OK guys, I need your help on this one.

I have a coworker who is considering "hiring" a debt settlement firm to eliminate her credit card balance (north of 30k). The pitch is basically this.... the firm will 'negotiate' with Visa to lower it down to, say, 25% of that amount. they of course charge a fee for their services. she will not make payments on her accounts whilst the firm is negotiating.

Well, I smell a rat.

Clearly, her credit rating will be damaged. My question is...is this a scam? how does the scam work?

My guess is she will end up paying these idiots a 10% fee and end up in the exact same place as before. It seems like the people who cannot afford to lose anything are the ones who get suckered into these things. help me help her see the light of this stupidity.

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Jennifer
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