Debt is a real stressful reality for many American consumers. No matter the reasons for your debt—unemployment, illness, or overspending—it can make you desperate. Unfortunately, there are companies out there that prey on this desperation and try to lead you down the wrong path under the guise of providing a service to help people. As you embark on your journey to become debt free, be aware of advertisements offering “quick fixes” or “easy debt relief.” Although these ads may be tempting, they rarely disclose the type of debt relief they’re offering—bankruptcy. Bankruptcy is only one option to deal with certain financial problems, and it is always considered a last resort because of the long-term negative consequences it will have on your credit.

The Federal Trade Commission urges consumers to be aware of misleading advertisements. Remember, if it sounds too good to be true, it probably is. When you see this type of language, a red flag should go up:

“Stop credit harassment, foreclosures, repossessions, and tax levies”

“Keep your property”

“Wipe out your debts! Consolidate your bills! How? By using the protection and assistance provided by federal law. For once, let the law work for you!”

 

If you’re having trouble with your bills, it’s wiser to do the following before even thinking about bankruptcy:

·        Call your creditors. They will probably rather work out a modified payment plan than not get their money at all.

·        Consult a reputable, non-profit credit counseling agency. They can negotiate a modified payment plan for you, yet charge little or no money for their services.

 

For more information, visit the Federal Trade Commission website at www.ftc.org. The FTC works to prevent fraudulent, deceptive and unfair business practices.