WARNING!

WARNING!: Debt Companies that Offer Escrow Accounts Will Grow Your Debt

Today, I was talking to a young New Yorker who has large amounts of credit card debt. He was ultra the ultra competitive type. Do you know the type of guy I’m talking about? If you say ”I saved the world today” he will have to one-up you and say “I saved the universe twice today”? Well he was that type of guy.

We got to talking about credit card debt and I told him that many of my clients have a lot of unpaid credit card debt. Of course, Mr. Ultra Competitive had to one-up my clients. He replied, ”I bet they don’t have as much debt as I do”.

The thing that made my ears perk up was when he stated that he knew about this hot new debt elimination program.

He said “what you do is make a small monthly payment, to the company and they put your money into the their ’escrow account’ then the company your pays your debt out of the escrow account.

I replied "debt elimination via 'escrow account' is one of the new rip-off's in America.

For one, the debt elimination company usually requires you to pay a fee usually 15% of your overall debt.

Second, the debt elimination company doesn’t pay anything until you have a “reasonable settlement amount” in your escrow account. Meanwhile, you are paying them and they are not paying anyone.

The problem that I have with these escrow elimination companies, is that they lead (or mislead) you to think that once you put your money into the companies escrow account, your bills will be paid out of a pool of funds. These so called escrow debt eliminations companies, lead people to think that they are pooling their money in with the companies money and that their bills will be paid, with the company’s money,
This concept is a big rip-off. Do not fall for it

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