Bankruptcy Myth 17
Debt consolidation is always worth a try.
Debt consolidation firms are typically extensions of the credit card industry. That’s right, they are in fact the credit card industry’s last effort to squeeze money out of you. These firms, which are set-up as “non-profit” corporations, receive kickbacks in the form of “contributions” from the credit card companies. If the debt consolidators really cared about helping you out of a bind, they would negotiate with medical providers, finance companies, credit unions, mortgage companies, local banks etc. - but they wont!
All too often, a person who is eligible for bankruptcy will agree to make unrealistically high payments to the Debt Consolidation Firm only to find out that one or more of their credit card companies declined to participate in the program. The balance on the cards from the companies who opt –out of the program continues to increase.
The time and money you spend paying the debt consolidation firms often serves only to delay your bankruptcy filing.
