Question for the Money Doctors

Question submitted on Dec 16, 2018.

Question

What is your opinion of debt relief companies? Have been hearing about 'National Debt Relief'. Apparently, they can reduce debt by up to 30%, but there are f ees & consequences. Can y ou comments on this approach? Thank you. Also, is it legal? What are negative consequences?

Answer

Please be careful of the commercials you see on TV or hear on the radio. You need to take responsibility for the debt you have incurred and take control of how to pay them off.

I would stay away from these companies that advertise.

I suggest working with the non profit credit counseling agencies. Here is an article from the Federal Trade Commission:

https://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor

Here is a link for Consumer Credit Counseling Services:

https://credit.org/cccs/

For additional information visit http://www.360financialliteracy.org/