We all know the problem with debt consultants. Some of them will charge you a big up front fee, and then do nothing. They tell you they will contact your creditors to work out a plan, but they don't. I had a meeting today with a representative for a large bank and he told me quite simply that "we don't make deals with debt consultants." Sadly, people still use them, which is why here at Hoyes Michalos we've heard many debt consultant horror stories.
So why are unlicensed, for profit debt consultants allowed to run radio and television ads promising to reduce your debt, when more than 99 times out of a hundred they can't? Why doesn't the government stop them?
Great question. I was asked that question recently, and here's my answer:
In summary: I don't know why the government doesn't do anything. If there is anyone from the government reading this and they can give me an answer, please do. Call me at 310-PLAN and let me know.
For everyone else, do your research. Read our real life debt consultant stories. Before you part with your hard earned money, be sure you meet with your debt consultant in person. Don't just talk to them over the phone; meet with them face to face so you can get a full explanation of all of your options.
If they don't explain all of your debt management options, you are not getting good advice. It's as simple as that.