Are debt relief companies legitimate?

Answer by  Latin4 (11170)

Most of them are but they will charge you something to handle your case. With a little self control you can to this yourself. Cut up your credit cards but one. Pay them off more then the minimum. Hold off on spending. Cook at home. Going out can be a treat. Use the library for magazines and movies.

Answer by  jon6 (488)

Very few debt relief companies are legitimate. I would start by checking with the Better Business Bureau. Most these companies charge fees that put you further into debt.

Answer by  NGoodson (3395)

Some debt relief companies are actually very helpful. If you have a large amount of debt though and still can't afford to pay it even after they have consolidated everything for you, you might want to look into bankruptcy instead.

Answer by  olive8 (911)

Be very careful of these companies since even the legitimate ones can put you in a situation where your credit is ruined. These are often viewed by potential creditors as being one step better than bankruptcy as most of your accounts will settle for pennies on the dollar painting you as a poor credit risk.

Answer by  flamiss22 (5081)

Yes some of them are but it really is not necessary to go to those places to settle on your accounts. You can call your creditors and make arrangements directly.

Answer by  Devierue (317)

Most are not. Of those that are, each and every one has special rules and "catches" that you may not be prepared to accept. Usually, they are preying on desperation and fear and charging ridiculous rates for "services" that you could do yourself. Your best bet is to speak face to face with an accountant or banker.

Answer by  dsmith42 (371)

Some are, but most are scams. You can often negotiate directly with your creditors for payment plans or decreased payments. If you are truly in a hopeless situation, an interview with an actual attorney is a far better choice of how to spend your money.