There have been recent news stories about Debt Relief groups and legal action that has been taken against them. We want to clarify the difference between Debt Relief/Settlement and Debt Management for you.

Recent news reports about the North Carolina Attorney General’s office banning a Florida based debt relief company from operating in the state has us wanting to clarify the difference between debt relief and debt management. CESI is a non-profit debt management company. There are 12 such firms across the country that help people instead of mislead them but they always seems to get a black eye because of the mess the debt settlement firms create. Here’s a few things to think about.

Under North Carolina law, and in other states as well, it is illegal to charge an upfront fee to help negotiate debts. Some companies promising debt relief claimed to be law firms. Attorney General Roy Cooper charges that’s what Consumer Law Group did, along with collecting fees but not providing services.

Debt settlement suggests you stop paying your bills, which means your late fees will increase. These companies try to negotiate lower balances although they are often not successful leaving the client with high fees and a balance that isn’t changed.

The Better Business Bureau and consumer advocates recommend “debt management.”

Think of debt management as Alcoholics Anonymous for people with high credit card debt. The program requires participants to stop using their credit cards while on the program and go through financial education courses to learn how to live without credit cards and live on a budget. The program ensures timely payment to creditors which often boosts credit scores and bargaining power with creditors. Companies pay the fees for the service.

CESI has helped 120,000 people in our 12 year history prevent foreclosures, pay off debt, and start a new life debt free with sound money management skills.

Don’t be misled with false promises. If you need to turn things around, turn to CESI.