subject: Debt Relief Swindles - Why The FTC Has Cracked Down On The Debt Settlement Industry [print this page] People usually choose different scams to take advantage of other people. One of the latest scams was to use debt relief companies as a way to take advantage of people. Many companies gathered people's information and used it against them. Another method was for debt settlement companies which asked for an upfront fee before they started the negotiation. The fake companies ran with the client's money without resolving any issue. The bad thing is that people were already in a bad situation and they had to choose bankruptcy because they were losing so much money. Another effect was the fact that more and more people started to lose faith in debt settlement companies and they used the service less. Because they were choosing bankruptcy and there was no faith in settlement, the government had to do something to keep people from filing for bankruptcy.
The Federal Trade Commission managed to change the laws and to allow people who had no money for the upfront fee benefit from debt settlement too. The companies aren't allowed to ask for the upfront fee anymore. They can be paid only after they manage to get an agreement with the creditor. This not only makes people to trust debt settlement more, but it also keeps the fake companies from doing any illicit actions. The best thing is that people can choose debt settlement without being afraid that they will get their money stolen. So, nowadays this is the perfect opportunity to make sure that you manage your debt. Debt can be lost without having to go through bankruptcy, with the many solutions available.
Another thing that you need to keep in mind is finding a reliable company. These companies can make sure that you get the biggest reduction you can. Otherwise, it is very hard to obtain it by your own.
Now that you know that debt settlement is a much safer option I do hope that you will stop thinking about bankruptcy and how it can save you from debt. Debt can be managed without having to harm your financial future and your current financial situation, by following a few rules and choosing the right debt settlement solution.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
Debt Relief Swindles - Why The FTC Has Cracked Down On The Debt Settlement Industry
