Debt Relief and Consolidation

An Easier, Softer Way to Debt Relief?

As far as bankruptcy alternatives go, working with a "debt consolidation" service is probably the option you're most familiar with — mainly because these are the same companies you see promising debt relief on billboards and in radio advertisements every day.

Unfortunately, the results most of those companies promise and the debt relief they actually provide are almost always vastly different.

How Do These Companies Work?

Essentially, these "debt relief/debt negotiation" companies serve as middlemen between you and your creditors. And like all good middlemen, they take a cut for themselves.

Most of the time, their "cut" will be factored into the "low monthly payment plan" they've set up for you. This way, you won't see the monthly fee they take out and it feels as though they're helping you because they care. Don't believe the hype.

How Can You Protect Yourself?

The debt consolidation companies you want to avoid use a variety of different tactics to try and convince you they're on the level. They use different names or change their names often. They bandy about words and phrases like "debt free specialists" or "credit solutions." They may even tout "non-profit" status as a business or a very high rating from your local better business bureau.

To put it bluntly, all of this means nothing. In other words, the best way to protect yourself is to check the service out carefully before agreeing to work with them. You can do this by talking to your local consumer protection agency or better business bureau and finding out whether there have been complaints, how long the company has been in business, and so on. Even then, however, you may still be taking a risk.

A better strategy, if you have decided that bankruptcy isn't what you want and that you would rather seek debt relief through a consolidation loan — is to either work with an attorney who can negotiate with creditors for you or, to negotiate better terms with those creditors yourself.
 

Local: (530) 945-2540

Talk about your debt relief options with an experienced lawyer. Call the Law Offices of Robert Lee Hamilton in Redding, California, at the phone number listed above. You can also contact us by e-mail and someone from our office will get in touch with you shortly.

Serving Redding, Chico, and Other Shasta County Area Communities