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Credit Help > Non Profit Credit Help Firms Sell Phony Services
Non Profit Credit Help Firms Sell Phony Services |
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Non-profit credit help firms have made a
booming business of helping consumers with bad credit. Helping people out of debt can make plenty of money. Profits mean con artists are inevitably tapping into the all the cash between consumers and companies. Credit help
companies can both be good and bad. "Bad" refers to companies whose business focus is taking your money instead of negotiating with your clients. Credit help companies may offer poor service but at a premium fee. It is predatory credit help as money is taken from those who can least afford it with false promises of eliminating debt. To truly get out of debt, you firstly have to control your spending. Only then can you have credit help companies restructure your debt payments to creditors. Research to find the genuine firms. For a good start try www.aiccca.org. But be wary and avoid simply handing over your money only on the basis of a firm claiming to restructure your debt. In reality your creditors may not be willing to negotiate with that particular credit help firm. Some exceptional credit help firms are available and the entire industry does not have crooks alone. The industry as a whole caters to a great need for American consumers struggling under massive credit card debt. But the fact remains that until your spending is brought under control, credit help is merely a temporary respite for a deep-rooted problem. According to money experts, debt management firms or consumer credit help agencies can be of great help for those experiencing temporary financial difficulties. But choosing a company requires caution. Find those with reasonable fees, ability to negotiate for low interest rates in the long run and without promises of painlessly eliminating debt. It also helps to check out another article, some credit help non profits are just looking to make a buck. Credit help firms can claim to be non profit and have the ability to arrange for your unsecured debt, credit card debt being a typical example to be paid off at 10-50% of the balance owed. Therefore for a $10,000 debt on a credit card, a credit help firm can claim to arrange paying it off at a lower amount like $4,000. Often credit help firms offer services as an alternative to bankruptcy. The claim could be that using the service will have virtually no negative impact on your chances of credit in the future or the removal of negative entries from your credit report on completion of the credit help program. The usual advice by credit help firms is to cease payments to your creditors, diverting them instead to the credit help company. Credit help firms are capable of promising to hold your funds in a special account and pay creditors on your behalf. The reputed credit help companies offer advice on managing money and debts, develop a budget and mostly offer free educational tools and workshops. Their counselors are certified and trained in consumer credit, money and debt management and budgeting. Your entire financial situation is discussed for help in devising a personalized plan to solve money problems. The initial counseling session is typically an hour-long with follow-up sessions being offered. Reputed credit help agencies send free information about themselves and their services without making you furnish any details about your situation. Any firm failing to do so should be taken as a warning to try elsewhere. On developing a list of potential credit help agencies, check with the state Attorney General, local consumer protection agency and Better Business Bureau. They can inform you of any complaints filed against them in the past. But merely lacking complaints is no guarantee of legitimacy. You can then move on to interviews with final candidates. The FTC strives to protect consumers from fraudulent, deceptive and unfair business practices in the marketplace and inform consumers on identifying and avoiding them. Complaints can be filed or free information on consumer issues obtained with a visit to www.ftc.gov or a toll-free call to1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. |
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