FEDERAL TRADE COMMISSION
ADVICE ON DEBT RELIEF
Recently the Federal Trade Commission, the government agency responsible for protecting consumers, issued a bulletin entitled "Knee-Deep In Debt" which discusses the problems some consumers face who are over their heads in debt. Following are excerpts from the FTC's Bulletin:

"Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?

You're not alone, many people face financial crisis at some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or simply overspending, it can seem overwhelming, but often can be overcome. The fact of the matter is that your financial situation doesn't have to go from bad to worse.

If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation or bankruptcy. How do you know which will work best for you? Depends on your level of debt, your level of discipline, and your prospects for the future.

CREDIT COUNSELING

If you aren't disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counseling service. (LAWYERS UNITED FOR DEBT RELIEF IS A CREDIT COUNSELING SERVICE SUPERVISED BY ATTORNEYS.)

A successful repayment plan requires you to make regular, timely payments, and could take 48 months or longer to complete. Ask the Credit Counseling service for an estimate of the time it will take to complete the plan. (LAWYERS UNITED FOR DEBT RELIEF FURNISHES ESTIMATES TO EACH OF ITS NEW CLIENT.)

Some credit counseling services charge little or nothing for managing the plant; others charge a monthly fee that could add up to a significant charge over time; some credit counseling services are funded in part by contributions from creditors (LAWYERS UNITED FOR DEBT RELIEF CHARGES A FLAT $100 PER MONTH RETAINER FEE FOR HANDLING A CLIENT'S DEBTS - FOR $100 PER MONTH THE CLIENT EMPLOYS A LAWYER TO REPRESENT HIM OR HER TO DEAL WITH CREDITORS - A VERY REASONABLE FEE.)

While a debt repayment plan can eliminate much of the stress that comes from dealing with creditors and overdue bills, it does not mean you can forget about your debts. You are still responsible for paying any creditors whose debts are not included in the plan. You are responsible for reviewing monthly statements from your creditors to make sure your payments have been received (LAWYERS UNITED'S CLIENTS ARE SENT A MONTHLY STATEMENT WHICH SHOW ALL OF THE PAYMENTS BEING MADE TO CREDITORS) If your repayment plan depends on your creditors agreeing to lower or eliminate interest in finance charges, or waive late fees, you are responsible for making sure these concessions are reflected in your statement (LAWYERS UNITED FOR DEBT RELIEF ATTEMPT TO ELIMINATE THESE CHARGES WHEREVER POSSIBLE.)

A debt repayment plan does not erase your credit history. Under the Fair Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years. In addition, your creditors will continue to report information about accounts that are handled through a debt repayment plan. For example, creditors may report that an account is in financial counseling, that payments may have been late or missed altogether, or that there are write-offs for other concessions. A demonstrated pattern of timely payments will help you to obtain credit in the future."

LAWYERS UNITED FOR DEBT RELIEF IS AN IDEAL WAY TO GET YOUR FINANCIAL HOUSE IN ORDER AND AVOID BANKRUPTCY.