Consumer Debt Relief Programs - 3 Ways To Avoid Shady Debt Relief Programs And Find Legitimate Debt Help
Online, December 8, 2010 (Newswire.com) - Debt relief programs are widely available however not all of them are legitimate. There are a few things which consumers can use as a checklist to make sure a debt relief company is legitimate. Here we will take a look at the top 3 things to look out for.
Don't Pay Upfront Fees
As of October 27th 2010, debt settlement programs are forbidden from collecting upfront fees for their services. They now much negotiate a successful settlement deal and eliminate at least 35% of your debt balance in order to collect a fee. If any company attempts to charge you an upfront fee you should refuse. These companies used to thrive off collecting upfront fees but now they must actually live up to their promises in order to get paid. This makes debt relief programs a much more legitimate option for consumers and small businesses.
Member Of The Better Business Bureau
Make sure your debt relief company is a good standing member of the Better Business Bureau. They should have at least a C rating with them. The BBB is partially biased against the debt settlement industry due to the amount of shady companies that used to exist. The good news is that with the passage of the new federal laws in 2010, debt settlement companies are a much more legitimate option due to their inability to charge upfront fees.
Ask For Proven Track Records
Legitimate debt relief companies should be more than willing to provide proven track records and client testimonials. If they are hesitant to produce such records then you should probably avoid doing business with them.
Debt settlement is seen as a legitimate alternative to filing bankruptcy. If you have over $10,000 in unsecured debt and are experiencing a financial hardship then a debt settlement can make financial sense. There are also other debt relief options to consider such as credit counseling and debt consolidation which is why it's important to explore all your options before making a decision.
Check out the following link for a free consultation from a certified debt relief specialist in your area. They will go over all your debt relief options for free.
