It is truly a shame that the debt consolidation and debt settlement industry has gotten such a bad reputation.
The actions of a few have made many turn away from what could be a valuable alternative to bankruptcy.
There were, and still are, scam artists out there preying on those that are in financial crisis.
However, if you know how to select a debt relief program wisely, you can get genuine help for your financial problems.
1. Your first step should be to check any company you are thinking of using out with the Better Business Bureau. This will be your first sign of trouble if any exists. If that checks out, you should then move on to doing a basic internet search for the name of the company.
2. This will likely produce two types of results. Message board posts, and service reviews. Both of which are quite valuable. By visiting these sites, you will be able to read the comments of others that have already used a debt relief service and will be able to see what their experience was.
3. Your first phone call to a debt relief company will be a strong indicator of if this is someone that you wish to work with. If they ask about your ability to pay before asking about your situation, then you may want to go ahead and say your goodbye.
What you should be asked first is what type of problem you are having, followed by what type of debt you have, and how much. Do not be alarmed when asked about particulars of your financial situation. Debt relief companies need to know this information in order to determine if, and how they can help you.
4. Beware of super low price quotes or extreme quotes of how much the debt relief company can save you. Realistically, there is only so much they will be able to do for you. Quotes of extreme savings are a red flag that they are merely trying to such you in.
Your debt very well could be settled for only a fraction of what you owe. However, that fraction is not going to be astronomically low. Watch out for those that promise more than they can realistically deliver.
There are debt relief scams, but these can easily be avoided by doing your homework before contacting a company for help.
The worst move you could possibly make is to bury your head in the sand, and hope that debt will go away on its own.
The stress caused from being in debt can take a toll on both your mental, as well as physical, health. The quicker you take action, the better off you will be.