It seems I can’t turn on the radio without hearing some guy eagerly explaining how he is going to get you out of financial troubles by settling your debt for pennies on the dollar.  I cringe every time.  This industry has literally exploded overnight.  Granted, industries only do that when there is a need to fill.  Unfortunately, in this case, the minority of consumers are getting their needs met, let alone their expectations.

That is why the BBB has chosen to be incredibly harsh on the industry as a whole.  That is, the business of debt negotiation and debt settlement.  Unfortunately, in order to take advantage of these services, you must show a hardship.  To demonstrate hardship, a debt settlement company may suggest that you stop making payments to your creditors.  Take a breath now and apply your common sense.  Do you really think things will get better if you go DEEPER into debt and rack up MORE fees hiring someone to help you do it?  This tactic can and has led many consumers to a much worse situation than they were previously in.  Sometimes the results are lawsuits, legal battles and wage garnishments.  Ouch.

So where can you go to get help?  My advice, get some good credit counseling and even shop around for services.  Of course, check out the company’s BBB rating.  Many of them in Southern California have earned an “F” rating.  There is a difference between debt consolidation, debt settlement and debt elimination.  A good counselor can explain these differences and help you weigh the pros and cons.  The option that best suits you will depend on many factors related to your current financial status.