WealthMaverick

Get your finances from "0" to "Hero"

  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Investing in Your Future
    • Estate Planning
    • Real Estate
  • Getting Control Of Your Debt
    • Advice
    • Budgeting
    • IRS
    • Personal Debt
      • Debt Help
      • Debt Consolidation
      • Debt Settlement
      • Bankruptcy
    • Quotes About Debt
    • Secured Debt
      • Boat
      • Car
      • Home Equity Loan
      • Mortgage
    • Unsecured Debt
      • Credit Cards
      • Medical Bills
      • Payday Loans
      • Personal Loans
      • Student Loan
  • Business
  • Health

Email, RSS Follow

Debt Management Companies To Avoid

Obey Warning Signs!

Image by timbarton via Flickr

Scammers Disguised As Debt Management Companies

Despite desperate appeals for help, several unscrupulous individuals, in the guise of debt management companies, take advantage of the confusion and helplessness of consumers buried in debt. They promise to help pay off your debt if you pay their hefty upfront fees. But can you entrust your limited resources to these companies? How do you pick a debt management company that would be true to their promises? Watch out for red flags that reek of fraud.

Red Flags When Considering Debt Management Companies

Numerous Pending Grievances Filed With the BBB. Before rolling up your sleeves with a debt management company, check the Better Business Bureau, the local consumer protection agency or Attorney General in your area for any negative record that this company may have. Complaints against debt management companies may not be unusual but if a large proportion of these have not been resolved, you better think twice before getting their services or you may be an addition to the statistics.

No Written Agreement And Plan. When getting the services of a debt management company, ask for a written copy of the terms and conditions of their service. Do not make any upfront payments without this. Go over the terms and if there are items that are not agreeable to you, try to negotiate with them. If after discussing terms you still do not see eye to eye, start looking for another debt management company. Besides a written contract, also ask for a written debt management plan to give you a clear picture of how they will go about your case. An absence of this plan may indicate that they do not really know what they are doing or may not be planning to do anything for you.

Hefty Charges. Although there are many authentic non-profit debt management companies, there are those that classify themselves as not-for-profit so that they can use this as a means to persuade you that their hefty fees are legit. Reputable debt management companies understand that you are in a financially tight spot and in dire need of their assistance. It is not impossible to find debt management companies that charge reasonable fees and can really deliver their tasks and help you.

Buy gold & silver bullion - Goldbroker.com

No Clear Info on How Your Payments Are Apportioned. When working with debt management companies, debtors will be asked to send them money monthly to be distributed to the different creditors. They should provide you with the accurate details of where your money is going. Otherwise, look for another firm to help you.

Suggestion To Cease Payment To Creditors. While some debt management companies offer this advice for a particular purpose, such as debt settlement, it may not be a wise idea as it can hurt your credit score. Each time you miss payment, it is reported to the credit bureau and your credit rating bears the impact.

Assurance To Clean Off Bad Record From Your Credit History. Debt management companies that promise to take out bad history in your credit record may be promising you the moon. They are not authorized to edit any details on your credit record. The most they can do is to try to ask creditors to have the negative record deleted. You can do this yourself.

With debt management companies along with fraudsters mushrooming in almost every corner of the world wide web, picking one to ask help from can be tricky; knowing the warning signs of a scammer will prove useful to avoid wasting your limited resources.

Enhanced by Zemanta
Email, RSS Follow

Related

Top Finance Book

Recent News on WealthMaverick

  • 5 Types of Unsecured Debt
  • What Is A Money Order And Where Can I Get One?
  • The Art of Budgeting
  • Pottery Barn Credit Card: Everything You Should Know
  • How to Choose a Credit Card

Archives

What would you like to know?

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 1 other subscriber

ABOUT US

Why WealthMaverick.com? We want to create a singular place online to access practical information on understanding the ramifications of debt with your financial life. We hope you find this site useful and if there is anything we can do to make it better, please let us know.

Copyright © 2021 wealthmaverick.com

About · Privacy Policy · Terms of Use · Site Map · Contact Us · Advertise

This website uses cookies to ensure you get the best experience on our website. Learn more.