You've seen the commercials on television and wondered if they really are true. Debt Busters Corporation claims to slash your debt and help you to avoid bankruptcy. Can a company really call your credit card lenders and talk down your balance owed? Help with medical debt? Reduce delinquent electric bills? Learn about alternatives to bankruptcy and how Debt Busters works.
How Does Debt Busters Work?
Debt Busters Corporation has been in business for more than 20 years, and claims to have saved their clients more than $200 million through debt settlement. Like any debt relief organization, this group helps clients by calling creditors and negotiating a lower payoff amount for delinquent bills.
For instance, if you owe a $10,000 hospital bill, but have not made a payment for 18 months, a debt relief organization may call the hospital and offer to settle the bill, in full, for $5,000. If the hospital accepts, you just slashed your debt in half, but now you need to pay that bill.
Will Debt Busters Loans Help?
How? Debt Busters helps you to reduce your outstanding, unsecured debt, such as:
- credit cards
- medical and dental bills
- electric bill
- gas and other utilities
- personal loans
- professional fees
and sometimes Payday loans. Once Debt Busters negotiates the total amount down, it offers you debt consolidation. You pay a monthly payment to this debt relief organization, who in turn pays your creditors until all negotiated debt is paid off.
Unlike other debt settlement and negotiation companies, Debt Busters has a host of industry approvals and memberships, including:
- Better Business Bureau
- National Association of Consumer Debt Companies
- United States Organization for Bankruptcy Alternatives
Is Debt Consolidation Required?
Yes, but not the same way as typical debt consolidation. In this case, the money goes through Debt Busters and your creditors agree to accept a lower, negotiated amount if you make steady payments. If you miss a payment, though, the deal may be off - leaving you back at square one and buried in debt.
In most cases you can keep one credit card for emergencies, but that's up to the credit card companies; some people find themselves unable to keep one. Debt Busters doesn't repair your credit, or sort through your credit report to find errors and help boost your FICO score. In general, "credit repair" systems are overpriced programs that consumers can easily do themselves. Debt Busters is not part of the credit repair industry.
In the end, the stress of too many bills can make Debt Busters Corporation look like a wise choice. You can cut your bills dramatically, be held to a payment schedule that is realistic, and be completely out of debt on unsecured loans within an average of 36 months.
Keep an eye out for other loan relief organizations and new programs offered by the government and private industry to help with personal finances. Cutting debt is key to getting out of debt and rebuilding a healthy financial life.
Melanie Zoltan - Melanie Zoltan is a former college professor and administrator who has written for About.com, PCWorld, Brain Child, Thomson Gale, and ...
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