subject: Signs Of A Fraudulent Debt Settlement Service [print this page] In the US, the financial crisis left many people with debts because of the massive employment layoffs. Many considered debts manageable if only they didnt suddenly face higher interest rates or reduced income. People feel uneasy about debts these days because debts ultimately boil down to you paying off the debt amount or to you facing bankruptcy.
As the economy recuperates, many are now gearing up to pay off or settle the debts they incurred. If youre thinking of settling your debt, consider getting financial counseling first. Even if you have good financial sense, counselors may give you much-needed advice on how to settle debts faster. In some cases, they may even prevent you from getting into more debts.
If you plan to hire a debt settlement company, make sure to choose a legitimate company. Unscrupulous businessmen are everywhere, and its a good idea to stay away from them. The following are signs that the debt settlement company youre dealing with cant be trusted.
The company guarantees to eliminate all debts
A debt settlement service is about paying off debts, not eliminating them. Its not possible to eliminate or cancel your debts. A debt, no matter how large or small, needs to be paid off. If the company says that it can help you cancel your debts with paying off your creditors, the settlement company is not worth your time.
The company asks you to give them money right away
A legitimate debt settlement service does not usually ask for the clients money at the onset, for obvious reasons. Most debt settlement companies instead talk about strategies on how you can save, find means to re-formulate your monthly budget, and draw a contract for you to sign. You should be wary of companies that are too eager to take your money because they may just disappear with it.
The company tells you to halt all communications with the creditor
A good debt settlement service will want you to check with the creditor so you can keep better track of your debt. This step will also help the debt settlement company to build a good reputation with their clients, because they see the results of the companys efforts. If the debt settlement company proposes to do otherwise, walk away from the deal because dealing with such a company is too risky.
