subject: Finding Help With Debt [print this page] More people are looking for assistance with financial difficulty as they struggle with how to take care of debt and learn how to control it. In this search, there are more negative reports going to the Attorney General's Office pertaining to the problems with companies taking advantage of the consumer's financial vulnerability. There are numerous complaints of large upfront fees being charged by some of the organizations, some consumers felt pushed into faux debt management plans, or counselors who did not provide any financial education. There are additional complaints about some companies who promise to pay creditors as a third party but are nowhere to be found after receiving the payment money.
The debt-service industry has both nonprofit and for-profit organizations who claim that they can reduce, eliminate or settle any unsecured debt. There are no quick fixes nor are there any guarantees or promises that can be made by any of these companies. With these companies working with the creditors, negotiations are being made and any company who can promise an outcome before these negotiations begin are not presenting themselves in an honest manner.
If you are searching for a credit counselor to be educated on creating a budget, controlling and/or lowering debt, you will want to do your research and seek out a qualified organization. There are some counseling organizations which are funded and counselors trained by creditors. These companies will not have the consumer's best interest foremost in the solutions. Find a credit counseling service that is run by an independent organization.
You will want to look for an organization which offers a range of support and services. Work with one who carries continued support so there is continued assistance for questions after the budget has been set up. Find a company who will work with you in person. Online and phone counselors may be able to answer some of your questions, but having that personal touch and understanding of a face-to-face relationship will create a better rapport. You will want to be comfortable asking any type of financial question to your counselor in order to set up the best program for your particular financial situation.
You will not want to commit to any type of program over the phone. Get whatever program was discussed in writing. Any plans or special circumstances should be on that written contract as well. Read over everything before you sign. Take some time to talk it over with a close friend or family member. Having a second opinion is always good when making big decisions. Anyone trying to get you to hurry and sign before giving you ample opportunity to read it through, is not acting in your best interest and you should probably keep your search for a lender going.
Do not agree to any plan that expects upfront fees for debt reduction or settlement. The Federal Trade Commission prohibits these fees from for-profit organizations that sell debt relief services over the phone or when a consumer calls in response to an advertisement.
Options are your best recourse for debt management. Know what credit repercussions you are up against with each option. Anyone who is paying your bills for you while working with creditors will be reported with a negative effect on your credit history. It is best to research all your options and then find a trusted company to work with. If you have any problems, or believe that you were misrepresented, you will want to file a consumer complaint with the Attorney General's office.
