How To Know When A Debt Relief Company is Honest

Choosing a debt relief company that wants to help you get out of debt is easier said than done. Plenty of pop-up businesses claim to have the best deals only to discover you’re paying a higher interest rate than your neighbor.

Table of Contents

Does Debt Relief Really Work?

Yes! Legitimate debt relief programs are supported by the federal government. For example, some Debt Relief companies wait for you to come to them. These companies must wait because their work is on your behalf as a negotiator. The debt relief company talks to creditors, trying to lower the monthly payment or settle on a final payment to settle the debt.

What is a debt relief scam?

A debt relief scam attempts to influence you into paying for something you don’t need. In some cases, the scammer tries to take money without giving something in return. Debt from unsecured credit cards and other volatile loan structures tends to put people into a panic, especially new credit card holders with little assets and collateral. In such situations, understanding how to file bankruptcy can be a valuable tool to have.

Like it or not, whenever opportunities arise where you MUST do something “or else,” others will try to take advantage and get the most money they can. These simple tactics can help you determine if the debt relief company you’re considering is honest.

Don’t be desperate

Debt relief scams prey on your desperation to get out of debt. Any pressure used on that pressure point is a dead giveaway like a one hit wonder. This is the worst part of the business because millions desperately need debt relief that doesn’t hurt people financially.

Avoid sales pitches

If the company has a sales pitch that promises you’ll make money, they aren’t a legitimate debt relief company. Genuine debt relief companies don’t contact people directly. They wait until you need them. In fact, charging people for debt relief services is illegal.

Debt relief is not an investment opportunity

Asking for money upfront signals that the company isn’t a legitimate debt relief program. Be careful because some companies can be very aggressive and make promises and embellishments they cannot guarantee. If you hear anything about investments, you’re in the wrong place.

The Debt Relief Process

The debt relief company you choose becomes your advocate for correcting your overextended unsecured debt. If the company doesn’t have the following process for connecting your credit accounts to their program, it could be a scam. The truth is: finding out how to know when a debt relief company is honest like the one you’ll finds at www.FreedomDebtRelef.com might save you thousands of dollars.

The first thing the company does is collect all your credit card account information so that they can log in on your behalf. As your debt relief advocate who can then take control as you stop making all credit card payments.

Second, working with you to devise a monthly payment you can afford. Then start paying the affordable payment into a special savings account. Once the savings account builds enough equity, you can take the next step.

With the special savings account as a leverage point then opens dialogues with the credit card companies and tries to negotiate a settlement offer. Credit card companies are under no obligation to agree to a settlement. However, most do because it’s less expensive in the long run to their bottom line.

Finally, you keep paying the monthly payment until all the debtors get paid the settled amount. Some accept pennies on the dollar. Others will require most of the debt repaid in full. These details depend on the debt relief company and creditor. Debt Relief programs generally go for three to five years.

Is Debt Relief Right For You?

Knowing when a debt relief company is honest will save you money and potential headaches. If the debt relief program wants money upfront, makes guarantees, or contacts you first, they are a scam. Real debt relief programs help people pay their debts, not default on them.

Author Profile

Scott Baber: Senior Managing editor

Manages incoming enquiries and advertising. Based in London and very sporty. Worked news and sports desks in local paper after graduating.

Email Scott@MarkMeets.com