How to Identify Debt Settlement Scams

Stop! No matter what, don’t join any debt settlement programs before your read this article!

If you are in debt problems and are looking for solutions, you might encounter ads and offers with something similar to this:

“We help you reduce you debt payments up to 70%”

Debt settlement agencies and sites are doing their best to persuade you and me into thinking that debt settlement is a better way to save your money on you debt payments and bills. Firstly, the 70% offers you see seem too good to be true: If those debt settlement companies can do just that, there will be a flock of people with debt problems line up for their service!

There are also agencies and sites claiming that they got your creditor calls covered and bring you peace of mind – all based on your ability to pay your debts. All sounds so easy and affordable – or are they?

One thing for sure, those agencies and sites that are using your desperation in settling your debt to scam you claim that they can see into the future and guarantee you results in 1 or 2 years. My take: bullsh*t. NO ONE can predict the future (I don’t know about gifted people who could see the future, but certainly not debt settlement agencies and sites!)

The thing is, how can they predict? Each time there are changes in the interest rates, in policies, or in a banking institutions merger, for instance, the result is obvious: There are also changes in settlement policies.

Debt settlement scammers are also offering these to clients:

• No certification by BBB (Better Business Bureau) to prove credibility and track record. Instead, they have certifications that can be get by virtually any companies, such as Chamber of Commerce and Dunn and Bradstreet.
• If you call them, they promise and guarantee future results and they are all sounds so relieving and liberating, but send a contract that mention no guarantee whatsoever of any results.
• Charge a flat commission instead of a percentage of what you save on payments and bills.
• Recommend you to join a debt consolidation program and pay your debts back in full plus interest.
• Tell you that activities related to debt consolidation doesn’t show up in your credit report (well, it DOES appear and WILL cost you much, much more than the benefits of debt settlement.
• Get you join the debt settlement program and leave you all alone (they won’t answer calls, they will make excuses, and more.)
• Drown you deeper in debt by actually doing nothing on your accounts (or not doing the right thing on yours.)

If you are ever to join a debt settlement program, you must do your homework – investigate the companies offering you debt settlement solutions: check their background, Google them, test their free credit counseling service, etc.

Here is one of a select few coming out clean: CuraDebt – many satisfied clients, local legal representation, a clean BBB rating (from 2000) and a knowledgeable staff recommending various programs most suitable for your needs. Speak with a CuraDebt counselor to review details.

Image by Don Hankins.

Practical Tips to Help You Get Out of Debt

None of us would like to stay in debt. Because when debts mount,  our good hours of sleep are disturbed and we are of the opinion that we must work some how to get rid of debt. So we would like to work on ways and means to plan and find good ideas to get rid of debt.

There are plenty of reliable and good sources available to help you to get rid of debt. Whatever may be the reason of debt, if you have your lost job because of job layoff or any other unforeseen factor, you can easily come out of the problem.

Tips to get out of debt

Here are some practical tips that can save you from the threat of personal bankruptcy:

• This is the must-do in getting out of debt: create a monthly budget for your expenses.
• After receiving your salary, sit at your desk and prepare a neat work sheet which lists monthly bills, purchase of groceries and your daily expenses.
• First consider paying off all those balances on your credit card which are carrying higher interest rate.
• Try to cut down unnecessary expenses which may include dining out frequently or some other luxury expenses.
• Always use cash in small amounts instead of using credit cards.  Use it only when you have to buy jewelry, car or a television set or such other product items which are more than four figures in amount.
• Try to maintain your credit card limit. See that your paychecks are directly deposited and keep a limit of withdrawal for each week or month.
• Evaluate your expenses and earnings and maintain an account.  The more careful you are in using your earnings, the more good for you in savings as well safe to get out of debt.

If you need help in getting out of debt…

Firstly, you should find out the sources of companies, agencies who give you proper guidance and support for you.

Secondly, approach them with honest presentation and with a sincere request to help you to get out of debt. Discuss and put forth all the necessary information that they require but ensure that you are with good and friendly people who would be willing to help you with the best remedy.

The remedy they provide should be useful to you and must not create any further debt problem to you. Therefore, you must make a good selection of debt relief company for the present and for your future financial plans.