Aug 01 2009
Getting Ahead With a Debt Reduction Plan
I have read a lot about the federal debt reduction initiative and I must admit none of it has been good. Their main objective seems to be to take your money from you. This tends to be more of a problem when people are looking for help. It seems like there is a scammer ready to tell you what you want to hear and take your money and run.
There is no such thing as a federal debt reduction initiative. You can use a nonprofit credit counseling company or a debt settlement company, but there is no direct government agency that is going to help you get out of debt. But if an organization is trying to appear trust worthy, it always sounds good if they sound like they are affiliated with the federal government.
If you have debt, you are going to have to decide how you want to manage it. But if you are going to seek help, make sure you know who you are doing business with. Find out what the BBB has to say and also see what the forums are saying. Just because someone has a complaint against them does not mean that they are dishonest. These orgainzations are in an unpleasant business and they are not liked by all their clients. This sometimes causes people to file a complaint. Trying to resolve the problem, will be a priority to a reputable company.
Your best option is a nonprofit organization. Rarely would a scammer go the nonprofit route. Keep in mind that just because they are nonprofit, that does not necessarily mean they are free. They do have expenses and need to make money to cover them. Credit counseling companies usually charge a setup fee of about $50 and a charge of $30-$50 every month. If they are trying to hold back your first month’s payments, look elsewhere. If you offer the federal debt reduction initiative, check it out carefully.
