Blue Sky Financial Group, Inc.

This company charges a one-time fee equal to 3% of a clients total debt submitted for negotiation, or $500 whichever is greater, a monthly maintenance fee of $40 for the first six accounts and $3.00 for each additional creditor claim. Also, after any settlements are agreed to and paid, the company charges 25% of the difference between the creditors claim and the settlement amount as fees. If the total debt is settled to be paid on an installment basis, the fee earned is 7% of the payments to be made.

Most similar companies rely on negotiating with creditors for a lump sum payment, which generally requires the consumer to withhold payments for an extended period of time. Also, the fees for these services are generally required to be paid in advance before any services are performed. These companies instruct the consumer not make payments to their creditors, but instead to them, and they will hold the funds until such a time they believe they have enough funds to make an offer. It is during this time that the creditors will likely take steps to secure payment, such as: telephone calls, derogatory credit reporting, arbitrations or lawsuits. For the foregoing reasons, we advise caution in dealing with debt negotiation, settlement companies.