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November 21, 2003

Ameridebt: Friend or foe of consumers in crisis?

Recent reports announce that the FTC is suing Ameridebt for fraud: hiding fees and not educating consumers about how to get out of debt. I scoured resources for the full story and here's what I learned: The company bills itself as the friend of consumers in crisis and allegedly falsely calls itself a non-profit organization. Ameridebt charges upfront fees for debt-management plans, even though they do not advertise these initial costs. They collect money from consumers but the consumers' money goes straight to the bottom-line profit of this "not-for-profit" company.

A consumer's money is apparently NOT used to repay creditors. This is NOT GOOD. A consumer can spend thousands with Ameridebt only to find out in spite of that money spent, they are back at square one with their debt and a credit report in worse shape than before.

Keys to credit counseling:

Check for complaints against the company
Be sure to go over extensively what your rights are
Ask questions and get solid, conclusive answers
Is there a refund or guarantee of some sort?
You should not have to pay money up front
Ask how your credit report will be affected

When you go for credit counseling or debt management, you are seeking help for your money problems. It is time for you to take a hard look at your spending habits and address how to be successful during and after getting back on your feet. You want to learn how to demonstrate positive money management skills, something critical to your crediit report and your financial future. Addressing your spending habits, your priorities and your vision for your financial future is a necessity.

For more on credit counseling as an option to deal with debt problems, pick up a copy of my exclusive special report: Holding a Losing Hand? I look at the ins and outs and the truth about credit repair and how to do it effectively and efficiently. The report is priced at $3.95 for a limited time, giving consumers an inexpensive way to get the answers to questions they need ASAP. No hidden fees, fully refundable and it doesn't pull on your credit report, it's a great resource to help you evaluate where you should start to solve your debt problems: do it yourself or seek professional help and where to go to do so.

Posted by on November 21, 2003 at 05:10 PM |

Comments

Norfolk VA

I've been with Ameridebt for over 18 months and have had ZERO PROBLEMS. In fact all but 4 bills are totally paid off now, and I started with several. Maybe it's the state law about this type of company that protects me, but Ameridebt has been nothing but professional and helpful since I first called them.

Posted by: Norfolk VA | February 18, 2004 at 12:29 PM

Maclennane

I spent 3 years with Ameridebt and for the most part it was very positive. Their "voluntary contribution" was voluntary and as soon as I asked not to pay it it was removed. My debts were drastically reduced. They were kind of difficult when I finally decided to withdraw from the program AND you can't get other credit (home loan, etc.) if you're in their program but, so far, I'm glad I did it.

Posted by: Maclennane | July 09, 2004 at 05:52 PM

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