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January 11, 2011 - Lisa Goehle
Everywhere you look there are advertisements for fixing your credit. Many of these companies promise to work with your creditors and to make arrangements to fit your monthly income.
Beware all companies working to fix your credit will charge you a fee. That is how they make their money. Also don’t ever sign a power of attorney to the credit counseling company as they don’t need this to work with you and your creditors.
In a recent case an elderly couple was asked to sign over a power of attorney to the counseling company so that they could work and manage their accounts. In addition they had the couple set-up an auto draft from their checking account for $385.00 a month for their fee and another $200.00 a month for the creditors. When you read the back of the agreement it also read that the counseling company would settle at least 40% of the debt. That left 60% of the debt left for the couple to try to pay off.
Many counseling debt companies are excellent and will work with you and your creditors to fix your credit score. But beware there are many who are in it for the money and your not going to ever see the light at the end of the tunnel.
Lee County has several excellent credit counseling companies all who will meet with you in person, work with your needs and financial abilities. Don’t use out of state companies where you are a number and you never meet with anyone.
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