Can You Really Erase Debt?

We've all seen and heard the TV and radio ads promising to eliminate our debt. Even though there are legitimate companies, there are things to look for and to be cautious of when using these services, in addition to better alternatives.

• If credit counselors charge a high rate, up-front-fee or make you sign a contract immediately, it is most likely a scam. Legitimate companies will not pressure you into making quick decisions.
• Some companies will only get rid of errors on your credit report that you could yourself for free by calling your creditors.
• No one can legally give you a new credit identity. Scammers will have you apply for an Employer Identification Number (EIN) and tell you to use it in place of your social security number when applying for new credit. This is illegal and could subject you to fines or prison time.
• Often TV ad companies will negotiate your debt for a lower rate. However, this often leaves you with an undesirable credit report and will make it difficult for you to obtain loans for some time.

Although it sounds good, eliminating debt usually doesn't occur overnight. Take an active approach in the process by knowing what your total debt is, your minimum balances and interest rates. You can call your creditors yourself and see if you are eligible for hardship programs. Plus, you can also visit one of our financial specialists for help and advice, or turn to our partner, BALANCE, for free and low cost confidential counseling services. They can help you develop a realistic spending and savings plan to get out of debt, improve your credit or avoid bankruptcy.

Call BALANCE toll free at 888-456-2227 or visit balancepro.net.

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