Debt Relief Companies: Fear or Freedom |
By Alexander Carl on March 29, 2010
Fear or Freedom: The Debt Relief Story
If you’ve watched daytime television recently, it’s hard to avoid them. They’re a three-ring circus of fear and spectacle: where grinning Great Whites and singing repo men entice you to call an 866 number. They sell you an abstraction called ”freedom” to the tune of a gospel choir. These are commercials for debt relief companies.
But can this circus live up to its barkers? Can it cage you from sharks and make collectors quiver in terror?
No matter what a debt relief agency claims, it is up to you to investigate.
If it’s too good to be true, it is. If the agency claims to greatly reduce or eliminate your debt through a tiny monthly payment, something’s likely amiss. These sorts of companies are more interested in making a profit off what you have left than serving you. Don’t let your emotions interfere with your decision making— which is what the TV ads try to do.
Is the company real? There are a startling number of scams out to take advantage of the most vulnerable of debtors. Overt compassion may be a front for taking your check and disappearing. Work through the FTC or the Better Business Bureau to explore a potential agency.
What’s your plan? Don’t go with any debt relief companies because their ad has the coolest stock footage. Like everything else in life, you must shop to find what will work best for you. MSNBC reports that an agency should spend at least 20 minutes reviewing your finances before making you an offer. Any less points to a scam.
Could counseling work? There are non-profit groups dedicated to serving people who are in desperate need of negotiating and debt restructuring. It’s possible that they could be as effective, or more so, than the commercial groups. There are also lawyers who specialize in working with credit card companies.
There are workers out there who know the system and would like to act as your agent. Debt settlement is a realistic practice, but the details depend on the case. The trick is telling a cage apart from another shark— that responsibility rests with you.
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