subject: Don't Get Ripped Off by Fraudulent Debt Relief Programs - Tips to Ensure a Debt Relief Firm is Legit [print this page] Don't Get Ripped Off by Fraudulent Debt Relief Programs - Tips to Ensure a Debt Relief Firm is Legit
Millions of people across the country are at this moment drowning in debt. They have used credit cards for tens of thousands of dollars of purchases that they have no viable way of paying back. For some this was due to health reasons or loss of job while for others it was just people who were not responsible with their finances. Whatever the case may be there is help out there for people who are drowning in debt to get them out of debt sooner. Unfortunately there are some individuals that have started to take advantage of this system and have used it to scam a ton of money from different people.
The legitimate companies will work on your behalf with the credit card companies and any other company that you happen to owe money to and they will negotiate a settlement price. This will lower what you owe as well as they will work to lower your interest rate so that you do not have that large amount accumulate again in a matter of months to a year. These companies do not work for free though and they will have their price included in with the settlement or you will have to pay them upon a settlement agreement.
What some individuals have been doing is posing as a ligament debt counsellor and have been collecting fee's up front. Then the person who is paying them to consolidate their debt does not hear from them again. Not only are they still in the same situation that they were before but now they are also out the money that they paid out in the first place.
If the firm asks for advance payment chances are they are not legit, also if they promise to completely wipe out your debt without bankruptcy then chances are they also are not legit. Watch out for these individuals who are only out for your money.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
