Debt Consolidation Companies
Many people who are burdened by debt, but who want to avoid bankruptcy, have turned to debt consolidation or debt settlement companies for help. If you are considering this alternative, I encourage you to get the facts and to exercise great caution. Complaints about such companies are flooding into the offices of state attorneys general, stating that time after time these debt settlement companies are over-promising and under-delivering.
At Victor A. Denaro & Associates, I help individuals in Framingham, Marlborough and surrounding Massachusetts communities make smart, practical choices about debt relief. In matters this important — when your financial future is at stake — get your advice from an experienced, local attorney in a face-to-face meeting. Do not get your advice over the phone from a faceless company and employees that may or may not be able to guide you.
Debt settlement companies often make big claims. They might talk about getting your credit card debts negotiated down to 40 cents on the dollar. That sounds promising, but they are seldom able to deliver. According to a New York Times article describing a lawsuit by the state of Texas against a debt settlement firm, over 80 percent of the debts enrolled with the firm in question did not settle.
Here are some of the things you need to know about these debt consolidation companies:
- They charge large upfront fees, often 15 percent of your total debt, and they keep that amount regardless of the results they produce.
- They encourage you to stop paying your credit card bills, which often results in higher interest rates and larger accumulated debts.
- They often do not disclose all the implications of their approach, including the fact that you might be sued by creditors and you might face significant tax consequences.
In all, if the company does not achieve exceptional results, you are likely to end up in a worse financial situation than you had before you worked with them.Get Solutions You Can Trust
Debt consolidation companies do not have your best interest in mind. Speak with an experienced bankruptcy attorney instead. The consultation is free. Contact me to discuss your situation and get solutions that will improve your situation, not make it worse. Call (508) 620-5320.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.