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There’s No Short Cuts To Getting Out Of Debt

From time to time a prospective client will come to me with lots of Credit Card debt.  They want to know what they can do to get out of debt?  My answer is always the same.  There are no short cuts. Every time they will ask if they should use one of the debt-settlement companies that you see on TV.  You know the ones that promise financial freedom.  What most of the companies do is convince you to stop making payments to the creditor.  Some have you send the money to them to hold while they try and negotiate with the creditors to take a lump sum for less than what is owed.  On the surface it seems like a good idea.  Why wouldn’t the creditor want to negotiate for something now, rather than writing off the debt completely. But reports from the Center for Responsible Lending and the Federal Trade Commission point out that debt balances increase on average ...

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