Consumers are turning to personal debt relief services as a way to begin managing their personal finances and find affordable options when it comes to repaying various creditors. These consumer organizations which are established to help erase debt do typically come at a cost, yet, there are ways which consumers have been recently protected against fraudulent organizations which have looked to take advantage of men and women who are in a bad debt situation.
While there are numerous guidelines from resources like the FTC, new rules which are set to help guard consumers against fraudulent debt relief companies are not always a guarantee and, as a result, consumers are still being prompted to research organizations which offer to erase their debts. Typically, personal debt relief services can talk with creditors and formulate a repayment plan which is more affordable for a consumer who is having a difficult financial time. Often, these debt settlement companies will receive a payment from the consumer and issue out payments to various creditors as part of the debt settlement agreement.
For this service, many debt settlement companies will charge a fee, which has been a point where many consumers have had a difficult time dealing with fraudulent organizations. Reputable debt relief services will typically offer upfront pricing schedules or talk to creditors and formulate a debt repayment or settlement agreement before charging any fees. Last year, debt relief companies were prohibited from taking fees from consumers when they sold these debt relief services over the telephone, as there were companies who would contact consumers in a bad debt situation, make promises concerning debt settlement, and collect fees without really even helping those in need.
Yet, whether a consumer uses a debt relief service or a credit counseling agency, proper research is necessary so that consumers can not only avoid fraudulent debt relief organizations but they may be able to find a company that is a better fit for their personal situation. Obviously, consumers can Google companies that offer debt relief services or cross-reference a company’s standing with organizations like the Better Business Bureau so that they can get feedback from other clients or find warnings about companies which may not be on the up and up.
While it’s understandable that many debt relief services may charge fees for dealing with creditors and formulating an affordable repayment options for those in need, consumers can find reputable organizations that will offer them upfront pricing guidelines, locate organizations which may be nationally accredited or certified, and can also find these types of companies which will disclose where a consumer’s funds are going after they have paid their debt relief service so that they know how their money is being used.