Getting Out of Debt – Who to Trust, Who to Avoid

America’s economy is in the stinker for a reason—people made purchases they couldn’t afford. And, you’d think that we’d have learned our lesson. All the debts we’ve racked up over the years have come back to bite us in the a$$ and it’s time to pay up, right?

Well, only some of us understand this concept: that we are each responsible for our own mess. We are each accountable for our own financial stability and security. There’s no quick-fix solution.

In light of all this panic, financial services companies are having a field day. Some entice customers with easy bailouts that seem (and are) too good to be true. Others are legitimate services that might be worth considering. Today, we shed some light on the good guys and the bad.

Avoid Debt Elimination Scams
If you’re one of the remaining few who is still looking for a rescue squad to bail you out of debt, this one’s for you.There’s a new breed of “debt scam” in town these days that claims to erase your debt and even clear your mortgage because your bank’s credit line is illegal. These scams claim that if you sign up with them (for usually around $2,500 up front), they’ll take the bank to court and get your debt erased and you won’t have to worry about it. Don’t fall for this—it’s simply not true and you’ll not only be out thousands of dollars, but you’ll also be on the FBI’s blacklist, and your original debt will still be there. Below are a few links which will bring you up to speed on scams that are going around that you should watch out for.

http://debtscams.com/

http://www.consumerfraudreporting.org/debtcollectionscams_what_to_do.php

Debt Consolidation Companies
A debt consolidation company combines all of your bills into one loan amount, and pays your bills on your behalf. Now you owe the consolidation company just one bill, which you can pay off monthly at usually a lower cost then if you had continued on paying your credit card companies. These guys are good, as long as you go to a legitimate company. Here are a few very well-known organizations to help you consolidate your debt:

Consumer Credit Counseling Service: http://www.cccsatl.org

www.debtadvice.org

Just remember, you’re not alone in this process of reclaiming your financial security. The road to financial health may be a long and a bit challenging, but it will also be a rewarding and empowering experience that will allow you to take charge of your life and your future.