Ever heard of Debt Reduction Services?

Hi

Welcome to the forums.

Lots are scams are heard around regarding these types of companies. Before you select any company, always do a research on that company in the major search engines as well in the FTC, BBB and the consumer protection office. You need to make sure that the company does not have any written complaints against them.

Always examine the rates of interest and any other types of promotional offers made to you. The companies will make promises of your debt getting reduced instantly. I suggest you to use the following tips while you negotiate with any debt reduction company.

• Ensure that the company has a good track record. Check them in the FTC, BBB and the state attorney general office.
  
  
• Check the company's prospectus and talk to other customers who have used their services.
  
  
• These companies should be registered with the attorney general and should have a bond with the Secretary of the state.
  
  
• A legitimate company offers true budgeting and counseling programs. You will learn various tricks and methods on how to save and invest your money.
  
  
• Always choose a lost cost or no cost program. Do not opt for the programs that charge high fees, upfront money before the services are even offered.
  
  
• All the employees in the company should be certified and bonded. This way, your money sent to the company for paying your creditors should not get lost.
  
  
• It is the responsibility of the consultant to pay your creditors at least once in a month. You should get monthly statements showing the break off of the amount sent.
  
  
• Do not get tempted with the website promotional offers. These types of promos often happen to be a scam.
  
  
• Although a non profit organization is preferable but that will always not guarantee the best results. Your money might sometimes go towards their high salaries.
  
  
• Your money should be put in a trust account so that it actually goes directly to your creditors.
  

Thanks for the great advice Roxette!