Why Using Debt Relief Agencies May Do More Harm than Good

Contrary to the representations of some debt relief agencies, the debt relief processes are not a one-size fits all categories. In turn, what may potentially be beneficial to one individual will not necessarily benefit another, and in certain cases, it may harm another. This is especially true when it comes to certain debt relief agencies and consumers struggling under the weight of outstanding debt obligations. In short, a consumer will garner the most benefit (while incurring the least costs) through consulting with one of the many local, state, and federal debt and credit counseling organizations with satellite offices across the United States. Through this consultation, the next step for many consumers is to commence both personal and professional action to rectify outstanding debt situations. Once the time for action comes, a debtor’s only credible resource for representation and assistance will come through a bankruptcy and debt lawyer.

Scams Abound in Debt Relief Companies

For starters, a debtor can incur a great deal of damage through using a debt relief agency engaged in unscrupulous or outright illegal practices. Unfortunately, this is not an uncommon occurrence in the debt relief industry, and consumer reports and government warnings abound about debt relief scams and other credit counseling frauds. In short, these companies charge debtors to help with their debt problems (creating more expenses for the consumer and less income to address debts). In many cases, companies will simply take the money and do nothing, whether intentionally or otherwise. In reality, many debtors simply cannot use a debt relief agency to negotiate or settle existing debts, such as tax debts, child support obligations, student loans, and other secured loans (think houses and autos). While a debt relief agency may be able to reduce unsecured debts (think mostly credit cards), the fact of the matter is that consumers can often do this on their own accord.

Consulting Debt Relief Companies May Damage Credit Scores

As a part of most debt relief actions, a company will make inquiries with the three major credit-reporting companies to ascertain the status and number of outstanding delinquent accounts. These inquiries, especially if in large number, can reduce one’s already damaged credit score. Even by consulting with these companies for a free consultation, the inquiry will appear on the credit report anywhere from three (3) to five (5) years, regardless of whether the debt relief company helps the consumer. In addition, consumers should really be wary about giving out personal information, which will include a social security number in many cases, to a random debt relief action. Not only can they steal your money, but also, your identity, too.

Getting Legal Help with Debt Relief

As a consummate source on debt relief and bankruptcy options, consumers should look towards a bankruptcy and debt relief lawyer to take any action to rectify their debt situation. With a lawyer, consumers can garner an accurate and detailed depiction of their possible options to relieve debt woes, while also gain representation and help with taking action on any on number of these highly case-specific options.

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