Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Debt Relief Scams and How to Avoid Them

By Sethfears Subscribe to RSS | July 28th 2012 | Views:

Debt relief basically aims to provide a reduction in the total amount of debts that people owe to different parties. Debt settlement and debt negotiation are usually used for this purpose but sometimes debt management and credit counseling are also employed. Firms which provide such services to clients usually do so for a fee or commission. However, not all of these firms are genuine. During the recent recession, when many people were trapped under a huge amount of debts and looked for different ways for relief from debt, many scams in this field were recorded.

Many firms claim to reduce the debtors’ debt burden for a reasonable fee. Unfortunately, a large number of such firms do not fulfill their promises and the people who opt for their programs have to face more trouble. For example a firm might claim that they can reduce the amount of debts of their clients by half but they do not honor their claims and charge a very high amount. In other cases, there might be hidden costs associated with the program or there may be negative effects of the debt relief program on the debtor’s credit score. Whatever the case, the end result is that the debtors pay a large sum as the firm’s fee but do not get the promised services.

The debtor should follow a few simple steps to avoid these scams. Firstly, consumers should look up the Debt Relief company and check its track record by contacting the relevant authorities. Secondly, the consumers should read customer reviews of these companies and ask people for their views through online forums. Thirdly, they must read the terms of the agreement carefully and ensure that the services and fee is clearly stated. All these points are merely imperative. One needs to address such activities to actually discern between the legitimate and the illegitimate.

Alternatively, a debtor can try do-it-yourself debt relief. In this way, they will be aware of what is going on and will not have to shell out a hefty sum for the service. There are many steps which debtors can take by themselves to relieve their debt burden. These may include reducing expenses and increasing income, negotiating with creditors directly, cancelling credit cards and so on. For guidance, a financial counselor can be consulted.

Debt relief aid doesn’t just reduce your current debt sum but also gives you a margin of proper summation. You also get to learn not ti make any more repayment mistakes in the next session. You need to just exchange the debit woes and therefore it is the creditor’s duty to fulfill the chore. However a wee bit of your concern will also be appreciated after all it’s your obligation and the dilemma as well.

Sethfears - About Author:
Debt is horrid and causes reasons to hit for Bankruptcy.Yet rid of such woes by Debt Relief programs.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

Hypo Venture Capital Headlines: Know the tricks to get business loan despite debt
Published by Hypo Venture on January 14th 2012 | Business
After the recent economic meltdown, many business organizations have incurred insurmountable amount ...
Protect yourself with the debt collections harassment laws
Published by Smith Jhonson on March 28th 2012 | Business
There are many consumer protection laws that are applicable to help and provide the consumers safety...
A basic guidance to the fair debt collection act
Published by Smith Jhonson on March 12th 2012 | Business
The fair debt collection act is all about protecting the rights of the creditor and the debtor as we...
Some tips to get rid of your IRS tax debt
Published by Smith Jhonson on March 12th 2012 | Business
The IRS tax debt is such an issue that can go on for years without much progress. Here are ways to g...
A win-win situation for both an organisation as well as debt management companies by hiring a debt collector agency.
Published by Gabi William on March 27th 2012 | Business
We do all the hard work for you and approach each case very seriously - no matter what the size....
Open up your arms in collecting bad debt from customers by hiring debt collecting agencies and keep your accounts clear.
Published by Gabi William on March 27th 2012 | Business
Our team of accounting specialists makes the accounting process simple, quick and hassle free....
Fair credit reporting and fair debt collection practices are your rights
Published by Safinajones on January 12th 2012 | Business
If you have fallen victim to false credit reports or unfair debt collection practices, do not suffer...
Implement your rights with the help of debt collections harassment laws
Published by Smith Jhonson on March 12th 2012 | Business
There are numerous consumer laws that are there to protect the consumers from the unlawful and the u...