Some 82.5% of website-based debt relief operations were debt relief SCAMS, according to a report commissioned by comprehensive report conducted by HonestDebtReliefReviews.Org
Just 17.50% were legitimate debt relief operations described as fairly reliable although of varying quality.
Consumers attempting to avoid bankruptcy often experienced further financial loss, incompetent advice and forced into insolvency.
Some cause people to deteriorate further down to a worse financial condition and greater hardship which often force them to file bankruptcy, when, in fact, their purpose for going for the debt settlement option, in the first place, had been to avoid filing for bankruptcy.
Nationwide regulators and legal authorities are concerned that a great and increasing number of companies which operate in the debt cures business today, are scam debt relief operations that are out to cheat and dupe an overburdened debt-ridden population.
For that reason Attorney General of New York State, Andrew M. Cuomo, declared a nationwide review on May 7.
There is no secret that many people are stuck with a credit card debt they can no longer handle. Some sadly though that the credit card would help them through a slump that the didn’t realize would bit as hard as it did. Others had debts easily manageable until their high incomes were lost.
“With so many companies out there, they all soon start looking and sounding alike after a while, as are their TV, radio, and newspaper ads. So, how in the world can the average person tell the good debt relief companies from the bad ones” states (HDRR) REVIEWERS.
“Consumers seem more and more today to be turning to debt relief organizations for ways to pay off debts in response to the current American economic recession” states HDRR.
“Most of those companies in the debt relief market place, are competing to out do each other in their claims — in constant advertisements on the Internet, radio and TV”
“Consequently, finding a truly good debt settlement company by a consumer under such circumstances, is not at all an easy task.”
The HDRR review used a rigorous “Key Evaluation Criteria” or KEC. Companies were ranked on their professionalism, reliability and credibility as well as accreditation by the Bureau of Better Business and debt relief industry.
Fees, results achieved, and background checks on personnel expertise, training, industry service and customer satisfaction.
So are Debt Relief Companies worth it?
“Using a debt settlement or consolidation company could be a viable and fruitful option for you” stated Dr. Anosike, the HDRR research director.
“Debt settlement is often a very good idea for individuals who are having difficulties with keeping up with outstanding overwhelming credit card debts that never do seem to go away” said Dr Anoslke
They are useful for people prepared to make a negotiated arrangement with the creditor for easier and more manageable repayments, or want to avoid bankruptcy, he said.
The Critical Finding and Lesson from this Review…
HSRR points out that any positive outcome from a negotiated settlement depends on the choice of company It is essential people do a great deal of investigation and research on the companies involved in the industry.
Armed with the right knowledge customers should be the victors in getting better debt settlement deals and terms, Dr Anosike said.
A review of your options also includes knowing precisely how much you owe. This helps you know what progress you are making and what you are capable of doing. When finances go wrong the pain of facing reality can motivate you to put it in the too hard basket. It may not be fun but sometimes you simply must recognize how bad the situation is before you can do anything about it.
There is also the harsh truth that some people must decide if make a payment or eat.
Even if you do not have a card debt, knowing the real cost of an item after interest may persuade you to pay cash in future. Knowing your true financial position is good practice even if you are debt free. It helps you be a more effective shopper and discourages you from unnecessary impulse buys.
Should You Use A Debt Relief Agency?
A creditor would rather get some money out of you than none at all. When faced with an insurmountable debt, it is easy to assume you must file for bankruptcy. Yet some jurisdictions offer support, often through non-profit organizations, can give you guidance to control your debt or advise you of your options. Often these organizations are completely free.
In contrast to Dr Anosike, Suze Orman strongly recommends that customers negotiate with their creditor if they are able to make a settlement.
However, she recommends very clear guidelines to prevent being penalized in the future.
There is nothing that will replace will-power and discipline. However, these alone are not enough. In the minefield of legalities and heartbreak, it is both hard to think clearly and find room to maneuver.
Orman points out that a lot of agencies require an upfront fee – which you probably don’t have and take a commission with moneys you save with them before the account is settled.
She insists you never make your payment with your personal bank account, any check must have instruction that the organization cashing the check accepts that the debt is paid in full and that records state that the debt is paid in full. The word settled must not occur in the records or you will be seen as a high-risk debtor in future.
