I continue to hear radio commercials and internet ads for "debt assistance programs" that say there is a federal credit card bailout and that "you have a right" to reduce the amount you owe on your credit cards. I have yet to find the so-called federal credit card bailout. What I have found is more concerns than answers.
If you Google "debt assistance programs," you will come across numerous websites offering to help you reduce your credit card debt. If you also add the search term "expires" to the Google search, you will also notice that there are different dates of expiration on these programs. One website said the program expires on 2/12/2010, while another website with identical graphics said the program expires on 4/15/2010. It appears to me that these "expiration dates" are nothing more than marketing ploys to get you to call sooner rather than later.
There are some legitimate debt counseling services out there. However, my experience is that most don't work and, in many cases, my clients have spent huge amounts of money (usually in the thousands of dollars) in fees with these services. Even after that, most never see any reduction in the amounts owed on their credit cards. In fact, most people end up in a worse position.
If you are looking for help on reducing your debt, spend some time budgeting and getting help from debt counseling. Don't rely on someone else to pay your debts for a large fee, particularly if they charge a large upfront fee. You are just as capable of negotiating with your credit card companies as any of these services. If you are in real trouble, though, it's probably time to start talking with a bankruptcy attorney. Most of us will provide a free consultation to help you determine if bankruptcy is the right course of action.
