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Dangers of Negotiating Credit Card Debt

Posted on | November 9, 2010 | 1 Comment

People who are trying to settle huge amounts of debts usually end up getting the guidance and support of debt settlement companies. Apart from them, you can also contact a debt negotiation attorney as an alternative to hiring the help of these companies. They can give you the same service that debt management companies offer you.

However, if you are considering of getting a third party to help you settle your outstanding balances. There are several things that you have to take into consideration, and this includes the following:

  1. Be aware of advertising tactics. Many of these debt reduction programs claim that they can negotiate credit card debt by lowering your outstanding balances anywhere from 30 to 50 percent. While it is true that they can help you out, many clients have later on realized that they have ended up paying more than what they are indebted. There are certain instances that they charge a lot to the clients.
  2. Check for fakes and scammers. Unfortunately, many companies are taking advantage of the trust that their clients have given to them.  With that some clients ended up more in debt because the debt management agency that they got, ran away with their money. Later on they found out that their credit card bills as well as other debts were not managed at all.

Problem with attorney representation

Some debt management companies give the freedom to let their clients choose whether they want to have a representation from an attorney to help them in talking to their creditors. Many people want this because it is just sensible to have an experienced person help you out and deal with your rights. However, the thing about this is that not all debt management companies were able to provide their clients with an attorney representation. They ended up alone in facing their creditors.

Take for instance what happened to the Hass Kennedy Chartered LLC and the Consumer Law Center, they both claim to have attorney representation but when the clients asked for it, nobody in the firm represented them. Not even the owner. As a result they did not have someone to help them, and they did not even have a refund for what they have paid.

If you really want to resolve your accounts, you can have a debt settlement plan instead rather than relying to a debt negotiation attorney. This will give you the assurance that your debts will be arranged and settled.


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