They do work. I am niether "stupit" or lazy. I got injured last year, and though workman's comp helps, it only paid about 2/3 of my wage. It didn't take long to fall behind. I entered into a credit counseling program to help keep up on my bills. Be assured, I am still paying every dime I owe to anybody, but these programs put a freeze on credit accounts, and through the cooperation of the lenders, reduce interest rates on the accounts, until the debt is paid in full. This is not a "bankruptcy" type scenario. All of my credit accounts show up as "current" on my credit report, because I am paying them on time, every month. The payment is lower because I am enrolled in the program. These programs aren't a bad thing, and nothing to be ashamed of. I have worked my ass off for over 30 years. It only takes one accident to change everything.

deaddrunk... i am not lazy or "stupit." i am a stay at home mom and my hubby is the only one working. i don't want anyone else raising our kids and daycare costs are out of this world when you have twins and a schoolaged child. in this day and age it is HARD. we do have credit card debt but i'm weighing my options to get them paid off fast. (even though they have 0% int. for 2 yrs.) we try not to rely on the cards but in emergencies it has to be done. try living in my shoes once and see how easy it is!!!!!!!!!!!

I worked at an affiliate of Equifax for 10 1/2 years so I can answer with some authority. If you're wanting to "settle" on your bills, that's admirable; however, be prepared for what it will do to your credit report. When you open your accounts you agree to pay at least the minimum due by a certain date. Many debt relief programs negotiate a reduced payment amount so your overall payment to them will be less than the combined regular payments to your creditors. Regardless of what these companies agree to accept as monthly payment, you're still not paying the previously contracted amount. The "carry-over" amount of that payment will show as a late payment. Also, your payment sent to the agency will more than likely arrive at your creditors beyond your due date. Late payments individually stay on your credit report for 7 years. If you get on a five-year repayment plan your accounts will report late payments for years to come which in turn lowers your credit score. The 3 major credit reporting agencies do notate your accounts as included in debt reduction program, but depending on what kind of credit you may in future apply for, this will definitely affect your ability to finance.

The new bankruptcy act has spawned numerous debt relief companies. They are virtually all scams and frauds. The exception would be your local consumer credit counseling agency. These companies front load their fee. For example if their fee is $2000 and your monthly payment as they calculate it is $500 then the first four payments pay there fees. After you have paid for four months more or less and you are served with a summons you will realize these companies have no power whatsoever. Credit Card companies are not in the practice of lowering interest to these companies. I am a bankruptcy attorney in practice for thirty years. I have filed over 30,000 cases. I hear the horror stories from ripped off people day in and out. If you want help go to your local consumer credit companies. It is only a matter of time before laws will be passed to put these other frauds out of business. In the meantime don't be one of there suckers. If you want to join the scam start your own debt reduction company. Think of a fancy name to fool the guilable. Non profit means nothing. Just raise your "salary" to eat up corporate profit. Then solicit suckers with a long contract that guarantees nothing, (buried in the middle) and pays you at first before your victim realizes he has been taken. I hope these thieves burn in hell. They rip off the most vulnerable among us. It is a scheme ripe for fraud. NO Exceptions You have been warned.

As a credit counsellor for Link Credit Solutions in Canada, the majority of our clients that we aid are just at their wits ends and just need a little help to get back on their feet. They have fallen behind on their payments, and having a third person negotiate on their behalf really makes a difference. It takes away that pressure, allows for a good nights sleep and stops any harassing creditor calls. One of the reasons I changed careers was the reward of helping people that really needed it. You have to take for granted that there are people that play the system, accumulate large debt and walk away from it. But, there are a lot of people out there where bad luck has just found them. Is a Debt Relief program a scam? Well that really depends on which company/organisation you go to. It is up to you to do the research, read the contract and forge a relationship with your counsellor. Is Debt Relief right for anyone? Certainly not. There are numerous ways to tackle your debt and a good counsellor will tell you that and explain the facts. Make sure you explore all your options, and most of all do not 'bury your head in the sand'. Debt problems will not go away on their own. If anyone reading this would like advice about their situation in Canada, please visit us at http://www.linkcreditsolutions.ca