Over the past months unemployment and housing troubles have caused many homeowners to become reliant upon credit cards or simply exhaust their funds to the point that they have allowed a large amount of debt to accrue, which obviously has led to many people searching for debt counseling services in order to get their financial life back in order. Luckily, some homeowners who faced financial troubles due to the recession or unemployment have been able to rebound and now find themselves in a better position then they once were.
Yet, there are various debt counseling services and national credit counseling opportunities that can help homeowners with a variety of debt trouble. Many have seen trouble with credit cards, foreclosure, college expenses, or simply the inability to make their mortgage payment. Debt counseling services can help individuals in these situations, but there are some warnings before someone proceeds with a particular debt counseling service or agency.
The FTC warns about many fraudulent services that help individuals who are seeking debt counseling. There are free debt counseling services available, but many are disguised in the form of these free services and will require payments or fees later on. Also, there are certain promises that debt counselors will make in order to hook someone who is in need, like guarantees that debt can be paid off with minimal loss on the part of the debtor.
While there are some cases where an individual seeking debt counseling may be able to talk with their creditor and have the total amount they owe dropped, agencies or services who guarantee that this can be done can cause trouble down the road as they often require that the debtor make payments to them, which they will then make to a creditor. This can cause payments to be late, or there may be fees charged, so individuals who are looking for debt relief services must be on guard.
While the debt counseling service someone chooses is strictly a personal decision, doing research on a company or agency that offers debt counseling plans that are too good to be true, charges excessive fees, or takes percentages of money you have saved on debt may not have their customer’s best financial interests in mind. Each individual’s debt situation will differ, but counselors often advise those seeking debt relief services to look online and locally for companies who offer this type of assistance and then research companies that seem most reputable before choosing a debt relief service.