What are the consequences of using debt relief services?
FTC Consumer Alert Advertisements Promising Debt Relief May Be Offering Bankruptcy Washington, D.C. — Debt got you down? You’re not alone. Consumer debt is at an alltime high. What’s more, record numbers of consumers — more than 1.5 million in 2004 — are filing for bankruptcy. Whether your debt dilemma is the result of an illness, unemployment, or simply overspending, it can seem overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: its long-term negative impact on your creditworthiness. Bankruptcy information (both the date of your filing and the later date of discharge) stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place
