“Debt consolidation for free”, “no cost debt relief”, “free credit counseling to end credit card debt”, or “get out of debt fast” are sales pitches which almost everyone has heard or seen on radio, television, or in print.  These pitches should be grouped with all of the other “get rich quick” schemes and pyramid scandals that have prospered in recent decades.

The truth is if it sounds too good to be true, it almost always is.  While there are some legitimate debt consolidation companies out there, a large number of them are in fact fly by night operations in which after gaining a customers confidence, exploit and leave the victim in a worse financial state than before.  With the proliferation of website businesses, it can be very difficult to determine which debt consolidation companies are legitimate and which are scams.

Because the financial market fluctuates constantly and banking institutions, lending laws, and credit reporting agencies are constantly changing the rules, promises and guarantees of getting out of debt quickly or instant “debt forgiveness” are warning signs to avoid.  Debt consolidation and debt reduction is just that, reduction of the amount owed.  The debt still exists, but in smaller payments and with lower interest rates.

The key to reducing debt and eliminating debt isn’t a magic phone number, but a structured adjustment and manipulation of spending habits which will allow an individual or family to live within their financial means.  A large percentage of individuals can find this exceedingly difficult and end up declaring bankruptcy regardless.  Many well known and prominent people have experienced this same problem despite having millions of dollars.  Bankruptcy has not damaged their financial success.

That is because declaring bankruptcy is not the financial failure of an individual, but the beginning of creating a solid financial base from which to grow and improve upon in order to recreate a sound financial credit history.  Again the key is to moderate spending habits after bankruptcy to ensure financial stability in an unstable economy.  Banking institutions and credit unions usually have financial advisors on hand.  Many bankruptcy attorneys also provide financial advice or can refer individuals to qualified financial advisors to help clients achieve their goals.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker’s compensation and motor vehicle accident representation.

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