Personal debt is something that has caused a great deal of difficulty in the lives of numerous individuals and as a result there are many who are turning to debt settlement programs and companies as a way to find debt settlement agreements between themselves and their creditors. However, there are questions which have been raised as to whether debt settlement offers and organizations are actually helpful to consumers who are having difficulty in their personal life concerning various debts which may be causing problems.
There are some views on debt settlement which have shown that consumers may not benefit whatsoever from a debt settlement organization. Arguments that debt settlement companies may charge excessive fees, may generally be unhelpful in negotiating the forgiveness of debt, and could cause damage to one’s credit, are just a few of the negative aspects which may arise from a debt settlement agreement.
However, the FTC has implemented new rules and has begun addressing debt settlement issues which may help protect consumers from fraudulent debt relief organizations or scams which have been perpetrated against consumers to simply charge excessive fees for “debt settlement,” but in fact offer little assistance to individuals who were attempting to gain some form of control and alleviation from their personal debt.
Debt relief organizations and programs are no guarantee to solve an individual’s credit problems, as many creditors will still heavily pursue the repayment of a consumer’s debts despite the fact that the individual may be working with a debt relief company to address their problem. Yet, there have been many individuals who have found ourselves in a position were they have paid a large amount of fines and fees, which have resulted in little or no debt relief solutions and has cost them more money than had they simply paid what they owed their creditors.
There have been some consumers who have bypassed these debt relief organizations and, rather than opting for a debt relief agreement, simply spoke with their creditors to work out an agreement concerning the amount of debt they owe or a repayment plan which may be more affordable. Also, there have been nonprofit credit counseling agencies which have provided repayment plans and budgeting assistance for many consumers who may be having trouble repaying what they owe.
While there might be some helpful, and reputable, debt relief organizations which can be beneficial for consumers, settlement on debt through a debt relief organization is not always a guarantee or in a consumer’s best interest. A heavy amount of research into not only a debt relief company, but the services offered by debt relief organization as they apply to an individual’s personal financial predicament will be needed before a consumer can determine whether a debt relief company is the right route for them.
Consumers who are attempting to erase their debts do have multiple options, even if they are in a difficult financial position. However, debt settlement opportunities and programs are not something that should be entered into to lightly, but rather require research on the part of an individual if they feel that a debt relief organization is the right option for their debt repayment needs.