Sometimes, you need outside help to get your credit in order. It is hard to find a company you can trust. Though debt counseling services can lend their assistance to resolving credit card debt, some companies are only interested in getting your money. These companies are able to get away with this robbery because there is no federal regulation on these services. They are free to swindle people out of their hard-earned cash, getting those individuals deeper into debt. Moreover, because so many of these companies are coming to cities everyday, you cannot keep up with who is legitimate and who is a fake. Look for these telltale signs of a bad counseling company:
1. They claim they can “wipe out” your debt
As good as this may sound, it is not feasible. Debt counseling services were originally created to lend you advice on how to pay off your debts. They can help you obtain lower monthly payments and take years off of your repayment schedule, but eliminate everything? Don’t buy it. This is just a false claim used to get more business. If a company makes this promise, do not do business with them. Other false claims include the removal of bankruptcy and liens. Also, look out for counseling services that promise to get you a credit card without a credit check. Remember: if it sounds too good to be true, it probably is.
2. Non-profit may not be legit
Quite a few companies advertise that they are non-profit companies and are only interested in helping you. Just because they claim not to be about money, their charges can be quite high. Some non-profits charge more than the for-profit organizations. Regardless of what they call themselves, they will find a way to make some money. Stick to the “for-profit” companies that charge less money and are not about stealing your earnings.
3. Over advertising can mean a fake company
If you see their ads on television or on the Internet, you hear them on the radio, and they are calling you, they are not out to help you. Overly advertised companies spend your good money on getting more business. Counseling services do not have to be seen or heard all the time to get business. The legit businesses have steady business and do not need that much exposure. They thrive on good recommendations and word of mouth advertising.
4. The best companies can be found easily
Apprehensive about looking for legit debt counseling services? Don’t be. For every 10 fake companies, there is one good company ready to help get you of debt. About 17 states do have specific regulations for debt counseling companies. The National Foundation of Credit Counseling (NFCC) is a 50-year-old organization for legit companies. You do not have to worry about them taking your money because they must abide by strict rules of conduct. Try your local Better Business Bureau for a solid referral to a legitimate company. The best companies offer free credit analyses, charge fees that are less than $20, and will do their best to help you take the right steps to get out of debt.
By Tamara C. Jude