Debt Counseling Services – Bad Idea
Debt consolidation is the process by which an offer is made to your unsecured creditors, generally credit cards, in an amount that you can find affordable and they find satisfactory to eliminate the rest of your obligation to them. The premise is one that shows a great benefit on both sides in most instances. However, unfortunately this is not the case for most credit card users.
Debt counseling services can be a good start for a select few debtors in helping you deal with your financial difficulty. They state that they can consolidate your monthly payments and obtain payment or interest reductions on your unsecured debts. The major problem with debt counseling is that many people are in such financial trouble that they will not qualify for debt counseling because they will not be able to repay their debt even under the better terms. And again, this option WILL have a significant negative impact on your credit rating. Take advantage of the free debt consultation with an experienced attorney at Piet & Wright.
Additionally, the debt consolidation business will take its fees from the monthly payments that you make prior to making an offer to any of your unsecured creditors. This generally means that while you have put $400-$800 per month in their account, they go forward and take their $5000 to $9000 fee and then tell you that the further deposit that you make will go towards an offer to your creditors to settle your debt. in considering this, the debtor must understand that there is a good chance that the fee paid to the debt consolidation organization will be equal to or greater than the debt that you settle your credit cards for. Keep in mind also that the money that you paid to the debt consolidation organization could be used to settle your debt in a lump sum settlement.
Call one of our dedicated debt consolidating attorneys at Piet & Wright to find out about our low-cost per card fee that we charge in order to settle your debt.