Phony Debt Consolidation Schemes To Be On The Lookout For Part Two

In the last article I spoke about seemingly disreputable debt consolidation schemes that you should be aware of. Read on to find out more about these scams….

Meanwhile, your creditors are going without being paid. Unluckily, while you are collecting that payment, you aren’t paying your bills and you may be sinking lower and lower into debt.Instead of taking this gamble check out a nonprofit credit counseling firm that may charge you only twenty dollars, if anything. Instead of billing the debtor, these counselors will typically get what is called a fair share percentage payment from your creditors after you have been paid.

Finally, and most important, do NOT automatically trust in the debt settlement counselor who let’s you know that “We will handle everything. You should stop communicating with your creditors.” Despite the thought that the idea of not speaking to creditors and ignoring their mail sounds like it could be a real load off of your back, ultimately, it is your debt, your money owed and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.

It is important to bear in mind that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in interest and late fees are being tacked on. You also won’t know if your debt has been moved into collection.

A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may appear to be a long shot, or a pain, it is always extremely essential if you are about to miss a payment to call your creditor and say “Hey, listen, I am unable to make this month’s payment. I’d like to work something out with you.

Rapid Recovery Solution is a credit debt collection agency. You are welcome to reprint this article – but get your own unique content version here.