Avoid Fake Debt Relief Providers | - How Important Is Your Finance

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?Debt can turn a free, happy person into a bitter human being.?

-Michael Mihalik

After years of riding the debt train, fueled by easy credit and home-equity lines of credit, more and more families today are finally waking up and learning to take control of their finances. With the economy continuing to sputter, jobs at a premium and financial markets showing negative or lackluster growth, never before have so many Americans answered the challenge of getting themselves out of debt. The good news is there are some outstanding organizations and tools available to help families take control of their money and learn what it?s like to truly be in command of their destiny. Unfortunately, there are also a lot of scam artists and fake ?debt relief? firms out there as well.

Debt consolidation organizations fall under three categories; scam artists, for profit, and non-profit.

Scam

The first thing is to realize is these fake services come in all shapes, sizes and flavors. Many have impressive web sites full of testimonials from happy smiling couples. The claims made sound powerful. ?We owed five hundred thousand dollars! We reduced our monthly payments by 90% and paid off all of our debt in two months!?

These scammers usually want money upfront (although some will wait until later, claiming the need for ?processing fees? or ?account setup fees?)

For Profit

These are somewhat legitimate companies, which work with consumers on a debt consolidation plan. They are not flat out scams, but do try to offer a service?ordinarily for ridiculous rates.

However, the services they provide are normally not worth the prices they charge. They often suggest the consumer take on additional debt loads (why would you take on additional debt?) in the name of lowering interest rates.

While lower interest rates are good, sometimes times the real motivation of these companies is to extort their fee from the consumer. The failure rate of these companies is huge, and the Better Business Bureau gets more complaints about these types of organizations than just about any other type (except for collection agencies).

Note: There are legitimate for profit financial planners who will gladly help you devise a debt management plan. These are certified professionals. As always, check references, but these types of individuals or organizations are usually brick and mortar companies in your area locally.

Non-profit

These debt consolidation organizations normally do not charge you anything other than a small monthly fee. They are supported by the credit-card companies themselves in order to help individuals and families manage their debt and continue to pay on what?s owed. These organizations can usually negotiate to lower (sometimes eliminate) interest and work with families to put together a workable payment plan. These organizations have helped more than any other group on the list.

Stephen Craig is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow him @SCraigSEO.

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Source: http://www.howimportantisyourfinance.com/2012/09/26/avoid-fake-debt-relief-providers/?utm_source=rss&utm_medium=rss&utm_campaign=avoid-fake-debt-relief-providers

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