Don't Get Scammed - Choose Your Credit Agency Wisely

Scams are everywhere and a fast growing problem in the current recession is a con scheme involving the impersonation of debt consolidation, negotiation, and elimination agency. Such plans represent a last hope for many people to get out of debt; they are effective and time proven to help you get out of debt. And thanks to the rising levels of unemployment (over 10% in some states) more people are using them than ever before, and some of them have fallen victim to the scammers.

If you are in a situation where you are looking at these debt plans in order to free yourself from debt, here are a few tips/methods for spotting which are legitimate agencies and which ones are scams.

Talk To A Credit Counseling Agency:

Credit Counseling Agency's exist to help people in debt figure out the financial options that are best for them. Agencies base it on peoples specific problems and resources. They are often non-profit agencies, and their services are either free or provided when you pay a small fee ($75 is average). Different agencies can offer different services (such as reverse mortgages, debt consolidation plans, and more) which means that it is important to figure out which agency will be able to help you the most.

If you are in a situation where you are looking at debt plans and credit agencies in order to free yourself from debt, here are a few general tips/methods for figuring which are legitimate and which ones are scams.

• If you are working with a lawyer or a paralegal concerning your debt, ask if they can refer a debt help agency. Most will either have lists containing reliable and certified credit agencies on hand or they will be able to find one for you fairly quickly.
• States usually require credit agencies to be accredited and to have certified counselors in order to operate within specific states. Always ask an agency if this is true for them - while not all agencies have certified counselors the best ones usually do. Agencies with counselors who are certified by an outside group (one that you can research for yourself) often have websites and phone lines that you can research and call.
• Understand what you are getting yourself into. If you feel confused at any point during your conversation with the agency, always ask them to go over the information again. Most agencies will be happy to do so and will give you as much time as you need to figure out the options being offered to you. However, agencies that offer their counselors a commission for each customer gained are less likely to do this than companies who offer their counselors a flat rate.
• Make sure that you have been walked through the agencies entire privacy agreement. If an agency refuses to do so, or you do not feel that their privacy agreement is tough enough, then don't use that agency! Your financial information has to be protected, and if one agency can't do it then another one can.
• Get things down in writing. Most legitimate credit agencies will offer written contracts, certificates, or other legally binding agreements. These written promises are in place to protect you; they often contain the name of the counselor who helped you and the entire agreement in physical writing. Make sure that you read through the agreement and that the writing is straightforward and simple. If it isn't or you find yourself confused by something on it, call the agency back and ask them to go over it with you. You can often get written agreements emailed to you by the agency in question.
• Check for them with your states Better Business Bureau (BBB). If they are legitimate, then the BBB will be able to tell you how helpful they are and whether or not the BBB has received complaints about the agency.

Related Links:

New York Times Scam Article: Is a brief expose on scams targeting people who have been hit hard by the recession.
BBB1: Tips from the better business bureau on how to find a good credit counseling agency.
BBB2: An article detailing the difference between debt consolidation, debt negotiation and debt elimination plans.

Debt Relief Grants To Clear Credit Card Debts

By: Walter Sigmore  
Debts are dreaded by almost everyone. No matter how confidently one promises to himself about using the credit card only when the need arises, all the users end up being guilty for having made purchases that are well beyond their budget. This in turn directs them to huge debts, which necessarily means headache. Debt relief grants can come to your rescue now. With these grants, it is easier to get rid of your debts and lead a peaceful life.


These debt grants can be utilized for your educational purposes, health care, to clear your household or store debts, etc. The good thing about such grants is that the rate of interest is relatively low and repayable by any person with not so good financial status. These financial grants are issued by debt consolidation companies and also nonprofit organizations. The nonprofit companies provide relief to people who are in critical financial crisis and can hardly find any means to get out of the same.

Credit counseling should be the first step that any person who is fully submerged in debts should look forward to. This will help him analyze the various options left and which one suits him the best so that he can comfortably get out of the debts. Normally, a person who has huge debts to clear will be in a confused state. Hence, it is necessary to submit to a credit counselor.

Before you can attend these sessions, you are required to collect all your credit bills and other debt bills. When you carry these to the credit counselor, he will analyze your financial status and with his experience, will provide you with all the possible scenarios. A good counselor will strive hard to lead you towards personal freedom and helps in stabilizing your future.

There are umpteen credit consolidators in the market today. While most of them genuinely struggle to help you out, there are scams too. You should conduct a brief research on which company has been successful in helping the debtors to restore their life like before.

You can compare the success rates of the various companies and zero-in on the best company that can help you out. You can try looking for nonprofit companies that offer debt relief grants for people who are in terrible crisis. If your condition is really poor, then you can benefit from such grants. Start today with ending your bad debt.

Source: Article Snatch