Created by eno on 1 April 2008 1:45 pm EDT. Last edited by eno on 1 April 2008 1:45 pm EDT

How not to get out of debt.

Getting out of debt is a problem that is going to become increasingly difficult for most Americans as our economy goes deeper and deeper into recession and prices esclate continually due to the high price of gasoline and other forms of energy

It isn't just America that is in the throes of an ever worsening economy. The problem is virtually world wide. We are not the only country facing the mortgage problem and we are not the only country having to deal with energy related problems.

Commonly uused debt remedies

Bankruptcy

Debt elimination

Debt consolidation

All of the above are bad for consumers.

Bankruptcy - one of the worst remedies ever invented by man.

That has become even more so ever since the new bankruptcy laws took effect. It is now far more expensive to file bankruptcy than before. It has also become more difficult to accomplish and more likely than not the debtor still ends up having to pay their creditors. It is more like being on probation for a crime. That actually makes it far more unthinkable as a remedy for one's financial troubles.

Debt elimination is nothing more than a scam!

Debt elimination companies promise the moon but never deliver. Many don't even try to help but just claim they are doing a good job but never even make so much as a phone call to help those who trust them to help. The hapless debtors find out the hard way that debt elimination don't work when they get sued for a debt they thought was being properly handled and that there would be no problem. But when the creditors file lawsuits the poor debtors find that those they trusted did nothing to help them.
They end up with a judgment and a garnishment of their wages and other assets every time.

Debt Consolidation is no better

Debt consolidation can be a good thing if it is done by well recognized charitable organizations such as Catholic Charities or other such non-profit organizations which are recognized by most governmental agencies as being reputable and trustworthy. But if it is not a recognized non-jprofit then it is probably no better than any other scam and has the same limitations as the debt elimination companies. Don't do business with them.

So what is the best answer out there?

The best answer is to learn about consumer protection laws and how debt collectors and their lawyers abuse consumers and sue them in federal court for their violations of the law. You can learn how to do that without having to hire a lawyer. It isn't all that hard to do. One good company who that can teach you how to do that is known as Creditwrench and they are reliable and inexpensive. Before you try other unreliable tricks you should contact them as soon as problems arise so they will have a much better chance to work with you and teach you how to win in court without lawyers.