Debt Settlement Companies: Learn To Read Between The Lines

By: Camie Ibara
Scams are a serious threat and you will need to keep away from them, especially when you look for a debt settlement company to help you get out of debt faster.


A word of advice would be to do not identify debt settlement (negotiation) with debt consolidation.


First, keep in mind that these companies will ask you for money: once for setting up an account, and then, a fee for every month of service.


Here is how they do: they take your cash, place them in a trust account, and then they start negotiating your debt with your lenders; only when enough money are gathered in your account, they pay one of the lenders in full.


During this time, your monthly payments are suspended. Which leads, of course, to you being sued by your lenders, exactly what you could 'succeed in doing all by yourself!


Negotiating takes time; all this time, your interest is rising, late fees appear and so on. You will get buried in debts all over your head!


Of course, they will not tell you this when you go to them asking for help. You may find it out only after you sign the papers, and even then, only if you try finding answers to the right questions.


Instead of letting them negotiate the fees for you, you better do it yourself. Some of the lenders will agree to receiving a smaller payment each month, or even stop the interest.


There is no such thing as a non profit debt settlement company. So when you see the term non profit, you better think again.


By placing those money you give them in a trust account, they will actually block your cash, and you will end up to be the loser in this equation.


Do not let yourself fooled. Once you discover that you have been cheated, revoke the account you have with them and get your money back. You will not get the set up fee or the already paid monthly fees back, but, at least, you will be able to repay your debts in a more efficient manner. If you think that you have been misled by their false advertisement, file a complaint with the Better Business Bureau.


There are already some companies that were denounced at the Better Business Bureau. It is wise to stay away from names like National Consumer Debt Council LLC, in Irvine, California, Financial Rescue Services, in Burbank, California, Debt Legal Services, in Anaheim, California, or American Debt Relief, in Los Angeles, California.


Do not let yourself pressed to sign up any papers, until you are not sure that the business they run is legit and they do not try to cheat you off your money. In case you see that they are not willing to make things clear for you, just stay away and solve your financial problems all by yourself. You will be better that way!



About The Author:
Camie Ibara is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com