by Christine Kim
Saturday, July 17, 2010
ANCHORAGE, Alaska -- The Consumer Credit Counseling Service of Alaska says it's seeing a rise in the number of Alaskans pushing their debt deeper into the red, and it's happening after they seek help from debt resettlement companies.
When people settle debt, they pay a portion of what's owed and the rest is forgiven -- an attractive idea in this economy. But the Better Business Bureau says some of the services offered by debt resettlement companies can be very misleading.
When plastic gets out of hand, there's a chance it can empty out your pockets. And when that happens, CCCS of Alaska says more people are turning to debt settlement companies without learning how they really work.
"Nine times out of 10, debt settlement does not work. Every client that we have had come through our office that has dealt with a debt settlement company has received severe damage to their credit report, and most of them have had to file bankruptcy," said CCCS of Alaska's Jan Jones. "Every one of the debt settlement companies that I have pulled up on the BBB has an F rating, because they don't work."