The economic downturn has caused many people trouble when it comes to their finances and countless Americans have found themselves in debt that may overrun their financial life. Those who have debt often turn to debt counseling services to gain a hold on their financial situation and find ways to erase debt fast. While there are ways in which one could get rid their debt in a relatively easy or timely manner, there are warnings about forming a debt relief plan that should be known.
The FTC has a set of rules, or warnings rather, that anyone who finds a too-good-to-be-true debt relief situation may be headed for trouble in their finances. Promises about getting out of debt for pennies on each dollar owed are often false promises, fees to be collected can sometimes cause any money saved on debt to be given to the debt counseling service, or companies that advise you to stop paying or talking with creditors are just a few things the FTC says should be avoided when seeking a debt counselor.
While there are debt counseling services that can be beneficial to anyone struggling with debt, it’s been common for many of these debt management services to take advantage of those who are in a bad situation. Many people are struggling just to make ends meet and find that a company who offers something as wonderful as cheap debt relief to be a Godsend, but there are those who would use these troubling economic times to simply make money.
It’s important to do research and look at different debt relief companies before one is chosen, and anyone suffering from a large amount of debt is often advised to look at various avenues of debt management outside of seeking debt counseling. Yet, if debt counseling is the route one chooses, rather than obtaining a debt consolidation loan to begin with, for instance, it’s vital that the individual with debt make sure their debt counselor have their best financial interests in mind.