What the Debt Settlement companies DON’T SAY

I have received a lot of responses concerning the debt settlement blogs I have written which surprised me a bit. It was nice to hear people thanking me for the detailed information and tell me how it helped them understand more.

With all of the conversations I have had I noticed a few things that seem to be a pattern and I wanted to go into a little more detail on it for everyone.

While the below will apply to any company regarding debt settlement after these conversations this specifically applies to National Debt Relief, Credit Associates and Freedom Debt Relief as these were the three main companies people inquired about.

What I have noticed is a lack of transparency and only telling you half-truths or not the full story.

Now is that because they are doing it on purpose because let’s face it, whatever their “title” is they tell you at the end of the day they are there to get you signed up so they are sales people. While there is NOTHING wrong with that the behind the scene issues is what can get you.

If you remember the recent Wells Fargo scandal with employees signing people up for credit cards and lines of credit without their consent there were financial incentives when employees meet certain goals.

So one of the things people have a great concern when calling these companies looking for relief is their credit score. A good majority of people I have talked to do not necessarily have credit problems or really need credit repair, it’s just that their credit card bills have snowballed into a mountain and it’s too overwhelming and they see so relief in sight anytime soon.

These representatives seem to be steering people calling into what is best for the company and not the person calling. Now is that all representatives…. Of course not but these are the stories I am hearing we be wary.

If you are looking at trying to get the credit card companies to drop their interest then you are looking at what is called a Debt Management Program. Anything else will destroy your credit score. Now while there may be programs out there that are different that settling debt for pennies on the dollar the only way that can happen is for you to damage your credit score.

How much damage is hard to calculate as a credit score and report is like a fingerprint, every fingerprint is different thus the damage will be different for each person.

Credit is so specific that as I tell people who contact me that unless I can see the exact credit report for them that they are seeking advice on I can only give them general advice and I HATE giving general advice for someone with a specific goal they are trying to accomplish.

Andi am hearing that people are feeling like they are being double-talked into something they are not 100% sure is best for them.

One thing I have to point out was a story that still sticks in my head and it was from someone who spoke to National Debt Relief, they told him that they could get his then credit card that he owed approx. $19,000 down 30% and save him almost $6,000 ($5,700 to be exact). Now what were they going to do? Basically not tell him that in a few months the credit card company he owed the money to they were going to wait a few months and then the company would contact them offering a settlement of 30%.

So what in the world did they do? In my opinion (and probably yours too) nothing. But welcome to the world we live in. He wanted to see if I could help and I helped him settle it for a total of $8,000.00 saving him $11,000.00

As I have mentioned in past blogs at the end of this will be my email address, broken up to prevent me getting killed with spam but feel free to contact me. While seeing the credit report will help me assess you situation the standard disclaimer is I’m not dispensing legal or financial advice but I will look at your report and tell you what I would do in your situation with my 13 years of hands on experience in this industry.

When calling looking for relief of the financial sorts do not just jump on board with a company and be what the sales term is called as a “one call close”.

Get the information from these companies, think about it, make a pros and cons list. Good question for you reading this is the companies you called did they give you a pros and cons of what they are trying to sell you? if they didn’t then do not think for one second that there isn’t a plus and minus for you with what you are trying to do.

This like most things is a game of leverage, be smart always have a pad and paper with you to write what these companies are telling you (even if you bullet point it) as you will not remember what they tell you as it is your first time hearing this information and studies show most people only retain 15% of new information given to them. This way you now have reference to go back and if you contact someone like me your able to provide me the inforaiton they told you in order for me to provide you an educated opinion on the specific matter in question.

My email is below if you want to email me but please provide me a solid summary in bullet points to what is owed what you hope to accomplish and any additional information you may think I need.


Best of luck!




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EMAIL:             Wayne @ wayne the credit guy.com    (REMOVE ALL THE SPACES)

Student Loan Credit Report Scam?

Ok, allow me first to say that the headline was just an eye catcher to get you to read this article/blog, it’s not like the government is TRYING to scam you.

Or was it?

Let’s break it down for you and everyone out there. As stated in the past at this point I have review approximately 16,000 credit reports in my now 11 years of experience of the credit repair/restoration/management industry.

What amazes me is when I come across a client who has listed 5-20 student loan accounts on their credit and they range from $200- 20,000.00. I have even seen some reporting on a credit file where no payments were ever made and showed what seemed to be a $70.00 loan.

REALLY?? A $70.00 student loan??

Why the department of education and the other student loan lenders out there do not consolidate the loans into one once school is complete is truly beyond me, OR at the very least once school is completed. Many times if a consumer is negligent in paying the bill due to whatever reason then the consumer now has 9 negative slow pays (if they have 9 accts reporting) on their credit which is DEVASTATING to their credit as opposed to if the accounts were consolidated into one account with the creditor.

The other thing to point out is we NEED to get consumers out there to identify this horrible potential to destroy their credit file and get PROACTIVE, after all knowledge is power!

So what can you do?

FIRST thing is to contact the lender and understand the first person you will talk to is a customer service representative who has little to no authority to do anything that can help you for what you truly need. You NEED to be proactive when approaching this situation.

Now this is not a knock against customer service representatives but in my experience the bad ones (meaning ones that don’t care) greatly outnumber the few goods ones out there.

In my experience I have never come across anyone who has made the job of customer service as a career. In my experience they are poorly trained (try googling Comcast customer service complaints) or they just don’t care as it’s a 9-5 job.

Most student loans are federally guaranteed by the department of education. But don’t expect them to be leaping to help you by any manner. Understand that this is your life and your responsibilities so you need to be proactive in this and as you’re the only one who truly gets affected by this so it’s in your hands.

Your credit score needs to be good in order to do this, typically a 660 on average. Check with your current bank to see if they offer student loan consolidation. If they do then have your credit reports with you and layout just how many active “student loan accounts”.

What you want to do is limit risk if something happens and eliminate the ability to let something slip by.

NOTE: I had a client one time who had three 150.00 student loan accounts they had no clue about. And then of course something slipped by and now they had 3 negative accounts reporting current 90 day late payments. Destroying their credit for at least a year and that is with credit repair help.

Now when you Consolidate loans typically you increase the length of time the loan is paid back which of course means smaller payments but MORE of them. So you need to look at this in the same way you look at a home loan.

If they give you a 30 year payment plan ask for a amortization schedule of the loan repayments so you can see exactly how much money every month is going towards principle and how much goes towards interest and at least now you have an idea where you money is going.

And with proper planning you can identity if you make 1 extra payment per year or a few dollars extra per month how much that can lower the total time frame of paying off the student loan.


  1. Depending on your career some allow your student loans to be greatly reduced and even forgiven. Click on the link below to see


  1. You CANNOT discharge your student loan debt by filing bankruptcy as a whole, but there are cases where it can happen. Check out the link below to see some examples and if they correlate to you.


  1. Student loans can file to have a portion of your paycheck withheld as well as your tax returns. (Individual states may vary so check with yours).

NOTE: the links I have attached are for informational purposes only and I take no responsibility to their reliability. They are merely for a measuring stick to guide you some possible tools to help you the consumer.

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand.

how the “Real world of credit” works. wayne@waynethecreditguy.com

And of course if you need some credit work to increase your credit score then call me today to discuss!