What about the $2.6 Trillion in Consumer Debt?

[Dec 20, 2008.]

 

It’s amazing to think about that number, $2.6 Trillion!  That is a whole lot of dough and there are households all over the US that are in the red.

It is no surprise that we are seeing a flood of debt consolidation companies flooding the advertising scene, both online and offline.  The promise of financial freedom with limited restrictions is all to alluring to the average customer who is drowning in debt and is overwhelmed by the mounting bills.

When you have such a desperate crowd of homeowners out there looking for answers, a criminal crowd rears their ugly head looking to take advantage of this desperation.  Homeowners should look at the not so spectacular track record an average debt consolidation company has with the Better Business Bureau’s around the country before putting their financial lives on the line.

A great example of this is Lawyer Laura Hess from Florida whose law firm allegedly stole millions of dollars from her clients who believed she was paying their credit card bills.  Hess’ customers we making direct deposits into her account with the understanding she would pay their debts and reduce their balances.  The reality was that the bills were not being paid and her clients were suffering with decreased credit scores and thousands of wasted dollars spent on a scam.  A few credit companies involved with this scam, all be it indirectly, have stepped up to and reversed some late payments in an effort to correct the wrong doing of just one individual.

Hess has been banned from working with debt related businesses and has placed the blame on getting in over her head!  That is just too bad for all those customers who trusted her with their financial lives.

http://www.nbc6.net/news/18148107/detail.html
http://www.whnt.com/Global/story.asp?S=9512936

 

About Author:

Brent Lane is a Mortgage Consultant in Roseville, California. He helps homeowners in California with their mortgage financing and writes on his BLOG at www.thelanegroup.blogspot.com