Watching those late night commercials again? – Debt Relief Agencies
Watching those late night commercials again?
Beware, beware of commercials you see offering to ‘settle’ your debt for pennies on the dollar. I’m sorry to say that there is just no such thing.
The so-called debt relief agencies offer nothing more than a game of you giving them the money you were giving to your credit cards, and them giving you the run-around.
They have no magical power to make AMEX or Mastercard, or Discover, or anyone, settle your debt. When they say that consumers settle for pennies on the dollar, they really mean that one consumer out of hundreds managed to settle for so little. How do I know this? Because the Federal Trade Commission has received thousands of complaints from consumers saying that they were misled by these companies.
Remember failing to make minimum payments on your cards means you are in default. Being in default means you will be sued. There is no special exception for folks who have signed on with Someone and Somebody’s fly-by-night-debt relief service.
There just isn’t.
I’ve met with too many clients recently who have been tempted to call. Some have called, and been smart enough to ‘hear’ the fine print in the phone pitch and hang up.
Yes, your credit card company is trying very hard to screw you right now. This might look like a decreased credit limit, a higher interest rate, a stratospheric annual fee, a nasty letter, etc. They are working hard to get as much out of as many people before the new Federal regulations take hold next year. Apparently it’s happening to so many Americans that even the Wall Street Journal is warning its readers (!) about it. Check out this article published November 8, 2009.
And yes, you need to find a solution that addresses your whole financial situation. Not just one aspect of it. Call an attorney who will be your advocate, and who will analyze your big picture.