How Do I Get Out of Debt? The Answer is Not Debt Settlement Companies

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 17, 2008 -- If you are thinking of using debt settlement companies to get out of debt, think again. The Wall Street Journal reported this week that many debt settlement companies are taking your money and not settling your debt with your credit card companies. Complaints about these companies have doubled recently. In fact, the Federal Trade Commission and state attorney generals are looking into this growing problem.

There is a lot of fraud in this area when seeking for help. Many will require that you pay upfront fees into a special account instead of paying your credit card companies or lender. They promise that they will negotiate reductions and settlements on your behalf. But many struggling debtors are finding themselves with nothing by empty promises and more debt. Even worse, the activity can result in even lower credit scores and potentially higher taxes.

So How Do I Get out of Debt?

Credit card companies are telling you the answer which is to work directly with the creditors. Self negotiated workouts and settlements are 25-50% more successful than those made with debt settlement companies. Think about it. If you add a middleman to the process, both you and your credit card company lose out because some money has to go to pay the middleman. Plus, these companies have not nearly as great an incentive to solve your debt problems as you personally do.

Now, there is the right way to do this so that you succeed in actually solving your debt problems. If you go about it in the wrong way, you will only end up wasting your time and highlighting your problems with your creditors. For example, you want to focus on debt reduction and not consolidation and insist on keeping your discussions to reducing or eliminating your debt obligations.

Scott Stephen, a noted expert on advising consumers on how to effectively deal with credit card companies has studied documented cases to determine exactly what techniques work and which ones can actually hurt you. According to Scott, by learning the psychology behind these companies you can succeed in getting out of debt very quickly.

In summary, take control over your own financial problems and know that there are proven ways for how to get out of debt fast and through your own efforts. Beware of debt settlement companies and do your homework on them before you decide to trust them with this very important matter in your life.

Tired of the stress of credit card debt? Take action now and eliminate 95% of your debt with secret tactics and a proven method for How Do I Get Out of Debt fast.

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