Myth: Someone with a lot of debt, can pay a debt consolidator to eliminate all their debt.
FALSE: Everyone would love to have a company that they pay a small fee and all their thousands of dollars in debt goes away. Unfortunately debt consolidation does not work like that easily. Legitimate debt consolidation companies can combine amounts, reduce fees or interests, and help with ways to pay less money, but not all will be eliminated.
The hardest part to debt consolidation is finding a company that is not fraudulent or take your money and not do anything to help. It could be years down the road when debt collectors start looking for payment. If someone cannot pay the money they owe, then bankruptcy may be the best way to go. Talk to a CPA and attorney to find out your options before being taken advantage by the debt consolidators we all see on TV.
Need an attorney to discuss your Chaper 7 or 13 bankruptcy? Contact real estate agent Kristen Jurevich at 831.635.6719 for a great referral in the Hollister, San Juan, Aromas, Gilroy, Salinas, and Monterey area.