Debt Settlement Assistance And Bad Credit Counseling Companies May Offer Debt Relief Advice–Do Consumers Need Help?

Consumers who are struggling with debt often turn to debt settlement assistance through credit counseling companies or debt relief organizations that may help individuals either erase their debt or handle bad credit debt that is hurting their financial life. While there are numerous national debt relief companies or local credit counseling agencies across the nation, many consumers that turn to these companies may find that they could have negotiated a debt relief settlement themselves.

There are certain cases where a consumer may need professional assistance or credit counseling aid concerning their debt, but in situations where consumers are simply seeking assistance, for example, on credit card debt, there are some financial advisers who often suggest simply talking with a creditor one on one. Debt relief counseling services may charge consumers, but new rules have prevented certain companies from charging upfront fees.

This, hopefully, will cut down on the amount of fraudulent debt relief services that are taking advantage of consumers, but there are ways which consumers may get lower cost debt relief if they simply speak with their credit card company or lender before turning to a professional service. In some cases, consumers who are having a difficult financial time may negotiate an extended repayment plan, lower interest rates, or in rare cases, some consumers may have been able to negotiate a principal forgiveness on part of their debt.

Yet, in situations where a consumer may be dealing with a bad credit score and a high amount of debt, credit counseling companies or debt settlement agencies may be helpful. Over the past month, numerous individuals have seen their credit score drop for one reason or another, due in part to various economic and financial hardships. However, in these instances, bad credit debt which has been causing problems for certain consumers can be dealt with through reputable debt relief or credit counseling services.

Consumers who do opt to work with a credit counseling agency or debt relief service are cautioned to heavily research any company that has offered them the opportunity to erase their debts or have a portion forgiven. Options like the Better Business Bureau or a simple Google search will yield results for almost any debt relief service and consumers, who are in need of professional assistance, can check to make sure the debt relief service they wish to work with is reputable and will not charge them excessive fees for their help.