Four Reasons to Avoid 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.

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. Additionally, some debt settlement companies will actually encourage debtors to stop sending payments to the creditor altogether. This can cause late fees, penalties and nasty dings on credit reports.

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.

Save Yourself by Avoiding These Bad Credit Loans

bad credit, to purchase something or draw more credit, it’s wise to be hesitant of that lender. These companies are often searching for people who are in financial trouble because they perceive them to be easy and vulnerable targets.

Credit loans can be tempting for consumers seeking debt assistance, but there are five types of credit loans that are best avoided because of their reputation for exploiting debt issues rather than improving them.

Payday Loans – With proof of income, this type of loan is designed to be repaid upon the arrival of the borrower’s next paycheck. Unfortunately, the cost of repaying the loan does not leave enough income for the borrower to also pay bills, meaning they’ll need more payday loans to make it to their subsequent checks.

Auto Loans for Bad Credit – Vehicle salesmen work on commission, so some of them will push inadvisable loans if it means they can make a sale. Steer clear of any auto loan that’s set at 10% interest or higher or requires more than five years to pay off. The vehicle’s depreciation and bleak refinancing options mean it may become worth less than the amount owed.

Auto Title Loans – Consumers borrow these loans when they’re looking to make quick cash by leveraging their vehicle as collateral. Basically, they will lose their car if they can’t pay back the loan. Not only is this a risky prospect, but the sky-high interest rates are nothing short of a scam.

 

Mobile Home Loans – These loans are designed to prey on low-income borrowers who feel they can’t afford a house but who desire more privacy and ownership than apartment living. Ironically, after considering the fast depreciation of mobile homes and the ridiculous interest rates, consumers may actually fare better paying a mortgage.

Personal Loans for Bad Credit – The business plan for selling personal loans to those with bad credit is simply to charge more interest than the amount originally borrowed in order to turn a profit. Some of these companies even sell life insurance to guarantee you can pay your debt posthumously should anything happen to you!  CreditCards.com

The Benefits of Consumer Credit Counseling

Life is an unpredictable journey. It is often full of twists and turns that can rock your financial foundations and leave you with debts that are difficult to pay. As these accumulate and grow, it can be difficult to find solutions to your mounting debt. When that happens, consulting professional debt counseling services is the best option towards reducing your debt and regaining your financial independence.

Seek an accredited credit counselor to find your way out of debt.

The first step in the right financial direction occurs when you work with a credit counselor who will advise your debt management plan. Often, this is referred to as simply a DMP. This is one of the first steps you will have to take when working with debt counseling services, which is why it’s imperative to form a DMP before meeting them. That is because a DMP is an efficient way to lower your interest rates and get all your bills consolidated into one monthly payment.



Managing a DMP with the assistance of debt counseling services accomplishes several goals. Most importantly, it is often possible to lower your interest rates so that you are paying more towards the debt principal each month. This means you’ll pay off your debts faster and won’t be wasting money on out of control interest charges.

It also makes it easier to avoid late fees, helps you rebuild your credit profile, and it ends those frustrating phone calls from creditors each month. Effectively, it assists in putting you back in control of your finances, and makes it possible for you to focus on your financial future.

Without question, the greatest benefit certified debt counselors have to offer you come from sharing their expertise to help you strategize for your financial future. From start to finish, a debt counselor can help you devise a budget and develop healthy financial habits that will allow you to save money and avoid potential problems down the road. After all, life is a long journey and the sooner you take control of your money and your expenses, the smoother the road ahead will be.

Since 1998, Superior Debt Services has been helping people take control of their debt. Our certified consultants are experts in debt negotiation and would be happy to help you regain your financial freedom. To learn more about our debt counseling services and the many ways we can assist you, contact us by calling