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Doing Your Debt Relief Program Homework

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Have you heard this claim on the radio or TV before? Get the interest rates on your credit cards reduced guaranteed or how about this one, we will negotiate a one time settlement with all your creditors and save you anywhere from 50 to 70% of the total debt you owe guaranteed! Wow does that not just sound awesome and what really puts the icing on the cake so to speak is that little blurb in their debt relief commercial that states that their organization is non-for-profit.

It’s that last piece of the debt relief scamming puzzle that so many victims seem to be falling prey to. We instinctively hear those words non-for-profit and we think oh they must be a legitimate debt relief program. Unfortunately what you see hear and read is not always what you get as the market has been flooded by scam artists preying upon people’s financial misfortunes and making them far worse.

It’s not hard to do a search on the internet for debt relief scams and not find tons of stories from people that have fallen victim to one of these debt settlement programs. So what is a person to do when looking for legitimate debt relief programs? Believe it or not there are real programs out there that can help you get going in the right direction when it comes to handling your debt in an appropriate way.

If you do decide to pursue a program to help with your debts be certain that you understand that there will be fees associated with what ever program you go with. The company should be upfront with their fees and if there is any shadiness in their answers to your questions then cross them off your list of debt relief programs and move on to the next. The representative from the debt settlement program should take the time to get your information and learn about the debts you have accumulated, if they just kind of glaze over your information and start telling you what “programs” they are running that would be in your best interest then start running in the other direction and don’t look back!

Truth be told that when it comes to debt relief programs that most people that are seeking out these kinds of programs are looking in the wrong place. Now I will grant you that it does sound like an appealing notion to get a company to work their debt relief mojo and get you out of the financial mess you are in. Most people would actually be better off going to a credit counselor. A credit counselor should sit down with you and go through your financial situation as every one’s is unique in some form or another. The odds are pretty good that you can actually dig yourself out of that financial hole with a little guidance from a credit counselor. It may take you a good three to five years depending on your situation to actually get yourself out of that financial hole but in the long run it’s in your best interest.

I would really be interested in finding out the stats on people that have gone through a successful debt relief program or even a bankruptcy to only find themselves in the same situation a few years down the road. Where as if you were to go to a credit counselor and follow a plan that may take you a few years to get out of your debt. That process I think is the key as I think most people that choose the long way are learning to handle their money for the first time in their lives. I really believe that is the missing piece in the whole debt settlement or bankruptcy options that are so popular now a days. People are given an easy way out with no lessons being learned in the end other than to pay someone to make their debts go away.

I think especially when it comes to those people that have chosen to go down the road of going bankrupt that there needs to be a requirement that they go to a financial planning or money handling course. I’m not saying that the government needs to start a program like this but they should require it as a condition to complete a bankruptcy  order since they are the one’s wiping the debt out. There are after all plenty of community colleges and financial institutions that offer such courses already.

For those of you that are genuinely looking for a way to get out from under your financial debt woes and become financially responsible with your money and your future. A good legitimate place to start would be at the website for the National Foundation for Credit Counseling. There are a lot of really good resources there for people looking for help with their debts including a search tool to find a reputable credit counselor in your area of the country.

So if you are one of the millions of people that are in a bit of a financial pickle these days remember to do your homework when it comes to finding help with your money problems. Ask lots of questions research more than a couple of companies to find the good ones if it sounds too good to be true it is and check with your local consumer protection office or the BBB.