tattoos

Thursday, June 17, 2010

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.

No comments:

Post a Comment

 

blogger templates | Blogger