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Debt Settlement is an alternative approach for consumers dealing with being over burdened with too much debt and may serve as an option for those considering bankruptcy.
Debt Settlement companies negotiate with your creditors, on your behalf, in an effort to settle your unsecured debt for a drastically reduced amount. Skilled program advisers have consistently negotiated unsecured debts down to as little as 35-55% of the current amount owed.
Unfortunately, in today's economic climate there are many companies out there that are looking for a quick buck and an easy way to rip off consumers. There are many scams masked at debt relief agencies. "In today's economy consumers are demanding the most effective means to resolve outstanding unsecured debt. Debt Settlement offers you an honorable solution. If you are having trouble with or cannot afford your current monthly payments, debt settlement may be your best option." Says owner of Debt Relief Network Inc, Chip McGraw, a debt settlement company right here in Jacksonville, FL.
Be wary of organizations that:
- charge up front fees
- won't send you free information about the services they provide without requiring you to provide personal financial information, such as credit card account numbers, and balances.
- try to enroll you in a program without spending time reviewing your financial situation
Turning to a business that offers help in solving debt problems may seem like a reasonable solution when your bills become unmanageable. But before you do business with any company, check it out. Some businesses that offer to help you with your debt problems may charge high fees and fail to follow through on the services they sell. Others may misrepresent the terms of a debt consolidation loan, failing to explain certain costs or mention that you're signing over your home as collateral. Businesses advertising voluntary debt reorganization plans may not explain that the plan is a bankruptcy filing, tell you everything that's involved, or help you through what can be a long and complex process. In addition companies guarantee you a loan if you pay a fee in advance. The fee may range from $100 to several hundred dollars. Resist the temptation to follow up on these advance-fee loan guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for or accept payment until you've received the loan.
If you're thinking about getting help to stabilize your financial situation, do some homework first. Find out what services a business provides and what it costs, and don't rely on verbal promises. Get everything in writing, and read your contracts carefully. Debt Relief Network is right here in Jacksonville, FL. You can visit their website at http://debtreliefnetworkinc.com/ or give them a call at 904-527-2600. Want to teach your kids about credit early? Check out this book I wrote to teach kids about credit and money management early at www.prindlehouse.com/store.
Comments
This was a very insightful article. I had no idea the growth of debt settlement companies. It makes total sense.
Debt settlement seems to be a great alternative to bankruptcy in a time were many Americans are facing tough times financially! Debt settlement is definitely the cheapest and fastest way to get out of debt slavery, and it's nice know there are legitemate companies out there such as The Debt Relief Network operating ethically. In a time were many illagitemate businesses after a quick buck taking advantage of vulnerable consumers this is critical! Maybe there is hope for someone like me who needs help, but doesn't know who to trust? Great article!
Only thing I would add is this does hit your credit score negatively, so if you can live on beans and rice and cut way back and payoff everything on your own, you are better off.
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