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Debt relief and debt settlement companies seek out consumers with a lot of debt and make offers of help to get them out from under the debt. The way it often starts out is after consumers get turned down for a personal loan, a mailing follows from these company offering a larger loan than what they were recently turned down for and in addition, this new offer is at a surprisingly low interest rate. A very enticing scenario that is hard to resist, especially for consumers who are already having credit related problems. So, they call the company about the offer only to be turned down for the loan but instead, are offered a debt-settlement or debt relief program and led to believe that through this program, they will be set up with payments that fit within their budget. Those who sign up for these programs are often told to stop paying their credit card bills and other debts and instead put payments in a special bank account with these companies that supposedly are going to get creditors to reduce and/or forgive the consumer’s debt. PLEASE, DO NOT DO ANY OF THIS!!!! Stopping payments directly to creditors can lead to fees and big penalties, hurt your credit score plus result in lawsuits against you. And there is no guarantee that these companies will get your debt reduced and if they do (which usually is only for the smallest debts you have and is done at the outset of your entering the program and then nothing after that…), you may end up with income tax liability based on forgiven debt that you cannot afford to pay. Before enrolling in a debt settlement or debt relief program, contact Pine Street Legal first for a free consultation to discuss options to your credit related problems at (215) 345-9214, nkanter@pinestreetlegal.com.