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Beware of false promises from debt relief companies

September 17, 2009

I’ve become quite concerned with some of the advertisements I’ve seen recently for debt relief companies.

I have seen more and more places claiming that people have a “right” to settle their debt for 50 percent of what they owe. I’ve also seen quite a few ads somehow relating the government and the president to credit card debt relief.

Neither of these things are true.

No creditor has a legal obligation to accept less than the full amount that you owe them. Some companies are willing to consider a settlement offer, but many won’t.  And those that will accept a settlement aren’t doing it because they are legally bound to do so.

As far as the government goes, there is nothing in place to help people pay off their credit card debt.

The new CARD Act that is partially in effect regulates the credit card companies in some areas, but it does not offer any financial help to individual borrowers to reduce their debt.

If you are struggling with credit card debt, there is reputable help available. The best place to start is with a credit counseling session. Advantage CCS has a team of certified credit counselors who can review your financial situation and offer practical suggestions to pay down your debt.

Please research any debt relief company before you sign any paperwork or hand over any money. Make sure you are working with a reputable, non-profit agency that has your best interests in mind. And be especially watchful of companies that make promises that are too good to be true, or simply false.

Written by Lauralynn Schueckler · Filed Under Credit Counseling, Debt 

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