Debt Relief: Options And Warning

People who have fallen behind on their bills and are facing large debt payoffs, will search frantically for assistance. In this frantic search, there have been many who have been scammed by companies promising to help clear out the debt. For more information about payday loans you can visit

There are some of the debt relief companies who are nothing but con-artists finding new ways to get a hand on your hard earned money. If you fall for their pitch, you can find yourself losing hundreds if not thousands of dollars trying to clear your debt. Educate yourself on what your options for debt relief are and shop around. Don’t feel that you need to sign on right away with any company. A company not willing to answer questions about their policies before you sign up with them is a big red flag that your best interest is not their primary goal.

There are some debt settlement companies who are making exaggerated promises to get you to sign with them. Anytime a debt settlement program is promising or guaranteeing  a certain percentage of savings, they are not telling the truth. They cannot promise nor guarantee that a creditor will accept an offer. They can give you averages of what kinds of negotiation offers have been accepted before, but cannot promise the exact results.  These companies may not be paid for clearing any debt until after the creditor has been paid. Any debt settlement service requesting to paid before hand is not following legal guidelines.

The people you talk to have been trained to pitch their service to you, letting you know that their option is the best option for your financial situation. They will give you the answers that you are looking for and redirect your questions if their answers would deter you from their program. Shop around and compare fees. Listen to what is being offered and ask questions until you are fully satisfied.

When you are looking for credit counseling, you will have non-profit and for-profit organizations to choose from. There are some for-profit ones disguised as the other so you want to do your homework. These companies want you to feel comfortable with them by telling you they are non-profit and are willing to say anything to make that happen. Many of the scam companies will request a fee in order to start working on your debt. Paying for these type of services up front are often misleading.

If you go for debt consolidation, be aware that credit bureaus report that as a negative when a third party is paying your bills for you. These companies will try to lower your interest payments with your creditors while paying the balances each month. IT would look better on your credit report if you gave that a try for yourself. Call your creditors and explain the situation you are in and ask them to lower your interest while you continue to make the monthly payments yourself. Lowering your debt will decrease your debt to income ratio and the monthly demands on your income as well.

Unfortunate circumstances such as job loss, pay cut, or medical bills can put you in an emergency situation. Talk to your creditors and tell them the truth, you might be surprised at the results that occur.