Perhaps, in considering your financial situation you have made the decision to use a debt counseling service. A lot of people assume that going with a christian service is the way to go because it means they will be fair, legitimate, and perhaps even free or low cost.
Unfortunately, this is not true. There are several not so great people that would abuse the trust of others for a buck. This case is no different. Many people have seen that by putting “Christian” next to their name an automatic trust is given. Bad people will take advantage of others’ faith and difficult financial situation
There are a range of bad companies. Some of them are just that, bad companies who charge you a fee each month, but don’t really do anything for you. Others charge you upfront and don’t do anything for you and you leave them in the same position or worse off. But there are some companies that really prey on people in a bad financial spot. Being deep in debt is also every emotionally challenging and often we throw caution to the wind hoping that someone or anything will get us out of this mess. But be wary because there are companies out there that are down right illegal and will scam you right out of thousands of dollars doing absolutely nothing for you.
Be careful in choosing a debt relief company. First, you need to understand that they can’t do anything for you that you can’t do yourself (like negotiating down your rates or payoff amount). Second, even though they promise to stop hassling phone calls, you are the one ultimately responsible for the debt and therefor the creditors are still going to call you (you can then refer your creditors to the company you have given power to act in your behalf to). Third, anybody can promise anything. Several debt settlement companies promise no hassle, no more heartache, and that you will be out of debt in a few years. These things are entirely within your control and nobody can change these things but you. They also promise things like, negotiating your debt down with your creditors and getting your rates down. These things are up to your creditor, not them. When you go to choose a debt settlement company, go with someone who is rated well by the Better Business Bureau, or get a referral from someone you know. Do not sign any contracts that hold you to a long term agreement, and DO NOT give them electronic access to your bank account so you can stop at anytime if they don’t fulfill their end of the bargain. And definitely don’t give them large sums of money up front. It doesn’t take $1000 to set up any account.
In the end, just protect yourself. Be aware, and put the things in place so that you don’t end up a victim, but can choose a great debt settlement company and become debt free in a few years.
C. Arnold is an professional in budgeting and debt consolidation. To find out more about Christian Credit Debt Counsoling.
