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Consumer credit counseling, debt settlement, some options to consider during credit card trouble
By Angela Hawke on Jun 2nd, 2010
There are a number of options for those dealing with credit card debt, although a supposed federal law is not one of them.
Recently, personal finance expert Liz Pulliam Weston noted on her blog that companies claiming there is a new law making it easier to pursue debt settlement are probably a scam. She said the law does not exist, although consumers do have options when struggling with debt.
One of those options is consumer credit counseling, which can provide a person with a debt management plan. These programs can help a person pay off debt in about five years and may give lower interest rates
Another option may be debt settlement, but consumers should make sure they are dealing with a legitimate company. Some advocates and consumers have complained about companies that may take fees for the services without providing any settlement, which leaves people even further in debt.
"Some people are able to settle their debts for less than they owe, but many who try wind up getting sued by their creditors," Pulliam Weston wrote.
In fact, Illinois recently forwarded a law to Governor Pat Quinn's desk that would provide additional requirements for debt settlement companies that offer services in the state.
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