6 On Your Side Answers: Are debt settlement services a good choi

6 On Your Side Answers: Are debt settlement services a good choice?

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By DON DARE
6 On Your Side Consumer Investigator

KNOXVILLE (WATE) - Since most people carry several different credit cards with them, it's easy to overspend when you are not handing over cash. As a result, many people find themselves in debt.

Yolanda in Knoxville writes: "Tell me about these debt settlement services I see advertised. Are they a good choice?"

You hear and see commercials on radio and TV from debt settlement companies wanting to help you dig out of debt.

While they may sound appealing, some for-profit companies may leave you worse off than when you started down your path toward being debt free.

New research from the center for responsible lending finds that people who sign up with for-profit settlement companies find their debt grows about 20 percent on average with no guarantee that a settlement will be reached.

Remember those credit card data breaches late last year? You would think with the number of cards exposed, people would want to throw away their cards. That is not so.

So far this year, those of us in America continue to move to electronic payments.

A debt issuer study shows there are now an average of 20.1 electronic transactions per month, up from 19.4 transactions per month at this time last year.

If you are tired of carrying a bunch of credit cards with you, Loop Pay enables you to use your iPhone to make mobile payments without carrying your credit cards.

The Loop charge case, which fits the iPhone 5 and 5S, lets you make mobile payments at any point of sale terminal that you would ordinarily swipe a card.

No magnetic strip is involved. Instead, the loop case transmits a magnetic field that emulates the data embedded in your card's magnetic strip.

All you do is hold the phone close to the strip reader and activate the transaction.


You can see Don Dare's 6 On Your Side Answers every Tuesday and Thursday on 6 News at 4:00.

If you have a question you can send Don an email at ddare@wate.com or call his 6 On Your Side hotline at (865) 633-5974.


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