When financial hardship strikes the non-stop phone calls from creditors and the looming worry can be overwhelming. After a while you start to wonder if you’ll be able to pay even your basic, everyday living expenses. You feel trapped, you are drowning in debt, there’s seems to be no way out. Filing for bankruptcy can provide consumers with a low-stress, straightforward way to get their lives back on track.

And then the calls from seemingly helpful companies start: “Hey! Let us help you with your overdue debt. We can get you a deal! The credit card companies work with us all the time!

But what about ‘Debt Relief’?

Unfortunately, before finally deciding to file for bankruptcy, many people waste thousands of dollars on “debt relief” companies (also referred to as “debt settlement,” “debt management,” and “debt consolidation”). These companies prey on vulnerable consumers, through empty promises and promising debtors a “too good to be true” solution to their financial bind.

The problem is – their promises are too good to be true.

Debt Relief Companies Are Deceiving…

You have seen the ads online and in print advertising:

“Consolidate your bills into one monthly payment without borrowing” and

“STOP credit harassment, foreclosures, repossessions, tax levies, and garnishments”

“Keep your property,”

“Wipe out your debts! Consolidate your bills! How? By using the protection and assistance of federal law.  For once let the law work for you!”

These are some of the phrases used by debt relief companies to entice stressed-out consumers into paying for their services that ultimately provide no lasting benefit, no relief, and frequently make your financial situation worse.

In the next few articles, I will lay out the differences between ‘debt relief’ and bankruptcy – so that you can make an informed decision about which approach is best for your situation.

The first thing we’ll examine is What Debt Relief Companies Don’t Tell You.