Debt relief corporations currently subject to tougher rules

Since the recession started, people have been doing more to get rid of debt. As a result, TV and e-mail in-boxes have been inundated with ads from businesses offering debt settlement and debt consolidation loans. The debt consolidation industry had some seriously bad apples, and the govt instituted higher rules as a result. Customers have to look after what company they are giving instant cash to. Those services could possibly be all for naught.

Stopping debt relief fraudulence is the FTC

The Great Recession was a great opportunity for many corporations. Fast debt relief and debt consolidation reduction loans started to be offered. Customers were required to give an upfront fee and then make monthly payments. This would make all the debts go away for them. The companies always took the money. They would then never do any of the companies offered. After a lot of grievances to the Federal Trade Commission, new rules were imposed in late October. However, abuses have continued, and attorneys general in several states have been filing suits against the impostors. Many individuals end up falling to the scam of giving cash no in order to have debt settlement relief coming later. This is what the Financial Times explains. The money is taken by the designed "company." Nothing is ever settled though.

Many debt relief programs that have to be avoided by you

Sometimes things come along that seem too good to be true. It probably is then. If a person is thinking about consolidating debt through an agency, there are a few things to watch out for. If a company asks for an upfront fee for debt consolidation, it’s probably a scam. Non-profit businesses exist out there. Debt management is something they help with. The Better Business Bureau and the National Association of Financial Advisors are where you should check potential debt settlement companies with.

While waiting you can do other things

If you’re trying to get rid of debt like personal loans, private loans, or credit cards, you will find always things that could be done. Some creative budgeting always helps or payday loans if a buffer is needed.

Citations

FT

ft.com/cms/s/0/8b73b788-f5c6-11df-99d6-00144feab49a.html#axzz16857y44E

NAPFA

napfa.org/tips_tools/index.asp