Four Tips for Selecting a Legitimate Debt Settlement Program

Outsourcing, globalization, the housing bust, and rising interest rates have all combined to put a lot of people deeply in debt. Worse yet, many Americans who find themselves in trouble are used to being seen as pillars of their communities - they were doing great in the 90s! - which makes being in debt so much more humiliating, and makes the people who find themselves in that situation all the more desperate.

The truly sad thing is that businesses will always pop up to take advantage of desperate people. Debt settlement firms, for the most part, are reputable businesses with the legitimate goals of 1) Helping people, and 2) Making money. But especially in the aftermath of the disastrous bankruptcy reform laws of 2005, more and more people are looking for a way to get out of debt, and thus, more disreputable firms have come into the market to take advantage of these people. If you find yourself in such a situation, here are some tips to help you avoid scam artists posing as legitimate debt settlers:

The company should offer a free consultation: This is the industry standard. Anyone who expects you to pay up front is not on the up-and-up. In fact, a legitimate debt settler will need to somewhat thoroughly evaluate your financial situation to make sure that debt settlement is right for you in the first place.

The company should also offer credit counseling: This means that they should do more than just settle debts. Credit counseling entails a complete assessment of your financial situation and the dispensing of advice on how to proceed. Be wary if they only seem interested in steering you directly into debt settlement when there could be a better solution for you. Remember, there are other solutions to your problem if debt settlement isn't right.

Beware of "too-good-to-be-true" offers: If they claim that they can solve your problems by saving you an outlandish amount of money (like 90%) or without hurting your credit, they are lying. Also, debt settlers are not able to prevent you from getting harassing phone calls. Only you can do that, and only once you've made up your mind to not pay the debt.

The company should be a member of TASC: Membership with the TASC (Trade Association of Settlement Companies) indicates that the company is held to certain professional and ethical standards. If a debt settlement company is not a member of the TASC, it is an almost sure sign that they are a fly-by-night operation.

After meeting with a debt settlement company, you may find that debt settlement is not for you. There are other options, such as credit counseling, debt management, negotiating with your creditors, and even bankruptcy. Don't let a debt settlement company steer you into their program when it may not be best for you. Just click around Debt Relief USA to learn more.

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