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Article excerpt from Bankrate.com, March 3rd, 2003
How debt negotiators can crush your credit
"This firm and its ads preyed on consumers, who paid thousands of dollars to rid themselves of crushing debt," says California Attorney General Bill Lockyer. "Instead, Briggs & Baker left its customers with more debt, ruined credit histories and sometimes no choice but to file for bankruptcy."
People with just a few thousand dollars of debt would do well to steer clear of debt negotiators altogether. A debt-management program may be a better option.
When you enroll in a debt-management program, you write a monthly check to the credit-counseling agency and the agency pays your creditors. In a typical debt-management program, a card issuer will charge lower interest rates, stop charging late fees and contribute money to the debt-counseling agency. A debt-management plan usually lasts three to four years.
A visit to a reputable credit-counseling agency may help you determine if a debt-management plan might be right for you.
Be sure to choose your counseling help carefully. There are some pretty shady operators running so-called counseling agencies these days.
Conclusion
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