Consumer Debt Settlement Agreements On Personal Debt–Can Debt Relief Companies Erase Debt Obligations?

Consumer debt settlement companies often advertise a wide range of services which may be appealing to consumers who are having difficulty erasing or handling various forms of personal debt in their life. While there are some individuals who have benefited from consumer debt agreements and debt relief companies, there are a great deal of advisers and organizations who caution consumers against rushing into any type of debt settlement agreement and heavily researching any debt relief company which may offer their services.

Options for debt relief can be confusing, but sources like the Better Business Bureau do offer assistance when it comes to understanding debt relief organizations and processes related to erasing debt in general, but it still weighs on the shoulders of the consumer to look at their financial situation and decide whether a debt settlement company is their best bet, and if so, which companies will offer reputable service.

Obviously, there are numerous debt negotiation and debt settlement companies which have arisen over the past months who have nothing but fraudulent intentions when it concerns assisting consumers who are struggling with debt. While the FTC recently passed new rules which forbid debt settlement solicitations over the phone from collecting upfront fees, there are still organizations which are attempting to draw in consumers with promises of debt relief, will then charge fees, and provide little or no service.

While there are reputable companies which can assist consumers with settling debts or negotiating repayment opportunities or reductions in personal debt, consumers must be cautious as some of these services will charge excessive fees, can do damage to one’s credit score, or may simply end up costing more then had a consumer worked directly with their creditor to begin with. There are counselors who may be able to guide consumers through budgeting and repayment practices that could help combat their debt, and many of the services come from nonprofit credit counseling agencies.

Understandably, offers for debt settlement can be overwhelming as a wide variety of media outlets can be used by these companies to offer debt relief options which, for someone in a bad financial situation, may seem like a solution to their troubles, but could end up causing more difficulty down the road. Again, there are debt settlement and debt relief services which may be helpful to consumers who are facing difficulty with their personal debts, but researching these companies through resources like Google or the Better Business Bureau will be necessary if a consumer decides a debt management company is the right route for them and wish to find the most reputable organization to work with in their area.