Debt elimination programs. Is it true that these debt elimination programs can eliminate all my debts? Yes, they can, but beware, as they can also do more damages, than getting your out of debts. There are many cases where desperate debtors especially those with unsecured obligations like credit cards, often lose more money than they originally owed. Of course there are legitimate operations, but the debt elimination industry is littered with too many scams. Personally, I?ve noticed that most of them have a few common traits. Their claims are true. But they do not tell you the whole truth. Normally, the company will instruct you to stop making all of their payments. They negotiate with your creditors with a good reduction on your debt. But at the same time, they also screw up on your credit report and credit score. In future you have to pay higher interest rates and have a much difficult time obtaining credit, such as car loans or mortgages. Another problem is most of these debt elimination programs charge a hefty fee even for a simple debt consolidation. Be wary, you might end up paying higher interest rate for your consolidated debt.