Are Free Debt Management Services Really Free?
Many people whose debts have gotten out of hand seek help from debt solutions organizations. Many of these firms can be effective in helping you plan a way out of your debt problems, but you need to set aside budget to pay for their services. With your financial burden getting heavier by the day, it is understandable if you look to free debt management plans so that you do not have to shell out additional money to solve your money woes. But are there really such a thing as free debt relief service?
There Is No Such Thing As A Free Lunch
While many debt solutions firms advertise free debt management services, however, in many instances this is just a marketing tactic to lure consumers to sign up. Perhaps you get a free tidbit of debt management advice or counseling, but this is if you avail of their other services such as a debt management plan. It may be next to impossible to find a debt solutions company that can really render an out-and-out free debt management plan since these organizations have commercial pursuits. They will charge their services for a fee in one way or another to fund for their costs of operation and make a profit. Even nonprofit debt management organizations charge fees.
What Do Free Debt Management Ads Mean?
The debt management ads shamelessly screaming “Free” often mean that these organizations are offering services that do not require any payment in advance. Just because you are not required to pay for upfront fees, you get their services for free. While you do not pay an upfront fee, they obtain their fees from the amount that you remit to them for distribution to your creditors. A chunk of this amount will go to their pockets as part of their revenue. There is nothing wrong with paying for the services that they render. What is bad is if they make these collections without properly informing you of what is happening, deceiving you into thinking that their services are really without charge. The ugly part of it is that many organizations exact extortionate percentages to compensate for their non collection of upfront fees. For this reason, many consumers find themselves still deep in debt even after signing up with and paying for debts through a debt solutions provider. A substantial slice of the amount may be going to the coffers of the company.
How Not To Be Duped By Providers of “Free” Debt Management
The word “free” is your red flag when looking for a debt solutions firm to help solve your debt woes. Before signing up, ask as many questions regarding payments as you can to clarify things. Ask the company to elaborate what is meant by their advertisement that claims free debt management and specify which items are really free. One indication that a company is legit and trustworthy is if it forthrightly reveals all the fees they charge for their services. Go for a company that could provide you a monthly statement detailing where the money you remit to them goes. With this, you can track where your money is going, how much are being paid to each of your creditor and if the company is collecting a commission from your payments, you will be able to detect that.