DEAR HARRIETTE: I have been noticing commercials for companies where they can take your debt and basically make it go away. Like, if you have a bunch of credit card debt, the companies can reduce the amount you owe and get the creditors off your back. It sounds crazy, but since there are so many commercials about it, I figure it must work. Otherwise, how could they afford to buy the commercials, right? I have a mound of debt and can't figure out how to get free of it. I'm wondering if I should try one of these things. -- Dump Debt, Jackson, Miss.
DEAR DUMP DEBT: Things that seem too good to be true tend to be exactly that. Debt settlement companies are popular in that they do help consumers to reduce their credit card debt, but typically the consumer is left with plummeting credit scores.
What experts recommend instead is to work with a federally accredited company that is affiliated with the Independent Consumer Credit Counseling Agencies. CNBC personal finance correspondent Sharon Epperson says that you want to work with a reputable company that can help you create a budget and strategically dig yourself out of debt. Typically, these nonprofit companies offer support free of charge. To learn more about the support you can get through these agencies, visit aiccca.org/.