Getting Help

If you watch television at two o'clock in the morning, you've seen the ads for companies promising to help you get out of debt, reduce your bills, and pacify the IRS. Well, this column is a warning. Most of those companies overstate in promises and understate in performance. Yes, some are legitimate, but it is really a "buyer beware" world. Where do you turn for debt reduction advice you can trust?

One of your best bets is to call Consumer Credit Counseling Services, the not-for-profit organization. They can help you devise a plan for managing your debt. Their website will end in .org, not .com. Websites ending in .org are not-for-profit organizations. Companies using .com are commercial endeavors. CCCS can begin to help you get organized. Not only are the commercial sites expensive and of varying levels of competence, but they can also completely destroy your credit, depending on what tactic they choose.

If you owe the IRS money, talk with a good CPA. The CPA can tell you your payment options.

Finally, never pay off credit cards with home equity lines of credit. Depending on your situation, some of the credit card debt could be relieved in bankruptcy. Don't risk your home to pay off your discretionary spending, even though the interest rate is better.

Now, everyone's situation is different, and it's possible that some of this advice won't work for you. However, for most people these are good initial steps.

Be prosperous!
Peggy