Credit Card Debt Relief Bailout and Scams

First of all if you have arrived to my blog, you are probably looking for credit card bailout or debt relief. And because so many companies have been bailed out by the federal government, there have been rumors of a credit card bailout. The main idea of these bailouts have been interest rate reductions and principle reductions. There may have been rumors before our election, that help was on the way to regular consumers like you and me. They are just rumors and any site that claims they are part of this non-existent program is probably a scam.

Unfortunately, there is no official credit card bailout plan. Even though we bailed out companies and banks with tax payer funds and gave them 0 % loans, it will not be passed back to us.

If you are struggling now financially, then you might want to consider finding a bankruptcy attorney because that is still the best debt relief available to a consumer. If you are not working because you have been laid off, downsized, etc, then the credit card counseling agencies won’t work and many of them have complaints against them. Do your research online and avoid the credit card scams.

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Jacob Marta, May 6, 2010:

Chessnoid, I know you are trying to warn your readers about false advertising and scams going on, and they do exist. However, to call all debt relief services a scam and that bankruptcy is “still the best alternative” is not sage advice.

Lower My Bills, owned by Experian the credit reporting company run massive “Obama Debt Relief” ad campaigns with landing pages asking to qualify for a “bailout”.
This is the type of advertising that needs to be critisized.

Credit Counseling is legitimate and a reasonable solution for the RIGHT financial situation – small debts, low income.

Private services like Dave Ramsey, The Debt Diet, and Suze Orman are effective “Do it Yourself” programs.

What about your traditional CPA/CFP? They have been helping people for generations to NOT go into debt.

Debt Negotiation is reducing 1 Billion dollars in credit card debt every year.

Chapter 13 – Right for some, requires you to pay your debts back IN FULL over 5 years.

Yes, there are bad lawyers, CPAs, CFPs and for every Dave Ramsey there is a kevin trudeau, but this should not mean an entire industry is corrupt.

Be very aware of what our Government is doing. They are systematically removing all Small businesss and Free marketing solutions. All in the name of “Protecting you”
Isabelle, June 12, 2010:

I saw one of those federal credit card bailout ads on TV last night. It certainly sounded too good to be true and my past experience as a consumer protection attorney made me smell a rat. I hope that the current state and federal administrations stop these deceptive ads before folks who are already in trouble dig themselves in deeper.