Debt Negotiation: It Isn't Always What You Expect

It is easy to get caught up in the hype over different debt relief services when you are drowning and debt and  being hassled by creditors. Debt negotiation companies are on the rise, promising to resolve debts and handle creditors. While this may seem like a great option for resolving debts, there are some things that should be carefully considered.

Company Legitimacy

The most concerning aspect of new wave debt relief companies is that they all offer a different range of services, which makes them harder to regulate and police. Because these companies are largely unregulated, it makes it easy for what seem like legitimate services to easily morph into scams.  Many of these companies offer to negotiate with creditors on behalf of the debtor, arrange debt settlement agreements or make debt management plan payments through direct access to debtor accounts.  All of these actions are warning signs and debtor’s should proceed with caution.

The Right Choice?

While there are plenty of legitimate debt negotiation companies available debtors should consider whether their services are truly needed. For instance, debtors maintain the right to negotiate with creditors, make payments and arrange settlements directly, without the help of a third party company. Most people can be successful in negotiating with creditors on their own. However, those who do feel they need assistance should consult with a bankruptcy attorney or credit lawyer before choosing a third part company.