If all your efforts to reduce your debts has gone futile, hiring a debt settlement company must have crossed your mind. With the right choice of company, you will be able to reduce debt to manageable levels. But when choosing among the many companies out there, you should always practice extra precaution. Others who have been there before you have only seen their debts grow because of the inefficiency of a debt relief company. On the other hand, some has been sued to court because of non-payment of their debts.
To avoid a worse scenario than what you are in right now, you should be wary of the following red flags when dealing with a debt relief company. Instead of making a deal, set forth and look for another.
It may be ironic that you will be asked some fees in advance. You are there to be helped because you do not have funds to pay your debts and here comes a debt relief company asking you some money? That is unbelievably absurd! When dealing with a company like this, all you have to do is stand up and leave. There are many other companies out there that charges their clients only when they won their case.
Guarantee of Complete Debt Relief
When you are being promised that all your debts will go away like the snow on mountain tops that are caught by summertime, you should wonder if all creditors will allow that to happen. Interest and penalties may be forfeited but not all your debts. Come to think of it. Everyone will surely be so glad to incur debts and hire a debt relief company if that is the case.
Advice to Stop Any Communication With Creditors
This is a red flag that you should be wary of. It may lead you to some more trouble if you follow an advice like this. On the part of the creditor, it may seem like you are running away from your debts. There are some who were sued because of this. Of course, you do not want it to happen to you.
Promise of Your Invincibility to Lawsuits
You must have always known that no one is above the law. If you are told that you will be spared of debt collections and lawsuits, that is impossible. You can immediately end your contract there and then. You are in front of someone who is on the loose to dupe money from other people.…