When you’re in debt, you may feel desperate to get out. After all, it’s quite stressful owing money, especially if your debt is growing over time. This sense of urgency, while motivating, can lead consumers to pursue less-than-legitimate debt relief solutions in their hour of need.
How can consumers pursue legitimate debt help, especially if it’s their first foray into this world? Here’s what to look for and what to avoid when you’re in the research stages.
Characteristics of Legitimate Debt Relief Solutions
First of all, any partner you work with should have a transparent, proven track record of helping consumers get rid of debt. If you can’t find or verify the fact that a solution has worked for other people, there’s no reason to believe it will work for you. If you plug a company name into a search engine and have trouble uncovering a professional website, customer testimonials and professional accreditations, take heed. Legitimate debt relief organizations want to share their success stories.
Here’s an example from The Simple Dollar, which rates Freedom Debt Relief as one of the best debt settlement companies precisely because of its track record: “They are one of the most experienced debt relief companies out there, having settled over $8 billion in debt since 2002.” It’s a good sign when you can find information regarding a company’s history because it goes a long way in helping you avoid a scam. The Simple Dollar goes on to note that Freedom Debt Relief is “a founding member of the American Fair Credit Council.” In fact, its co-founder, Andrew Housser, is even on the board of the AFCC.
The main takeaway is that consumers can use factors like professional affiliations and proven debt relief track records to confidently choose the best solution for eliminating their debt.
Common Debt Relief “Red Flags”
Now you know a bit more about what to look for when you’re evaluating legitimate debt relief solutions. But what about “red flags” consumers might encounter along the way? According to the Federal Trade Commission, consumers should avoid organizations that engage in any of the following behaviors:
- Charges fees up-front before it actually settles your debts.
- Provides a guarantee it can make your unsecured debt disappear.
- Says it can put an end to debt collection calls and lawsuits.
- Will only send you more information about its services if you provide personal and financial information, including credit card and bank account numbers.
The unfortunate fact of the matter is that some debt relief companies are not on the up and up; they’re simply a front for scammers to collect consumers’ personal information and money.
Furthermore, there’s never a guarantee creditor will forgive your debts or agree upon a lower settlement figure. While having professional negotiators utilizing their relationships with creditors can certainly help lower the amount you owe, it’s not written in stone. Any company that makes an ideal outcome seem like a sure thing may be lying to consumers when they’re in a vulnerable position.
Debt Relief: The Final Word
Staying vigilant and on the lookout for red flags will help you discount illegitimate solutions right off the bat. Meanwhile, knowing characteristics of reputable debt relief companies will help you choose the best one for your needs. You want to choose a communicative, professional company with the tools to help you navigate the debt relief journey—no tricks, gimmicks or scams involved. Getting out of debt requires work, but the end result will be worth it.
