How to Identify Legitimate Debt Help Services

When it comes to repaying outstanding debt obligations, many individuals face the problem of not only finding the money to pay outstanding debts, but also, locating reputable debt help services to assist with the process. As more and more individuals face a growing debt crisis nationwide, for-profit companies specializing in debt help and credit counseling spring up at a similar pace. Unfortunately, the bulk of these for-profit debt help entities do not actually help consumers, but rather, cause more financial expenses, and in some cases, worse.

Avoid For-Profit Debt Help Services

As a matter of being cost-efficient and protecting oneself from unscrupulous companies, an individual should avoid most, if not all for-profit debt help services. The fact of the matter is that credit counseling, debt information services, and financial crisis counselors are widely available, free from the state and federal government. These entities can inform consumers of their rights, as well as pass along any relevant information pertinent to their ongoing debt issues. Furthermore, many non-profit debt help services are available, which perform a similar function to those offered by local, state, and federal government offices.

Consider Using Legal Counsel

Once a consumer has garnered sufficient information and perspective on their current debt situation, as well as some of the applicable federal and state laws concerning debt collection, bankruptcy, and debtor obligations, they should consider legal counsel. While debt counseling from government or non-profits can be informative, any real action or attempts to remedy outstanding debts should be done with the assistance of a lawyer. Furthermore, a lawyer can offer relevant insight into strategies to reduce debt with creditors via workouts, refinancing, settlement, and other negotiated terms. Of course, a consumer can take these steps on their own accord, but the overall large body of information and the nature of negotiations in general often result in consumers using legal counsel as finding results that are more favorable.

Signs a Debt Help Service Should Immediately Be Avoided

Information and consumer advocacy statements have been released regularly from the federal government, often via the Federal Trade Commission, and other consumer advocacy watchdog groups that warn consumers of potentially fraudulent or worthless debt help companies. These warnings typically include some of the following warning signs, which should tell a consumer to look for help elsewhere:

If a company requests payment of fees or other charges upfront before services or even a consultation occurs, a consumer should immediately look elsewhere. As mentioned above, any debt help information can be obtained free from reputable government sources. It is not uncommon for companies to collect funds and upfront payment and disappear overnight.

If a company attempts to request that a consumer take any action that is any method fraudulent, illegal, or otherwise, misrepresents one’s identity, consumers should not take such action and discontinue working with the company.

If a company requests money to repay creditors, a consumer should contact that creditor to confirm receipt of payment.

If a company is noted as fraudulent or poor on Better Business Bureau ratings or on consumer advocacy sites in your state, seek help from another source.

If a company offers any program, information, or representation that claims to get rid of debt instantly, get rid of non-dischargeable debts, or any other offer that is seemingly too good to be true, it probably is.

Getting Legal Help with Debt Help Services

As mentioned above, a lawyer is the only reputable source of representation or help when taking action to remedy one’s outstanding debt obligations. It is important for debtors to realize that the debt repair process will not occur overnight, and in turn, is a highly case-specific process. Consult with a lawyer to learn more about the process required to repair your individual debt situation.

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