Reported by NESG | by Brandon Runge | Updated: 06/23/10
The idea of being debt free sounds like a dream in the not so near future for many. With today’s economy struggling to pick itself up and with many still unemployed, how can one get out of debt? While a simple question to ask, the answers are not so clear.
Many of us have driven down the road and heard advertisements state that: “If you are struggling with credit card debt, a simple call could save you thousands of dollars. Call today for a free consultation!” The validity of such a proclamation raises our eyebrows. However, if may people are finding a way to get debt free, then how are they doing it? There is no singular answer to this question, but there are a few options if you find yourself in this position. One option is debt settlement.
While debt settlement is currently getting a black eye from the media, federal legislatures, and government officials, there are some advantages if you are aware of what to watch out for.
According to the BBB, consumer complaints against debt settlement programs are on the rise. Many companies have been found taking advantage of their customers, a serious problem that should not be ignored. That said there are certain red flags to watch out for when seeking a debt settlement company.
Red Flag #1: A debt settlement company wants to charge you up-front fees.
Pending legislation currently threatens to ban upfront fees. This would essentially shut down any debt settlement company that survives on the fees they charge upon your signing up. You want to avoid these companies at ALL COSTS! They could guarantee to settle all your debt, but will they be in business long enough to do so?
Red Flag #2: A company claims a Government Bailout will make your debt go away.
NO IT WON’T! Why? Because no such government program exists and the person you are speaking with is either completely misinformed or a blatant fraud.
Red Flag #3: A company claims you’re protected because they are a part of an official organization.
The debt settlement industry has two major “associations”: TASC and USOBA. Any member of either of these organizations will tell you it’s a badge of honor and you should always try to work with a member affiliate. The truth is that neither of these organizations offers the consumers very much in the way of real protection, many of the worst offenders in the debt settlement industry are members of these organizations.
Don’t be mistaken, there are some reputable debt settlement companies out there. You just have to be aware of what to watch for when choosing one. If you are reading this and realize that you may have joined a debt settlement company that exhibits one of these red flags, don’t panic. There is a way to get out and still get debt free. Just refer to the red flags and find a debt settlement company that better suits your needs and your wallet.
Article Source: http://settleshort.com/news/?p=434