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:....
Meanwhile, your creditors are going without being paid. Unluckily, while you are collecting that payment, you aren't paying your bills and you may be sinking lower and lower into debt.Instead of taking this gamble check out a nonprofit credit counseling firm that may charge you only twenty dollars, if anything. Instead of billing the debtor, these counselors will typically get what is called a fair share percentage payment from your creditors after you have been paid.
Finally, and most important, do NOT put trust in the debt settlement counselor who assures you that "We will handle everything. You should stop communicating with your creditors." Despite 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 company.
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