Debt Settlement is it Legal?

Opinions are galore on whether Debt Settlement should be considered as an option for elimination of debts in this volatile and unstable recession period.There are many who do believe that Debt Settlement is a scam and Consumer Credit Counseling is the best option available.Until or unless Consumers do a proper research on this subject,they would not come to know the what exactly is the truth.

Lets be clear and face facts- some who offer debt settlement are scam artists. The same can be said of all companies in all industries. Recently the owner of an major SEC-approved investment firm was found guilty of swindling $50 BILLION from investors for example, the biggest scam in American history. Even priests, teachers, and politicians have been arrested recently in America.

Try to gather all the details about the Company you are planning to sign up with. What is their track record online? What is their BBB record? Are all the questions put forward answered to your satisfaction? Are you able to reach them consistently by telephone or email? Do they have a physical address? Once you sign up do you see things happening on your account? Are your settlement funds held in your name or the company?s name? Asking these types of questions will be able to help prevent being duped.

A few other details will help insure this is the best program for you. Read the contract in detail. Ask questions to clarify the provisions. Go through the financials in detail, it should be known that every dollar you pay actually goes towards what. Some company?s claim to use an attorney model but what is actually gained from this model with the exception of higher fees? Compare the models of various companies to see which has the most service for the most reasonable fee. See if the fees are negotiable.

Consumer credit counseling is often no more ideal than debt settlement. Settlement programs are notorious for a industry average of around 70% success rate, that is only about 70% of those who sign up successfully get through the program. However, consumer credit counseling success rates are around 30%! Consumer Credit Programs are made by the creditors themselves and its terms are obviously favoring them. Do Comparisons between consumer credit counseling and debt settlement by asking for a quote from both of them.

Lastly, be sure to know what debt settlement is and what it isn't. It isn't an ideal cure-all, nothing is. It has its downsides. Consumer should go ahead and try to gather whatever information they require about the Company and from the Company. Look at other options as well, and compare the pros and cons of each before making your decision. An ounce of prevention is worth a pound of cure.

Individuals who are financially struggling and need an assistance should find out about the various programs before getting into the right program so as to ensure that they don't make their financial position worse.