Is it true if you use debt consolidation svc, they want your power of attorney to act on your behalf?

I've delayed getting help for credit-card debt because I was told by one company they want my power of attorney which needs to be notarized before I can do business with them. I think that's scary!Is it true if you use debt consolidation svc, they want your power of attorney to act on your behalf?
Yes....this is true. Most want a limited power of attorney...





Stay away from any ';debt consolidation'; company that promises to cut your debt in half through debt settlement....This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator....this entire fee goes towards building a settlement account and to the consolidator's fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances...You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment.





IMPORTANT: None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.





http://online.wsj.com/article/SB12239445…


http://podcast.mktw.net/wsj/audio/200810…


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I'd advise to stay away from such firms...try entering a Debt Management Plan through CCCS...and if that won't work, then file for Chapter 7 bankruptcy...





Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They do not negotiate settlements.





They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to ';enrolled in debt management.'; This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you're enrolled in the CCCS debt management program.... Otherwise, it can be a very good way to deal with your debt.





Please note that CCCS cannot perform miracles in situations where there is an overwhelming level of debt relative to your income/assets. In general, CCCS can negotiate your interest down to just under 10% and your monthly payment to around 2% of your total outstanding balance. If this still would not work for you, then filing for Chapter 7 would be the only other real alternative.





FYI: While CCCS can be a good program, you need to be aware that this program is funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. CCCS has been accused of telling people to not file for bankruptcy when they really should. In a nutshell, if you cannot afford the payment terms negotiated by CCCS, then Chapter 7 bankruptcy might be the best option.Is it true if you use debt consolidation svc, they want your power of attorney to act on your behalf?
They should not ask for that, never heard of it. I would try something from a reputable company, and make sure that you READ everything, make sure there are no hidden fees etc...
I do not thinks so,try this one http://www.DebtFreetips.info/debt-free.htm which I have ever had good experience with.