Debt Counseling Services

Debt Counseling Services

There is not only a shortage of money these days,

there's a shortage of good debt counseling services.

Of course, you see plenty of TV and online ads which

makes the average consumer think there are plenty

around, and there are. But not all of them are bona

fide or knowledgeable.

The current economy has spawned debt counseling

services in such a rapid way, but there are many

known abuses. This is a trend not just relegated to

the credit debt industry, and is something that is

often seen in fast growing sectors. Since recent

bankruptcy laws require that a consumer go through

a credit counseling program prior to a declaration

of insolvency, the IRS has begun a crackdown on

services that are questionable. This creates something

of a shortage, but it has also increased the fly by

night services that they haven't caught yet.

Consumers should also understand that there is no

federal regulation on debt counseling services, and

only 17 of the 50 states even regulate them. There

is no real way to track companies, and it makes

finding a good one a real needle in a haystack search

for many people, who need one. Consumers can do

online research on a company, and generally the

search can be very telling for either very positive or

very negatives experiences by other consumers.

It is wise to be wary of any debt counseling service

who widely advertises on television or sends out

spam. Or at least, investigate articles about them

prior to inquiring for more information from them.

Check accreditation such as the National Foundation

of Credit Counseling, which sets up strict guideline

for its members.

Debt counseling services who claim they can wipe

out debt are some of the most dangerous, because

it simply can't be done. If a consumer considers

that even bankruptcy may not erase all debt, then

it is ill-informed to think that it can be done another

way. Debts are debts and they are on the books

of creditors. It may be that they can be negotiated

to a lesser amount, but it is rare that they can just

magically disappear.

For the consumer who truly needs debt counseling

services, it isn't as easy as picking up a phone and

using the first one in the phone book. It takes a

certain amount of diligence and time to interview

and research companies, but doing that also ensures

that a good solution can be found and a safe one.