To consumers struggling to make ends meet, advertisements for credit repair or debt settlement may sound like the perfect solution to their financial woes. But in some cases, these services do little or nothing for consumers’ debt problems and instead sap their finances and leave them in need of bankruptcy protection.

Before you sign up for any service that promises to improve your credit, make sure you understand the potential risks involved in such offers.

Credit repair offers (which are often scams) generally advertise their ability to “wipe out negative information” on a credit report or provide a “quick and legal” way to improve your credit. But the t

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Debt settlement companies are companies that have been formed in order to settle debt for debtors at a fraction of what is owed to creditors. A controversy has recently risen within the debt settlement industry when debt settlement companies asked for money up front before providing a settlement service. There has been so many complaints nationwide about the problem that Congress responded by passing new legislation in 2010 that directly dealt with the debt settlement industry.

In effect, the new laws passed prevent debt settlement companies from charging an advance fee before providing any services.

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