see if it is in compliance."
The caller need to grow some balls, really that simple. I don't know if the caller is serious or he's trolling the phone call. The debt is in collections regardless... The caller can negotiate and call it a day.
@@TR-lh9yz No, just because you are married doesn’t mean it’s his house too. He paid off her house. If his name is not on the title, it’s not his house.
I know. He sounds like a complete sucker. I don’t even blame the debt company, because they’re just offering a service. And this guy doesn’t really have a good reason of needing to hire them now. I mean he’s got the money to pay his debt, and he’s able to negotiate
Also, is the law going to look at the wife’s house being paid off by him, is it going to see that as her property only if they divorced? Or would they split her house up? It’s kind of suspect that he sold his house and put all his money into hers. She might be screwing him too.. lol
He honestly might not know if the original creditor still owns the loan or if his responsibility has somehow shifted to the debt consolidation company once he signed up with them. That seems most likely based on his follow-up questions to Dave. Seems like he just lacks full understanding.
He thinks he is under contract to the consolidation company and doesn’t want to get sued for the difference. He isn’t hesitant to pay the debt. He is scared that paying it with void his contract and still have to pay the fees.
It never ceases to amaze me the absolutely convoluted financial "services" that exist out there. Half of this stuff I never even knew existed before I started listening to these Ramsey videos.
This guy is just really confused. He's in a position many people would love to be in. He has enough money to kick these people out of his life and at a discount and he just doesn't understand how it all works.
im always amazed how Americans cant seem to get enough of placing themselves in more debt. "I have six figure debt so let me go out and get married, have kids and buy a home, that will help me with my debt"
Having been in similar situations, and gone through it... Listen to what Dave is saying, trust me. These companies have THOUSANDS of these collections, etc on record, call centers making one call after another. They do... not... care! They want money, and the reps just want a win. Offer them (the collector not the people who made a plan for you) a deal, for example, if you owe $5k, say i can give you 900 today if you can give me in writing this is paid in full. If not, the $900 is going to someone else.
I was surprised as well.. but it makes sense.. listen to him, he's a married man but he sounds like a boy, a good boy. He needs to man up and be a little more aggressive..
I think the caller is afraid if he stops paying the debt-reduction company that the barrage of collection calls will resume. He doesn't understand that the debt collection company is taking the money he pays them, takes their cut and then doles the rest out on his behalf to his creditors. He even said in the call that his creditors haven't gotten anything from him in a long time. He is mistaken. He thinks he owes the money to the debt-reduction company.
Nothing poor about him.. gullible...yes..stupid...lol..time will tell. But chances are higher now a days versus in the 1950s and 1960s that he might not be married to her for life
He's having trouble understanding that if you say you can pay and want a deal, the COMPANIES whom you owe money to wouldn't sell it to collectors because when they do that, they sell debt for like pennies on the dollar (Could be 50c per dollar, could be 65-70) which is why they can settle with you. They haven't sold your debt and as long as you aren't being ridiculous with asking to settle, they'd rather deal with you than sell your "owed money account" to collectors at a fraction of the value.
I understand his dilemma. If I'm under CONTRACT with this debt assistance company, and I don't see this contract through to its end...per the contract, than I'm putting myself in harms way if they decide to pursue this in court. No?
You don't know what the caller signed. Being that these "debt relief" companies are scumbags, I would expect them to put something in a contract that could penalize him for going outside of the arrangement. If it is illegal for the debt consolidation company to penalize him, then that would useful info that Dave would have mentioned, but it wasn't. I'm still on the side of what Dave said but not the side of internet experts who sit on their high horses and think they know it all, yet don't understand what a contract is.
No, if he does as Dave says and get in writing all,when the debt is paid the assistance company "services" are not longer required or needed, sure they can sue but there is no case there, they will end losing and paying attorney fees, if public backslash doesnt make them to let it go before.
@@sgg17003 that's exactly what i was thinking!!! I had to search through so many dumb comments to find someone who knows what they're talking about. Dave is out of touch. Period.
He thinks he owes the money to the debt-reduction company, so it confused him when Dave said to stop paying them and go straight to the creditors. He thinks the debt-reduction company will come after him if he does that. He doesn't realize the debt company is just the middle-man skimming their fee off his payment every month before they dole out what's left to his creditors.
I'm surprised that Dave didn't warn this guy to make sure that the creditors include in their offer to settle letter to him that they all include their promise to not send him a 1099 for the amount that they relieved him of. For example, If he owes them 30 grand, and they settle for 20 grand, once he pays them, the following January, they WILL send a 1099 for the 10 grand they discounted off the debt, and he will have to declare the 10 grand on his federal return as income, and pay taxes on it. The key is to make the creditor declare in their offer letter that they will not claim the loss of the 10 grand.
This guy doesn’t sound too bright. He’s very naive or maybe a troll. He also got married and paid off his Wife‘S house. I hope he live in a state that won’t burn him if… I mean, when he gets divorced.
Oof. Please do not marry and start a life with someone before you learn how to manage finances 🤦♀️ He couldn’t have asked these things 10 days ago and postpone the marriage at least a few weeks until he figured it out?
Treating people right does not necessarily mean kindness and respect. If debt collectors are harrassing you and giving you scare tactics and you respond with fuck off then do not disturb mode, you are treating them right and putting them on ignore is the way to get them to treat you right.
Dave is missing the part where he has a contract with the debt consolidation company. I have no idea what the contract is, but you just can't ignore its existence. Sure he can pay off the creditors; that's not the issue. The issue is that he may owe money to the debt consolidation company. Maybe the contract commits him to pay a certain amount regardless of whether he pays the underlying debt directly, maybe not, but that has to be accounted for.
These types of contracts are usually null and void when payment stops being made. More then likely he is dealing with a debt settlement company. He is able to cancel at any time with any or no reason. They have an account for the payments he’s made that he is legally able to take back when he pulls from the program. He does not owe this company anything. Their fee was 85% of his first 18 payments. He actually already overpaid them
@@barnabusdoyle4930 That's interesting, but he did say the creditors stopped calling once entering into the contract. Wouldn't they stop calling due to getting payments from the consolidation company? I too thought you can't just stop paying after entering a contract but these types of arrangements have never appeared trustworthy IMO.
Paying the creditors versus th debt consolidation company is pointless at this point. The Debt consolidation company ALREADY bought the debt That's what Dave forgot here, and Dave is told.this guy NOT to pay the debt consolidation company?? (Facepalm) Dave...your attention span wasn't on point here. Let your son handle your calls for a while if needs be ok.
@@Divine_Beauty-uh9xi The creditors stopping calling him because the debt consolidation company negotiated a lower settlement with his creditors on his behalf and is now acting as the middleman for his payments. Instead of paying each creditor individually, he sends one check to the debt consol people, they take their cut and then dole the rest out to his creditors on his behalf.
I’d be extremely careful in just stopping payments to the consolidation company. Check all the documentation you have with it, and be sure to read any fine print. It’s actually possible you signed something that indebts you to the consolidation company.
Dumb question is not a personal check giving them electronic access to your account. Your check has your name, your address, bank name, account number, routing number
What have we become where’s he’s afraid of actually having to pay what HE BORROWED WILLINGLY. It’s insane. Stop trying to twist the system. You’re morally obligated to pay the debt just ask what you owe and pay it. My goodness
This guy is definitely a tech guy! I can almost hear his math and computer skills And that's his problem! He should be more. He should take his head out of those papers and actually observe his environment unless he's into some fetish of getting robbed regularly
Makes me so angry that companies think nothing of screwing ppl like this who don't know any better. I'm glad he called in to this show to get advice. He's not as dumb as some of these comments are making him out to be. He gets my respect for getting a second opinion instead of blindly following.
The debt companies just stop paying your debts. You can do that without them. They can still sue you for the debt. The tough thing is breaking ties with the debt agency.
His creditors may now include collection agencies instead of the original company. If the original company sells your debt to a collection agency, they have written off your account and are done with you now. Collection agencies are the ones that buy debt at pennies-on-the-dollar. Debt consolidation doesn't pay anything off. They negotiated a lower settlement on his accounts with the creditors and they now act as a middleman for payments. Instead of paying each of his creditors individually, he sends one check to the debt-consolidation company, they take their cut and then dole the rest out to his creditors on his behalf. If he just stops paying the debt-consolidation company and contacts each creditor, he can negotiate a final settlement with each of them individually.
I think the issue the guy was having was not about ending the relationship with the debt consolidation company, but ending it by just no longer paying them. He thought, as would I, that he should call them up and tell them he wanted to cancel the contract. You can also cancel your cable subscription by just no longer paying the cable company. They will shut off your cable. But if you want to avoid them calling you, you can just call them and tell them you want to cancel your subscription.
Amazing how many grown people don’t understand debt, creditors, collections, etc. But, they’re the ones with all the debt. Just goes to show how sad our country is in educating its people about personal finance.
Of course they tell you that up front. They want to bully you into paying the full amount. if you let them stew long enough and the account goes to collection, those weasels will negotiate.
So ridiculous he says not to give them access to your checking account. They will never steal any of your money. That's a lie irresponsible people tell to excuse their bad behavior.
Because his original debt was sold to another company for much less (the balance written off as bad debt by the original company). The new company holds the debt at a much reduced rate (he owes much less now).
@@jeanine6492 but as long as the balance is not greater than the original balance, he should be ok with paying. Debt collection is a business just like any other....if the grocery store can send us eggs for more than they bought it for.....it is ok for the debt collector to close the debt for more than they bought it for.....as long as it isn't more than the original debt.
Seems like if they original company still owns the debt, you could just pay them what you owe*. If it's a debt collector, definitely put some effort into getting them to accept a partial payment. You might also make it a point to actually READ the contract you've got with the debt consolidation company, and see what if anything they can do to you if you ghost them. If they have access to your bank account, fix that first. *Unless for some reason you think that they were somehow abusive to you, first.
In all fairness, the debt relief company I used was pretty straightforward. When I sold my house and was ready to settle my debt. I told them that and they took care of the rest. I paid the agreed amount to the debt relief company , which was less than what I owed. A month or so later, everything was paid off and it’s was all good.
The guy owes the money and he should pay it off. Is it not a bit sketchy for him to ask for a deal if he has the money to pay it off. Write offs effect others in the world