Sunday, October 21, 2012
Beware of debt settlement offers
Here’s a cautionary article by Michelle Singletary (“The Color of Money”) in section G of the Washington Post, Oct. 21, “Debt settlement is rarely a done deal”, link here.
A person with heavy debt might sign a contract with a debt counseling service, which reduces the total debt by a percent for a fee. But if the person falls behind on the reworked payment schedule to the debt consolidation company, the effect of the service is eliminated, and all the original debt comes back and is still owed.
During my “post layoff” period, I was approached to do “debt counseling” work with unsolicited calls and emails.