… a company whose goal was to convince people not to file for bankruptcy, ends up filing for bankruptcy. The irony of this one is over the top.
Of course, this tempts me to go into my tirade about wolves-in-sheeps’-clothing like the above company… If you must read the rant, click on…
Ameridebt is one of many companies that bill themselves as “credit counseling services.” In truth, it looks like they’re yet another in a litany of companies who operate under the guise of helping lower-income people, or at least those with poor credit skills, when in truth they seek to make as much money off of them as possible.
The gimmick admittedly isn’t as bad as the PayDay loan phenomenon, where a company seeks to put someone in just a little bit of debt, and then tried to keep them there as long as they can by tacking on excessive fees and skirting around usury laws in any way they can. However, it’s rather shady when a “credit counseling” company bills itself as “non-profit” to appear as if their motives are altruistic, when in truth the company is a mere shell behind which a number of for-profit companies collect fees and earn income.
Most importantly, let’s not gloss over the details here. The premise of a debt counseling service isn’t to improve your credit rating, no matter what was claimed just a year ago when advertisements for these outfits were all the rage. You effectively turn over a wad of cash on a periodic basis to a company that decides which of your debtors gets money, in what amount, and in what frequency…. after skimming a little for themselves, of course. This never really sits well with creditors, who generally expect the payments they ask for… not a middleman throwing them a tidbit and saying “take it or leave it.” As a result, you’d better assume that going into “debt counseling” isn’t going to be a shiny spot on your credit report.
It’s always nice to take comfort in the belief that there’s a quick and easy solution to a problem, especially when it comes to being tight on money. We live in a society that makes money paramount, and we live in a sad state where if you don’t have it, it’s hard to be succesful in life, love, work or in social circles. Even more reason to very wary of peddlers and scamsters who tout quick-fix solutions to debt problems.