Is Debt Settlement a Scam-

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Is Debt Settlement a Scam- Powered By Docstoc
					There are swirling rumors in the United States that debt settlement is some kind of
scam. Many believe that the service itself is illegal. Others believe that all companies
out there are thieves. Many contrast ethical consumer credit counseling vs. unethical
debt settlement programs. As usual when dealing with extremes and rumors, the truth
lies somewhere in between.

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.

Research the company before signing up. What is their track record online? What is
their BBB record? Do they answer your questions completely as possible? 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. Look at the fee structure and where
each dollar goes. 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%! It could be that this fact
gets little press as consumer credit counseling was created by and the terms arranged
by the creditors themselves who profit greatly from these programs. Get a quote for
consumer credit counseling and compare it to a quote for debt settlement.

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. Get every single piece of information you
can from the service provider. 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.

With a little research a financially struggling person can get into the right program for
them and avoid being taken and their situation made worse.