subject: Watching Out for Debt Relief and Debt Settlement Scams [print this page] Do they explain just how long the debt relief program will likely take or do they imply that it'll just be a matter of weeks for the potentially lengthy proceedings to culminate? Do they spell out all of the disadvantages of their proposed debt relief plan as well as the possible benefits? In the process of settlement, for example, the counselors will ask that their clients stop paying their credit card bills to underline the severity of their plight prior to serious negotiation. In the short term, most financially strapped American households would be ecstatic to see the cash freed up for other needs. Over the long term, of course, assuming the settlement negotiation creates a triumphant reduction of the overall balance amounts, the damage to the credit ratings of the borrowers should be a small price to pay for what could easily amount to thousands of dollars of savings. However, if the early research made some mistakes and the settlement approach does not work, you might have just paid to lower your own credit scores for no other purpose. Whether or not the limited information would be judged a scam or just a poor showing by ill-trained debt relief officers, it's ultimately the obligation of the borrowers to insist upon full disclosure of every action that the debt relief company makes on their behalf.
Watching Out for Debt Relief and Debt Settlement Scams
