Debt-Settlement Companies: Promises, Promises

I just returned to Rhode Island from a weeks’ vacation in Maine.  While away, I was bombarded by a whole new batch of debt settlement commercials.

Who wouldn’t want to settle their debt for pennies on the dollar?  If you can avoid bankruptcy and still make all your debts disappear, what’s not to like?  These debt-relief advertisements certainly offered hope, but do they actually work?

Get out your magnifying glass and be prepared to read the fine-print.  Most of the ads use actors and are only dramatizing what may be possible.  In other words, these were not their personal experiences.  Rather, the fake wife was talking about the fake forgiven debt and her fake husband was nodding in agreement.  The commercial ended by saying “these results are not typical.”

While each company is different and must be examined individually, you should be suspicious of any company that does not have a local office.  If you need help with budgeting, or drafting a workable repayment program, you will want to sit across from a reputable legal/ financial advisor who is part of your community.  Just sending a monthly check to some far away debt-relief Company (even if it is run by attorneys) is no way to get your finances in order.

Calling a skilled bankruptcy lawyer in your state should be the first step in understanding your debt-relief options.  And no, you will not be forced into filing for bankruptcy just because you made the call.  If your facts do not fit a bankruptcy solution, a good bankruptcy lawyer can put you in touch with one of several debt counseling organizations approved by the US Trustee’s Office.

I have counseled many who wasted time and money on unworkable debt repayment schemes.  If you are struggling with excessive debt and want to know all your options, do not sign any contracts, or start a repayment program until you have had it examined by a qualified bankruptcy lawyer.