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Q. I am $55,000 in credit card debt do to this recession. I found a web site called creditcardsolutions.com. They say that they can eliminate my debt to zero by using the federal laws to sue the creditors. I know this will lower my credit score. I do not know what to do. My wife is afraid that this is a scam.
I pay $ 1145.00 amonth just on my credit cards. I also have a mortgage payment of $1700.00 a month.
Please tell me what to do. -Robert
A. Unfortunately, companies that advertise such extraordinary results are almost always scams designed to take your money. It's true that you can negotiate with a credit card company to potentially reduce what you owe them. Other than this tactic or filing bankruptcy, there's little chance of wiping out credit card debt.
You're right that your credit will be hurt by working with a company like this, because they usually tell consumers to stop paying their debts while they're supposedly trying to get that debt reduced. Getting behind on your payments compounds your problem because it lowers your credit score and usually gets you in more trouble with your creditors.
Don't believe the outrageous claims they're making, and definitely do not send them any money. The right way to deal with your credit card debt is to negotiate directly with the credit card companies, or to seek help from a not-for-profit credit counseling agency.
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Tracy Coenen is an On The Money contributor, fraud investigator and forensic accountant, and is the author of Essentials of Corporate Fraud. 
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