How to Avoid Unscrupulous Debt Settlement Companies

Not all debt settlement companies are created equal. Because of unscrupulous business practices of some companies within our industry, we strongly recommend our clients do their homework carefully before signing up for any debt settlement plan. After all, your finances are on the line, and you need to be confident that your money isn’t going to be taken for a ride as you travel down the road towards financial stability. The following are four red flags we consider deal breakers when assessing a debt settlement company.

credit card The Company is Not Professionally Accredited. Any company can register with the BBB, but not every company can register with the BSI Group, the United States Organization for Bankruptcy Alternatives, and the IAPDA. These organizations set rigorous standards for our industry that members must adhere to. These standards not only ensure high quality service, they also guarantee that the highest level of integrity and ethics will be delivered.

There are Risks Involved. Many debt settlement companies require participants to deposit money into a special savings account every month. At the end of the specified term, these funds are turned over to the creditor and the debt is officially settled. Many times, people drop out of these programs, and in the process, they lose the money they’ve deposited. .

Scams are Plentiful. If it sounds too good to be true, it is. Any company that says they have a “new” program, will settle for pennies on the dollar, or can make your debts simply vanish, is full of hogwash. These are red flags that should make you get up and walk away from the table.

There are Costs. Debt settlement is a business, not a charity. The company gets paid with fees earned from helping you manage your debts. These fees can add up, and you’ll want to make sure you understand them so there won’t be any hidden surprises.

Debt settlement is something that doesn’t happen overnight. However, the IAPDA certified team at Superior Debt Relief Services is ready to help you with proper debt management. We invite you to contact us by calling 866-896-7616 to learn more about the counseling services we have available.

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