Watch Out for Fraudulent Debt Settlement Services

Are you in an extremely bad debt situation? If yes, are considering debt settlement as a solution to your problem? True, debt settlement can be a viable solution to some debt problems. In fact, when done correctly, you can lower your original debt by as much as 50% to 60%. However, seeking debt settlement must be done with utmost caution.

Some consumers may feel inadequate to negotiate with creditors on their own. They might choose to seek the services of professional debt settlement agency. You can find many companies in the market offering debt settlement services and other types debt relief services but only a few can be trusted.

Some debt consolidation companies have a questionable reputation and if you’re not careful, you could end up paying even more than what you originally owe your creditors. For example, a debt settlement agency is supposed to do the negotiation on behalf of a borrower. When you sign up for settlement service, you might be told that an agreement has been reached and that all you have to do is take out a loan so you can start your way towards debt recovery.

As soon as you take the offer, you might soon discover that your chosen debt settlement company actually charges unreasonable fees and terms. In real life, some borrowers found out that for the next two years, they were only paying for the interest rate and service charges of the company. The actual settlement of their debts has yet to begin on their third year of repayment. Imagine the frustration you may feel after finding out that what you thought was a helping hand turns out to be a burden.

Many debt-settlement companies are after making money and their representatives are after the commissions they will earn if they successfully recruit a person into signing up for the service. Hence, research and comparison is truly important should you decide to acquire debt settlement.

Before signing up for debt solutions, get to know know the exact fees that you will pay from the start until the end of the repayment period. Call your creditors to confirm whether a settlement has really been made and make sure that the loan has been used to pay off your debts. You must also take the time to check from the BBB(Better Business Bureau) if there have been records of complaints against a particular company and see how the issues have been resolved.

 

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