Let’s face it the economy bad, and a lot of us are struggling with bills and etc. So I thought I set the record straight on both debt counseling vs. debt settlement. The truth vs. lies you sometimes see and hear in commercials.
Lets start with ‘Debt Settlement’ so openly advertised by a company called ‘Debt Solutions’, which itself is in trouble with the Attorney Generals from at least 20 states who are suing them on multiple counts of fraud. They charges there customers $286 a month to settle
their debts, but only about 1% ever did get there debts settled. Lets debunk one myth, debt settlement is no good for your credit report. It is the exactly the same as if you decided to declare bankruptcy instead. Don’t believe me, just contact any consumer agency in your area, and they will tell you both bankruptcy and debt settlement is one and the same on your credit report, and they will both stay on there for 10 years.
So what else is left?! My advice is first contact your credit card company and see if they have a program to help you. Surprisingly many do, and this is actually good for your credit report. If they have no such program and they are not willing to work with you I say try debt counseling. Despite the ads debt counseling works, I can a test
to that it did with me. I had $23,000 in credit card debt on no less than 6 credit cards, worse yet I had nothing to show for it. It only cost me $10 a month fee plus my payment which was roughly a third of the payment the credit card company originally wanted for me to pay. It took me 6 years but I did it, all my bills paid and my credit report score jumped 6 months after I finished by nearly 120 points. That is up not down, and btw debt counseling only appears on your credit report for as long as your are on the program. I also say it was the smartest thing I ever done, for I went from a credit card junkie to someone who is very careful about his debts. I don’t have any and don’t want them.
Furry Times 