Who Should You Ask for Help? Credit Card Companies or Credit Counselors?
November 12, 2012
According to ACA International, 30 million Americans had accounts under debt collection in October; but critics say many of the claims are sketchy. A recent report by the National Association of Consumer Bankruptcy Attorneys said that half a million Americans are now participating in debt settlement programs but that as few as 10 percent of them are likely to emerge with a successful outcome. For those included in the "under collection" group, it may be too late to make a deal with credit card companies; but this is an option for borrowers who have only recently had trouble with their bills. Experts say trying to negotiate with credit card issuers should come before allowing the debt to fall into the hands of a debt collector. But experts warn that if a consumer's debt is so large that he or she is unable to make required payments, the next step should be seeking the help of a reputable credit counseling organization. Personal bankruptcy should always be a last resort to stop harassing phone calls from debt collectors and lawsuits that typically follow.
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