If you’re in debt and considering turning to a debt settlement agency for help, be sure to conduct a little background research on the agency.

Not all debt settlers are created equal. Unless you know what to look out for, you could end up in more debt than when you started.

You Should Find Another Debt Relief Agency if:

• They’re Forcing the Contract: If a representative discourages you from reading the entire contract or if he tries to “explain what it says” to “save you time,” watch out. NEVER sign a contract without reading it, especially if your finances are on the line.
• They’re Promoting Default: If a debt settlement representative suggests allowing one or more of your accounts to go into default, DON’T work with the agency. Some companies insist they can’t negotiate with creditors until an account is in default, but this is untrue. Defaulting on payments can cause serious damage to your credit score, wage garnishment, foreclosure and more.
• They’re Discouraging Direct Creditor Contact: Direct contact with creditors is an effective way to address your debt issues. Suggesting you refrain from contacting them can indicate questionable methods.
• They’re Demanding Unreasonable Upfront Fees: This company is supposed to be helping you get out of debt. If you’re asked to pay enormous fees or if you’re asked to pay fees before the company helps you, walk away. Consult with a trusted resource before making a final decision.
• They’re Pressuring You to Sign Up: Ask yourself why a company would do this – because it loves helping people in distress? Probably not. Any company that pressures you to sign up right away is likely arranged so that it will make a large profit off you and maybe not offer you much in return.
• They’re Rushing the Consultation: If a representative is trying to sign you up without really listening to you, don’t bite. Effective debt settlement agencies will help create a program that will work for your specific needs.

Remember… You’re The Boss

In the end, you’re there to help yourself. If the agency is legitimate, it should understand and encourage your desire to do your homework.

If you’re not comfortable with debt settlement, you may want to consider filing bankruptcy.

Bankruptcy was designed to eliminate debt.

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