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Hi Taylor
- Debt relief isn't real, right? There's a catch or something? I have
a few grand in credit card debt that I'd like gone, and I get all
sorts of calls and mailings about debt relief that I assume are all
scams. Am I wrong about that? - Destiny
Hi Destiny - You are, in fact, a tiny bit wrong - but only
a tiny bit, so there's no need to beat yourself up. In many cases,
your name is on a giant mailing list and the services won't actually
help. Whether or not a debt reliever can improve your situation depends
on what that situation is. And, of course, some of those calls are
bogus, so you have to be careful.
Because debt is a massive issue here in the US, it has naturally become
a lucrative industry. Lenders have made tons of money awarding people
debt, and now other companies are managing to make some revenue helping
people settle outstanding balances. If debt relief was nothing more
than a scam, it would have fizzled out long ago. As you can see from
the continued mailings, the trend isn't going away.
Relief companies offer a few different types of services, so this
is one of the things you have to research if you plan to take someone
up on a debt elimination offer. In addition to debt resettlement,
you may have access to debt management, consolidation and repayment
planning. These services should come with different fees and timetables;
you'll want to be clear about your needs before reaching out to a
service provider.
When searching for a legitimate debt reliever, the biggest red flag
is a company that charges up front. You shouldn't pay a dime for debt
relief until you've seen some of the benefits. You will sign contracts
and there will be mechanisms in place to ensure you pay later, but
paying up front is a big no-no. There's a lot of uncertainty when
it comes to debt resettlement, and you shouldn't pay until you know
what you can get.
Fortunately, lots of these debt relief companies have been around
for a long time, and the good ones are generally scored by the BBB.
If you get a phone call or an offer in the mail that seems too good
to be true, look the company up. If there's a BBB rating and a fair
number of positive reviews, the company is probably trustworthy and
worth looking into.
Debt relief isn't for everyone, but getting out of debt should always
be your objective. If you do some research and it looks like one of
these companies can help you and the money saved will offset the fees,
it seems like that's a good option. Hope this helps, Destiny! |
© Taylor
Kovar September 14, 2018
More "Go Far With Kovar"
Disclosure: Information presented is for educational
purposes only and is not an offer or solicitation for the sale or
purchase of any specific securities, investments, or investment strategies.
Investments involve risk and, unless otherwise stated, are not guaranteed.
Be sure to first consult with a qualified financial adviser and/or
tax professional before implementing any strategy discussed herein.
Past performance is not indicative of future performance. To submit
a question to be answered in this column, please send it via email
to Question@TaylorKovar.com,
or via regular mail to Lessons on Wealth, 106 E Lufkin Ave., Lufkin,
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