Many debtors often will try to go to a credit counseling service in order to try to get their debt under control. This is often a last resort before they make the decision to file for bankruptcy. While this may often seem (at least on the surface) to be a great idea, the truth of the matter is that many of these credit counseling agencies are really not the source for help. In fact, they may actually be working for the same creditors who are trying to collect money from you now.

Some debt negotiation companies are legitimate. Many others, however, in their attempt to help you reduce your monthly payments and lower your debt, may get you deeper into debt by charging exorbitant fees for their services. You have to pay these fees regardless of whether or not their work helped you out. Most credit counseling agencies do not eliminate your debt; all they can do is try to negotiate on your behalf.

What makes the act of using credit counseling services even more aggravating for people is that these counseling agencies will generally charge for their work, regardless of how well they accomplish the goal of making the debt more manageable. In fact, creditors are not even required to work with them – and many won’t! So, it’s quite possible that going to a credit counseling agency will mean that you are generally just making a very expensive bet that may or may not pan out the way you’d hoped.

There are really only a few ways to completely and totally eliminate your debt. The first way is to pay it off yourself. If you happen to come into some money or speak with a skilled debt negotiation lawyer, this might be a true reality. Another way to eliminate debt is to file for bankruptcy. This may not eliminate all of your financial obligations, but it will allow you to have a fresher start and breathing room to pay back the debt you still owe.

The decision to declare bankruptcy is often a difficult one to make due to the complexity of one’s financial situation. Consulting with a good lawyer can help you make the best decision for your personal finances.

If you or a loved one are unsure of whether or not filing bankruptcy is the best option, call the Law Office of Joel R. Spivack. We’ve helped many families in Camden and Burlington counties and throughout South New Jersey solve their debt issues. We can help you, too.