Renegotiating Your Debt

March 16, 2009

With personal bankruptcy and household debt at record levels many people are reaching out for help with their debt. Many are looking to use debt-counseling companies that charge fees and promise to make creditors go away, but some of these companies are counseling their clients to ruin.

The Federal Trade Commission last year censured several companies that falsely claimed that they can reduce their clients’ debt by up to 60%. Some of the companies advised their customers to stop paying their bills without informing them that they can be sued by the creditors. Several also claimed that they could help repair individual credit reports without actually providing any services.

Going to a legitimate credit counseling firm can help, but there are no miracle cures. A decent credit counseling firm can renegotiate with lenders to eliminate late fees and lower interest rates for a reasonable fee. You can find a legitimate credit counseling agency at the National Foundation for Credit Counseling.

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