Debt Settlement Leads for Consumers |
By Kari Johnson on March 2, 2011
.jpg.aspx?width=75&height=75) Have you gotten called by debt settlement agencies, offering you their services? If you are currently drowning in debt, you may have been surprised by the fortuitous timing. On the other hand, you may have been on a list of debt settlement leads that an advertiser sold to the agency.
It may sound strange for the credit card company/bank/credit union etc. that you are indebted to would want you to settle for less than you owe, but there are advantages, even for them. Considering how much they have to pay debt collectors, they would probably lose less if they settle directly with you. And they definitely end up with more money by reaching a settlement with you than they would in a bankruptcy settlement.
So when a debtor meets certain criteria, whether it is the length of time they have been in debt or the amount of debt they have, the company may create a list and send it to debt collectors. Alternatively, advertisers may claim they can help and sell your information to debt settlement companies. These lists are called debt settlement leads.
While this may seem convenient, this also creates opportunities for companies to call with debt settlement scams that may not have been referred by the company you owe money to. In order to avoid such scams, do not give personal or financial information to anyone who calls. This does not just go for debt settlement agencies, but for anyone calling and claiming to work for a financial company, even if it is your bank. Remember, you can always call them.
Perhaps the call you receive from being on a debt settlement leads list is a wake-up call, letting you know that you need help with your debt. More importantly, it can let you know that there is help available. You can call the company you are indebted to and verify that they actually endorse the debt settlement company that called you. Of course, that never actually happens!
Also remember, this debt settlement company is not the only company you can use. There are plenty of debt settlement companies out there. Do your research and make sure you can get referrals. You also have the option of trying to negotiate your debt yourself.
As always with people who claim they can settle your debt, you need to be careful. Choosing the wrong company or plan can hurt your credit score as much as, or worse than, the debt itself. |
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