Twice a day, someone walks into the office of consumer lawyer Michael Mack, overwhelmed by credit card debt, with the belief that the only way out is through bankruptcy or credit counseling. However, an overlooked legal strategy exists that is a legitimate alternative to bankruptcy and credit counseling.
"What credit card companies and debt collectors don't want you to know is that most of your debt can be legally eliminated without filing bankruptcy or being stuck in a never-ending payment plan," says Mack, who used to represent banks and credit card companies before helping consumers.
Bankruptcy and credit counseling are both options that generally have a negative long-term effect on a person's credit report. And, because of new bankruptcy laws, many consumers are forced to pay back their credit card debt through a five-year payment plan. What most people don't know, however, is that it is possible to settle debt for a fraction of what you owe, without declaring bankruptcy or ruining your credit.
Those consumers who find themselves deep in debt must be proactive and learn about laws and practical strategies that can protect them against aggressive creditors. "Most consumers in debt can avoid bankruptcy by working out a compromise with the credit card company," says Mack, who is also known as "The Credit Man" (http://thecreditman.com), and is author of the book "How to Instantly Eliminate Credit Card Debt: Without Bankruptcy or Credit Counseling" (Microdebt, 2006). Mack goes on to say that "Most consumers don't realize they have real power. People can settle debt for pennies on the dollar and, in some cases, eliminate their debt completely without paying anything back."
How can this be so? The "dirty little secret," according to Mack, is that many creditors, when pushed, can't prove that the debt is legally owed, and there are laws that protect consumers.
"They won't freely admit that they have a real problem, so if you, the consumer, know what to say, who to say it to and when to say it, you can get the creditor to make huge concessions which can save you from financial disaster," Mack says.
Over the last 10 years, Mack has successfully wiped out more than 125 million dollars in consumer debt for thousands of consumers: "Credit card debt affects people of all ages and all professions. And many of these people would have ended up in bankruptcy court if they had not discovered a legal alternative. Very few people know this solution exists." -- NewsworthyStories.com
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