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What You Should Know About Debt Settlement Companies

If you have paid a considerable amount of money to a debt settlement company, but have received nothing in return, you are not alone. Far too many consumers in Oklahoma and across the United States fall victim to unscrupulous “debt settlement companies,” who promise quick debt relief in their television and radio advertisements. In their ads, they claim that they can negotiate agreements with your creditors so that you only have to pay pennies on the dollar and your past-due balances are deemed paid in full. If the promises made by debt settlement companies in Oklahoma seem too good to be true, it’s because they are. If you are struggling with overwhelming debt, contact our qualified bankruptcy attorneys at Oklahoma Legal Center to discuss how filing for bankruptcy can actually help relieve your debt.

The Truth About Debt Settlement Companies

There are two main things you should know about debt settlement companies: they will charge you a lot of money, and they will end up hurting your credit. There are two basic fee structures that debt settlement companies use, charging either up to 20% of your total debt or up to 35% on the amount of debt reduction they are able to negotiate. Many companies of this kind also charge a monthly fee of up to $90. In addition to collecting exorbitant fees, some debt settlement companies also offer consumers advice that may end up destroying their credit. For example, they may advise that you stop paying creditors and instead deposit money into a special account while they “negotiate” with your creditors. In many cases, there is no real negotiation occurring, and creditors begin charging you penalties and late fees because you are no longer paying them. In the long run, you end up paying more than you owed in the beginning, and your credit suffers as a result of failing to repay your debts.

Contact Our Bankruptcy Attorneys for Help

In 2005, the federal government filed suit against several debt management companies, including the National Consumer Counsel, AmeriDebt, Better Budget and Debt Management. According to the action, the companies were falsely promising quick and easy debt relief services that left many consumers deeper in debt, ultimately forcing them to seek bankruptcy protection. If you are having trouble paying down your debt and you think Oklahoma bankruptcy might be a viable option for your financial situation, contact our skilled bankruptcy lawyers at Oklahoma Legal Center for legal help. Our team of reputable bankruptcy attorneys can inform you of your legal options and will work diligently to help you navigate the sometimes complicated process of filing for bankruptcy in Oklahoma. Contact our bankruptcy lawyers as soon as possible and start managing your debt today.

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