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Beware Debt Relief Prowlers

I don’t believe in the validity of the debt relief programs that promise to save you thousands of dollars by letting them manager your payments on outstanding debt.

I bet you have seen/heard the ads on TV and Radio promising you can participate in Obama’s stimulus bailouts by contacting the ABC Debt Solutions company and if you qualify you can to eliminate over $10,000 of credit card balances… blah blah blah. What you don’t know is that in most cases the consumer will end up with horrible credit records and will pay dearly in the long run with unexpected consequences.

If you possess high balances and are having trouble paying your minimums it would be much better you take control of your own situation. For instance please don’t ignore the phone! Either answer the collection calls or make the calls the creditors yourself. Be bold and preemptive. There are programs in place with most lenders to help with payment options during these tough times and all you have to do is ask. If the account is only recently past due you should be able to work something out to make your account current or at least work towards current status. This will save your credit score in the long run.

If you are already beyond missing a payment or two and your account is in collections or turned over to a third party company, you can certainly also take control and make an effort to begin addressing the situation. If the collection agency is calling you relentlessly you can use the cease and desist letter to call off the dogs. This action will require them to stop contacting/harassing you for the debt. As part of the letter you are stating you are contacting the original creditor and will be dealing with them directly. So you must call the original creditor and begin negotiating next steps.

Finally if the account is extremely beyond past due or is charged off by the creditor then you must contact the original creditor and begin talking about a settlement in return for a status change for this account within your credit files. This can be trickier but it can happen!

Keep in mind all of this should be done by you. You don’t need to hire someone to take control of your situation. If you follow these simple steps you can earn the satisfaction of self resolution and save valuable dollars along the way! For details on this and other strategies please go to my website at

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