GHS Solutions

GHS Solutions is a debt consolidation and settlement company based in Florida. They’ve been in existence since 2006, and, depending on which source you want to believe, are either a premiere company or one that you need to watch out for.

At a certain point, when you’re reviewing debt collection companies, you start looking at their websites for something different. GHS Solutions site, once again, has a page that has the same exact information most other debt consolidation companies have, in the same order using the same words in talking about the five options they believe every person has. When you keep seeing the same thing over and over, it instantly makes you suspect, whether it’s justified or not.

If they accept you, there is a set up fee of 15%, with no monthly fee, settlement fee, or processing fee. They do keep the first four payments to pay their fee, which is different than most companies, which take the first three. They tell people that they average between 40 and 70% of a reduction, which is interesting since I haven’t seen any other site do that. I also haven’t seen any other site show how much someone might have owed, and what the payment was that they actually made. There’s no way to prove if it’s accurate or not, but it does look impressive seeing it.

First, some downsides. They’ve only been in existence since 2006, but they have numerous complaints against them through the BBB; or do they? One site showed 36 complaints against them, giving them a F rating, while another site, not listing how many complaints, gave them a B rating. I tend to believe the bad rating more, mainly because there are numerous complaints against GHS Solutions online. Some complaints stated that the company said they’d talk to creditors and prevent them from getting phone calls and from being sued; that seems to not have happened. Other people said it was in the contract that you might get sued. That’s something a potential client should be told up front, whether it’s in the contract or not.

GHS Solutions does have some credible organizations that they’re a member of. One of those organizations is the United States Organization for Bankruptcy Alternatives (USOBA). They are also a member of the Association of Settlement Companies, and the International Association of Professional Debt Arbitrators. This means they’ve at least tried to do some positive things.

In the end, GHS Solutions may or may not be the company for you. Three years really isn’t enough time to be able to do a full evaluation on a company, but if you don’t feel safe, find someone else to help you.

They’ve been in business since 2005, which makes them slightly older than some other debt relief companies. They charge the standard 15% set up fee, with no monthly or settlement fees. They’re up front in telling you that they won’t be contacting your creditors monthly, and that they won’t be able to stop creditor calls, which is what many people complain about with other companies. They also let you know up front that if you cancel, there will be no refunding of fees.

Franklin Debt Relief did something different in 2007 than we’ve seen from any other company of its type. It actually sent out a press release against credit card companies, outing their practices and saying they pushed consumers deeper into debt. It seems to have been prophetic, based on what’s happening today with credit cards raising their rates at a moment’s notice because of the bad economy. One of the quotes that their spokesman at the time made was:

“It is only when a person is in financial trouble that they become aware of the charges that they have to pay. At that point they are too far involved and it becomes impossible for them to avoid these additional charges. At Franklin Debt Relief we believe that these terms should have to be made more prominent to consumers and also that legislation should be put in place to cap these charges.”

Franklin Debt Relief seems to be a company that’s doing the right thing by its customers, mainly by letting them know up front what they may be in for. It’s a step in the right direction.

There are three ways you can decide to go in finding some assistance.  One way is to find a budget manager of some kind.  These are people who know how to take all of your bills and expenses, compare them to your income, and make a determination as to whether going on a budget of some kind is all you need, or whether your needs are much greater.  The best thing about a budget manager is that they’ll work one on one with you, and take the time to explain things to you.

Another way to go is to a government sponsored organization known as Consumer Credit Counseling.  Every large metropolitan city in the United States has at least one CCCS office willing to help you determine if you qualify for some kind of payment protection, or whether you’ll need to declare bankruptcy.  Although their initial services are free, if they take you on there will be small processing fees for them to help you on a monthly basis.  One of the problems with this type of service is that they usually have other people waiting, so they can’t take as much time with you as you might need.  Also, if they make a determination that you don’t need their services because you make enough money to pay your bills, their help stops, and you’re left to try to figure out how to pay your bills.

The third way you can go is to a debt consolidation company.  You need to check them out thoroughly before you decide on this option, because their intention isn’t to help you budget your money, or even to determine if you’re making enough money to pay your bills.  Their overall goal is to help you clear your debt, and you may not like how they do it.

Of course, you can also just do it yourself by figuring out how to set up Excel to help you with the process, or pulling out a pad of paper and something to write with and detailing everything you spend against how much you bring in.  With some hard work and rudimentary math skills, you can determine your own status, and figure out where to go next.

Watch for Debt Consolidation Scams

Millions of Americans are hindered with credit card, auto, home and student loan debt and are looking for debt consolidation services to help alleviate the monthly financial strain that these bills place on them. Debt consolidation is a great way to reduce interest rate payments and consolidate debt. Unfortunately, there are individuals and companies out there looking for ways to take advantage of consumers in financial strain. When you’re looking for a debt consolidation company, look out for these “scam” warning signs.

Huge Fees:

If a debt consolidation company charges a large upfront fee for reviewing your account information and offering a credit situation analysis, you may want to do a little research for consumer complaints and to see if the company is in good standing with the Better Business Bureau. Look into any company asking for upfront fees for educational assistance, as most of this information is available free online. If a company were confident that you would benefit from their services, why would they ask for a fee to educate you? Wouldn’t any education help you realize their services are worth your investment? Reputable companies often charge fees after they are certain that they can help your financial situation.

Promises that seem too good to be true:

No company can guarantee upfront that your monthly payments will be reduced by 50% or that they can reduce your interest rates by 20%. Debt consolidation is a great way to reduce monthly payments, but everyone’s current and past situation is different and a company can’t guarantee something until they do a thorough analysis of your unique situation. If a company guarantees something without looking into your situation, ask them to send you something in writing and check to see if the company has any record of doing what they say they can do.

You get contacted by them:

Most reputable companies avoid spam emails, and many others that send out junk email or cold call your home are looking for an upfront fee that is not tied to results. If a company that does not have a current relationship with you contacts you, be weary of doing business. That said, there are reputable companies that search for new customers, just do a little research before committing to anything and ask to be billed after they’ve given you a valuable service.

When researching to see if a company is reputable, visit their website, search for consumer reviews and check with the Better Business Bureau to see if they’re in good standing. There are great debt consolidation companies, just be sure you choose to give money to a company that can help your situation.

See more:

Beware of Debt Help Scams – http://www.nyc.gov/html/ofe/html/help/beware_debt.shtml

FTC Consumer Information: InDebt? – http://www.ftc.gov/bcp/menus/consumer/credit/debt.shtm