Many of these 'too-good-to-be-true' offers are run by con artists.
The old adage goes, “If it is too good to be true… It probably is.” This nugget of wisdom is particularly true when it comes to shady debt relief programs. For someone struggling under a mountain of debt the promises of lower payments, lower interest rates, and reducing the amount owed can seem like a dream come true. Unfortunately the urgency of wanting to get out of debt can cloud better judgment and lead debtors to fall victim to these con artists.
The problem has become so widespread over the last few years that the Federal Trade Commission has sued dozens of these companies claiming fees but not actually helping customers out of debt at all. The goal of these debt settlement companies are to get customers to sign up for an initial fee and essentially “take the money and run” leaving the customers further in debt having spent the last of their precious little resources and not getting any benefits in return.
A Light at the end of the Tunnel
The good news is that there are other options available for people with crippling debt problems. An experienced bankruptcy lawyer can help those in debt file for chapter 7 bankruptcy which will enable clients to stand on their own two feet again with a strong stable financial position for the future. By filing for bankruptcy debtors will receive peace of mind that they are getting their financial affairs in order and quiet by stopping harassing creditor calls.
One of the most important differences in working with Judge Law Firm for a bankruptcy case compared to unreliable debt relief scams will be the personal attention from an experienced attorney along with the education and optimism received from knowing that your debt problems are being taken care of in a direct manner*.
Herb Weisbaum. “Debt relief deals ‘preying on consumer’s trust’” msnbc.msn.com 4/17/2007. 4/26/2012
*There are a few good debt management programs. In Southern Arizona, I only refer clients to one debt management company, Consumer Credit Counseling Service. I know clients who have successfully completed their program. However, they can’t work miracles. They work out repayment plans from 36 to 60 months long with much lower interest rates. If you can’t afford to repay the principal spread out over 60 months then no debt management program can help you. In Tucson, their number is 795-2227 ( toll free 866.226.0278); They have two locations in town: 1) 5515 E Grant Rd, Suite 211 Tucson, AZ near Grant and Craycroft, and 2) 4732 N Oracle Rd, Suite 217, Tucson AZ (one block north of Tucson Mall)