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Credit Card Companies May Not Be Telling You the Truth about Debt Cancellation

Debt cancellation, another new trend that helps you with debt, may not be as good as it sounds. Debt cancellation is a service that some credit card companies are offering where they charge you a monthly fee in order to handle outstanding balances on your credit cards, similar to an insurance program. It has turned into a huge industry with consumers paying $2.5 billion in fees and the card firms only paying $125 million in benefits.

A telemarketer who sells this service recently came forward to explain why he considers the sales pitch “deceptive advertising.” According to the article on MSNBC, the telemarketer claims that they are given scripts that intentionally confuse potential clients and get them to sign up under false pretenses. They make it sound like it is a free service when the companies actually charge $1 to $2 per $100 balance.

Macy’s and other companies who offer this service responded by saying that the scripts are not intended to confuse customers and that it was the telemarketer who, in fact, was confused on the program.

While the truth may not be clear, it is certain that debt cancellation is not the safest way to take care of your credit card debt. There really is no “quick fix” to debt of any kind. There is, however, a way to take care of all of your debt and the consequences that come with it. Chapter 7 bankruptcy eliminates your debt and stops wage garnishments, repossessions, and harassing creditor calls. If you need help with your credit card debt, don’t be a victim of one of these programs laden with hidden fees and lofty promises. Start looking at real options to get a fresh start.

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