These programs involve deliberately ceasing payments to all your creditors to force your accounts into default to attempt settlements for less. The monthly payments you make go towards building a settlement account and to pay the firm’s fees. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. If you end up being sued….you’ll be on your own.

There are only 3 valid ways for dealing with overwhelming credit card debts:
1) Pay or settle the debts yourself
2) enter into debt management plan through a non profit credit counseling firm like CCCS. This is NOT for debt reduction…but they can negotiate reduced payments and interest to make it easier if you’re struggling with your payments. Use this site for a referral:
3) File for Chapter 7 bankruptcy

I would not trust this company. I just did a quick search of the company name and already found multiple negitive hits. The links are listed below that conatin the infomation your seeking. I usually type in a companies name followed by “scam” or “complaint” using yahoo search. Websites manly used are BBB better business buerau, Ripoff report and complaints board. I suggest you use what is called a credit consumer debt counceling company. They will charge you a very small monthly fee and combine all your debts into one monthly payment for you. I used this years ago when I was involved in credit debt. However make sure to keep an eye on your credit reports and to have them send good will letters to debt collectors so once paid they hopfully won’t be showing on your credit history as collections / charge offs / bad debts. I found this out years after I finished paying off all the debt I had. I was never told this.

No…. there is no such thing as a reputable “debt reduction” company.

Nobody can force your creditors into reducing the money you owe…. so why would you pay a company to try and negotiate a settlement when there is no guarantee that it will work?
(And it usually does not… because as soon as they talk to your creditor they turn around and sue you and then your debt reduction company turns around and runs off with the money you paid them and says: “Oh well… we tried but we never said it would work….)

By then you are over 90 days late in paying your creditors, your accounts are in default, your credit is ruined and you will find a summons to appear in court in your mailbox right about the time when your “debt reduction company” won’t answer your calls anymore.

Most of them are scams.
A debt reduction company charge high fees and cannot guarantee that they can reduce your debt. They cannot do anything that you cannot do for yourself for free.
Creditors are under no legal obligation to accept a debt reduction company’s settlement offer. Your creditors can still continue to collect from you, and they can still sue you.

There are several active lawsuits against Morgan Drexen, here is a link to one of them,