There are a slew of companies out there that claim that they can help you reduce or pay down your debt. The problem is that these companies don’t work for free. You could end up paying more to a debt repair company than to your creditors, and if the creditors aren’t getting what they’re owed, no debt repair company is going to keep them from suing you.
But debt repair companies aren’t the only ones trying to make money off your attempts to pay off your debts. The Los Angeles Times has an article about a new service from Equifax called Debt Wise. What’s Debt Wise?
“Get out of debt faster,” the brochure says.
But the fine print, which is in smaller, lighter type, makes clear that any results “all depend on you.” It says that “Equifax will not negotiate on your behalf with your lenders and creditors to obtain new or different loan or credit terms for you to eliminate, reduce or settle your debts.”
How much is this service? Only $14.95 a month. So, essentially, Equifax is offering to do something that even it admits “all depends on you,” but they are going to charge you for it. Does this make sense to anyone?
Not to me, and not to the article’s author. Sure, some people need help organizing their debts, and Equifax likens their service to Weight Watchers. But, like the author points out, why not make this service free? Why include clutter on the website for other fee-based services?
If you’re trying to pay off your debt, congratulations! Yes, I’m a bankruptcy attorney, but that doesn’t mean I think it’s the best option for everyone. Sometimes what people need is to simply buckle down, cut out unnecessary expenses, and start living within their means. Bankruptcy should be a last resort option. As you begin your journey, make decisions wisely and think about whether or not it makes sense to pay other people to help you pay down your debts.
You can read the article here.
