This is a Guest Post from Debbie Dragon. Debbie is a freelance writer providing articles for Billeater.com, a site that helps it’s readers save money, with unique money saving tips and tricks for your busy lifestyle.
Anyone considering using a debt relief company to help eliminate debt should proceed with a healthy dose of caution. There are many companies emerging in the wake of the recession with one agenda- to help you get out of debt while padding their bank account. It is not surprising that companies are being created to meet the demand of thousands if not millions of people who find themselves unable to repay their financial obligations and not every company is out to rip you off. With that in mind there are some things you should consider before you entertain the notion of hiring an outside party to help you eliminate debt. Here are a few tips that will help you get out of debt without getting ripped off.
- Don’t believe everything your read (or hear)- Sadly too many consumers are so eager to ease the burden of high interest debt they are willing to do just about anything to get relief. With that mind-set consumers are jumping on any available option to eliminate debt without first vetting the company with whom they will entrust their entire financial future. Take the time to carefully review each company, not only the information they provide but also references and information provided by other sources.
- Pay attention and read between the lines- Let’s face it, each company offering services is doing so to make money. With each company seeking compensation for services provided (rightly so if they perform services), it is important to pay attention to what they claim they can do to help your situation. Each debt relief method has pros and cons and most companies are making the effort to disclose these issues, however many consumers are gleefully skimming over the negative consequences with one goal in mind- being out of debt. This tunnel vision approach can be costly if you enter an agreement that you do not fully understand.
Understand what strategy is right for you- Each process is designed to help consumers with different levels of debt and financial hardship. This is one situation where choosing the wrong process will undoubtedly lead to more financial trouble in the future. For example if you are able to meet a structured repayment plan, debt settlement would be overkill in your situation. On the other hand, if you have no reasonable expectation of being able to meet your minimum payments in the future, credit counseling will only delay the inevitable. Understand your situation and select a process that will provide the best results for your circumstances.
The best way to avoid getting ripped off is by eliminating your debt on your own, however that is not the reality for many consumers. If you take the time to evaluate your situation, review each process and the company offering it, and proceed with caution you might be able to navigate through your financial hardship and find freedom from debt.