by Alexis Cala, PICurrent Assistant Producer
Courtesy of Liz Marie
Debt settlement companies have become a source of relief for many people who have too much debt and few options left. While some debt counselors are trying to help, not all are as helpful as they may guarantee.
As unemployment rises, many people are finding that they can no longer afford the minimum payments. Instead of falling deeper into trouble, they opt for a company that promises to eliminate debt in no time. Unfortunately, some of these companies actually can add to your debt and leave you with more problems than you started with.
Recently, two large debt settlement companies, Nationwide Asset Services and Credit Solutions of America, found themselves in some hot water because of misleading information and a growing number of unhappy customers.
The New York attorney general, Andrew Cuomo, is suing these organizations for deceptive business practices and false advertising. More suites are expected to follow as well. The debt management industry has ballooned since the recession now making it easier for scammers and others to find debt saddled households just looking for help (read the full story on The New York Times).
How do I find help without getting scammed?
There are reliable nonprofit agencies out there, like Consumer Credit Counseling Service (CCCS), that can help you begin to take control of your debt and get your finances back on track. Talk with a financial counselor today!
You can also avoid scams that put you further into debt by asking the company a few questions, some of these include:
- What is the cost? Don’t pay anything to start, if there are upfront fees walk away.
- Is it certified? Certification means agency counselors must pass tests measuring experience and knowledge.
- Is it accredited? The work of an agency should be certified by an outside expert, such as the Council on Accreditation (COA). You can search the COA database of accredited organizations, here. Also, you can check out a business using the Better Business Bureau’s search tool.
Check out our sister site, The Beehive, for more help from the Financial Coach and a section on debt and credit counseling.
For even more, please visit:
[...] settlement: negotiating a reasonable amount with a reputable company can help you keep payments manageable and avoid falling into more [...]