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Some experts caution against debt relief companies

It is no secret that debt can be extremely stressful, and as a result, a solution touting itself as "quick" and "easy" will be attractive to an individual fighting unmanageable debt. However, South Carolina residents may be interested to know that not all debt relief companies are trustworthy. New studies suggest many of these companies are actually acting in violation of legislation designed to prevent them from taking advantage of those in debt.

A 2010 law enacted nationwide made it illegal for debt relief companies to charge advance fees for service. The truth is that some of these companies continue to charge these fees in defiance of governmental regulation. Some individuals have recounted falling deeper into debt when companies requested upfront fees while telling them to default on their credit card and other bill payments. There are several reasons why this course of action can be potentially dangerous.

Most obviously, defaulting on a bill will do damage to credit scores. However, it can also open the individual up to interest, late penalties and even litigation. Far from being the "quick" and "easy" solution advertised, these sorts of companies can actually work to compound an existing problem and drive individuals further into financial insecurity.

There are many ways of dealing with debt, as South Carolina residents are doubtless aware. Debt relief companies are only sometimes on the level, so it is important for individuals dealing with debt to research all their options before deciding on a course of action. Consolidation and bankruptcy can be overseen legally and faithfully, and may prove to be a more financially responsible avenue for those in need.

Source: wate.com, "6 On Your Side Answers: Why you should avoid debt settlement firms", Don Dare, Aug. 7, 2014

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Reed Law Firm, P.A.
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Suite 301

Columbia, SC 29210

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Florence, SC 29501

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