Debt negotiators
These days, you can barely turn on the TV without hearing some company blaring on about how they can help you eliminate your debt in as little as 24 months. They promise to slash your debts down the bare minimum, just charging you 35 cents on the dollar for everything you owe. They show you smiling happy people who are sipping champagne and showing off how wonderful their new lives are now that they are debt free. And of course, all this can be yours if you just call their toll free number right now. In some cases, you will be connected with a genuine debt negotiator who can help you with your problems and will get you the relief you need.
However, in other cases, especially in the phony commercial described above, these guys are the lowest of low: crooks who prey on the vulnerable. They will take money from you for a “consulting fee” and leave you holding your bills. How can you tell the difference between real debt negotiators and those who wouldn’t know a debt negotiation from a happy meal? Just follow these simple rules:
- Ask questions. I say this to everyone I meet who asks me about this. Ask lots and lots of questions. Make sure you nail them down on details. Don’t accept vague promises that it will all be okay. How many people have they helped? Do they have real live human beings you can talk to who they helped? What are some of the banks they’ve negotiated debts with? Are there banks that they know debt negotiation will be a waste of time with (Hint: there are some. Some banks will not deal with these guys and they will only deal with you directly. If they claim there’s no such thing as a bank they can’t talk to, hang up and look elsewhere.).
- Talk to people. Ask your friends what they did. These days, there’s no shame in admitting you’re having debt problems and need to find a debt negotiator. The Great Recession has hit everyone hard and your friends will understand. Find out who they used and if they were happy.
- Google is your friend. Check the company out on Google. Do they have reviews? Are there scam reports about them? The world is a different place now since everyone can look up this information. Use it and you will find answers to your questions.
- Don’t be afraid to walk away. There are thousands of companies out there that do this kind of thing today. If you don’t feel comfortable with one debt negotiator, just find another one.