If you are seriously in debt, you may need the help of a debt relief company. These companies promise to get the creditors off of your back, negotiate for you, act as a shield of protection, and guide you to the right way to pay off that debt. Unfortunately, for a majority of these companies, the real goal is to scam you out of any remaining assets that you might have. Here is what you need to know and need to look for in a debt relief company, in order to protect yourself.
First of all, why would these companies try to scam people who are already in debt? At first look, it doesn’t seem to make sense to try to get money from people who don’t have any to spare. Unfortunately, these are exactly the people that they want, individuals and families that are so desperate for a solution to their debt problem that they don’t take the time to do the research that is needed. They also know that people in debt are at a disadvantage and tend to be in a place where they can be easily manipulated.
Debt relief companies may come in many forms and under many names. They may be called debt consolidation companies, credit counseling agencies or non-profit credit counseling agencies, debt settlement companies, debt validation companies, bankruptcy and debt lawyers, tax relief counselors, and loan modification companies, among others.
Before using the services of one of these companies, it is important to do your homework, and make sure that they really do have your best interests at heart.
First, find out if they have an actual physical address. Is their mailing address a postal box or drop box then they can shield themselves with it if they have to suddenly close down and leave without a trace. Even if you do get a street address, you should be sure to drop by to confirm it exists.
Find out if your state requires licensing or registration for this type of business, and if it does, ask the company to provide you with their registration or license number, so you can confirm it. By knowing the requirements ahead of time, you won’t be fooled if a company says that registration is not required when it is. You can also check with your attorney general’s office to see if they have logged any complaints about a particular.
Search for the company online. Check out the Better Business Bureau to see if there have been any complaints, but also google the company name. You may find people in forums complaining about the company or negative news articles about the company.
After you have checked out the company, make sure that you have a clear understanding of the services that will be provided and how they plan to accomplish your goals. Review the contract carefully to make sure that anything promised verbally is also in writing. Make sure you understand all of the fees involved, including any that you may owe to additional companies the debt relief service brings in to help.
Finally, take your time to review all of the information before you make a final decision. With debt may come a sense of urgency, but it is important that you know what you are getting into before you engage a debt relief company.