Bankruptcy Can Do What Atlanta Debt Relief Companies Can’t
When you think of a debt relief company, you usually think of a company that, you know, relieves debt. But believe it or not, you might be wrong.
We've all heard the claims by debt relief firms, be it on the radio, TV or our computer. They can negotiate with creditors on your behalf, lowering -- or eliminating -- the amount you owe. And they can do it all for a low monthly rate. And virtually overnight. For the many folks $10,000 or more in debt, it sounds like a miracle.
Unfortunately, it is like a miracle - in that it very rarely happens.
Here's how it really works. When you sign up with a debt settlement or negotiation company, the first thing they'll tell you to do is stop making payments on your debt. See, they want you to start saving up for a big lump sum payment - typically $1000 or more - that they'll supposedly negotiate with your creditors. But there are a couple of big problems here.
First, you'll still have to make payments - but instead of your bills, you'll be coughing up a monthly fee to the debt relief firm. So your debt will actually grow larger as interest and all those late payment fees start to add up. Already, it sounds like a bad way to lower debt. Second, most companies are very slow to negotiate with creditors. So during this time, you'll most likely be getting calls from bill collectors, hurting your credit and even facing foreclosure.
In reality, most customers end up dropping out of debt relief programs because things get so much worse before they get better - if they get better at all. If they had gone with bankruptcy, on the other hand, they could have actually started to lower debt with a realistic payment plan - without angering creditors and with the added benefit of protecting their home from foreclosure throughout the process.
Debt relief isn't really relief unless it makes things easier for you. That's why we're here. When you sign up for a free personal debt analysis with a professional bankruptcy attorney in Atlanta, you'll learn how bankruptcy can improve your debt situation. Because your hard-earned money should go towards paying down debt, not padding somebody else's pockets.