Debt Counseling Services
You've probably no doubt seen the myriad of ads on TV promising you relief from credit card debt. These firms go by many different names including:
- Debt Relief
- Debt Counseling
- Debt Negotiation
- Consumer Counseling
- Non-Profit Debt Counseling
These “debt relief” firms promise to help get you out from under your credit card debt for “pennies on the dollar.”
What they don’t tell you is:
• What they charge for this service (with multiple different charges that can really add up).
• You’re still likely to receive negative entries on your credit reports.
• The results aren’t guaranteed.
• That the typical settlement is not “pennies on the dollar” and is usually much higher than they advertise. When the actual settlement is added to their fees, the result often is not that good.
What these firms do is negotiate with your creditors to get them to accept less than you owe. They do this by convincing your creditors that you’re a candidate for bankruptcy and refusing the offer may force you to file bankruptcy.
Additionally, the delinquencies and eventual settlement are usually reflected in your credit report. And the credit companies are not prevented from continuing to call and harass you during the negotiation process. In a court-filed bankruptcy, they are prevented from continuing collection calls and harassment by the automatic stay that goes into effect when you file your documents.
Before you sign any agreement with these agencies you should seek the advice of a qualified bankruptcy attorney. We provide a free initial consultation to help you determine if a debt relief firm would be in your best interest. Contact us now.