December 22, 2006, Newsletter Issue #43: Does Debt Elimination Arbitration Really Eliminate Debt?

Tip of the Week

In the world of finance, there are many people who play on other people's ignorance. Some would have you believe that for the price of a penny they can get you a quarter. The most vulnerable people to these types of claims are those that are experiencing financial difficulties already. When facts are twisted around, some people make poor decisions that they can never recover from.

For those that have debt problems and are thinking about going through arbitration to reduce the debt, often they are the prey of these types of predators. Many will offer services advertised as debt elimination arbitration and people will believe that they can just convince their creditors to eliminate their debts. The truth of the matter is that the only way to get out of your debts without paying at least something for them is bankruptcy, and those that fall for these types of false advertisements learn that very quickly afterwards.

Debt elimination arbitration is really just like any other form of arbitration. Two sides have their cases heard and an independent third part will provide a resolution. In these types of procedures, you can usually reduce debt substantially. However, eliminating debt through arbitration is more a part of bankruptcy proceedings than anything else. If you are looking into debt arbitration services, stay away from those who claim to provide debt elimination arbitration. They may be able to eliminate some, but not all of your debt, and is that what you thought you were getting?

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