Is “debt reduction” legit?
I am not familiar with that company but please be careful in choosing a debt settlement agency. There are pros and cons, and it really should only be considered if you can’t resolve your debt on your own. I wrote a chapter on debt settlement in my newest book, Reduce Debt Reduce Stress, and I advise you talk with both a credit counseling agency and bankruptcy attorney before making up your mind. Pros: Often resolve your debt for less than the full balance, allowing you to put it behind you. Avoid bankruptcy/public record Cons: Your credit rating will be trashed while you go through the program May owe taxes on the forgiven debt Could be sued Debt settlement firms can be very expensive. Avoid large upfront fees.
The definition of “Legit” is hard to explain. Debt settlement remains a highly unregulated business in America, check for BBB status and affiliation, any debt settlement organization affiliations is good also. Check for any Attorney General complaints, any complaints posted online by current or previos clients, do your homework before you sign on the dotted line.
