Credit experts warn that some debt settlement agencies might cause more problems for consumers facing overwhelming debt.
This month marks the 50-year anniversary of the first credit cards. Back then, most people reserved them for luxury items. These days, many consumers pull out the plastic just to pay for the basics.
Linda Howland of Consumer Credit Counseling Services in Rochester said, ”When I started in this business 18 years ago people came in with $3,000 worth of debt. Now the average debt of our clients is $33,000.”
Howland said too often people seek out the heavily advertised debt settlement companies that promise to deal with creditors and reduce the amount owed.
