Phony Debt Consolidation Schemes To Be On The Lookout For Part Two
In part one in these series of articles I wrote about potentially shady debt consolidation schemes that you should be on the lookout for. Read on to find out more:….
In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.
Finally, and most importantly, DON’T invest your trust in the debt consolidation counselor who tells you that “We will handle everything. You should cease all communication with your creditors.” Even though the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.
It is crucial to keep in mind that the creditor is the one with whom you signed your contractual agreement. When you allow all of your statements to be sent to the debt settlement company, you give up that control. You don’t have any idea how much in interest and late fees are being tacked on. You also won’t know if your debt has been moved into collection.
A few final words of wisdom. If you believe that you need debt settlement, try debt management first. Call up your creditors and request suspended payment, reduced interest or any other payment terms that may suit your financial situation in a more favorable light. Even though it might seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.
Rapid Recovery Solution is a commercial debt collection agency.
Article source:First home buyer