If you spend any amount of time in the car listening to the radio, it’s likely you’ve heard commercials touting the benefits of debt negotiation companies and credit counseling companies. The announcer talks about solving all your problems with a quick phone call. They appeal to the fear in those of us suffering from considerable debt.

It’s important to understand the difference between what these types of services offer and how, oftentimes, they may get you into more trouble that you are already in now regarding credit card and other mounting debts.

Debt settlement companies work on the idea that lowering the principal balance you owe may make it more manageable for you to pay your debts. The company will negotiate with your creditors and you, the person in debt, pay the company for this service.

Credit counseling companies work with credit card companies on their clients’ behalf to lower the interest rate on the credit cards you are having trouble paying. The agencies work with credit card companies to negotiate lower rates in advance; these are called “concession rates.” To participate, the client needs to pay a monthly fee to enroll in a debt management program. Further, the credit counseling service gets paid on the back end by the credit card company.

Not convinced that either of these options is right for you? Contact a debt negotiation lawyer who will fight for your interests, not his own or that of your creditors.

Bob Jacovetti helps individuals throughout the country who are in over their head in debt. He will work with your credit card companies to get your interest rates reduced. He can talk with medical providers and work out better payment plans. Further, he can discuss the benefits of bankruptcy and other alternatives to bankruptcy if you are being hounded by creditors.

Contact experienced debt negotiation lawyer Bob Jacovetti today for a free 15-minute phone consultation about your personal financial situation.