Colorado Attorney cases

The Colorado Attorney General’s Office found that people who sign up for debt consolidation services often end up paying money without really solving their debt problems, according to the Grand Junction Daily Sentinel. The study found that less than 10% of people who signed up with 42 debt settlement and debt consolidation services between 2006 and 2008 had actually paid off debt or completed their agreements. Also, 10,000 residents of Colorado who signed up for such services paid an average of $495 for credit counseling and $1,666 for debt settlement. The average term of contracts for debt settlement was 32 months and 41 months for credit counseling. The attorney general’s office cautioned people not to consider these services as a quick fix to their debt problems. If you are considering using a debt settlement or debt consolidation service, keep these things in mind such as Avoid companies that require you to pay a lot of upfront fees, Avoid companies that tell you to stop paying on debt, You can get debt counseling to improve your finances without having to pay for a it and Look for a nonprofit debt counseling firm that waives fees or offers reduced rates for financial hardship cases. Debt help is available from many reputable companies. But not everyone offering to fix your debt woes is trying to be altruistic. If you need to file a complaint about a debt consolidation or debt settlement service you used, contact your state attorney general’s office.