The Federal Trade Commission operates to educate and protect consumers. Their job is to field consumer complaints and investigate fraudulent operations in the financial, mortgage and credit industries. Over the years the FTC has developed a list of recommendations for consumers seeking help in any one of these areas.
Debt Reduction Ideas
The FTC has worked diligently to help consumers learn about all of their debt relief options. Consumers should know that they have the right to resolve their debts on their own. By developing a budget and contacting creditors to inform them of a debt management plan, many people have been able to successfully resolve their own debt problems.
For those who need a more structured plan, the FTC recommends using a debt relief agency. However, not all debt relief companies are the same and many are operating under false pretenses. Consumers should seek help through a qualified credit counseling agency or company that employs licensed financial professionals. Companies that are selling services or charging upfront fees should be avoided.
Bankruptcy is an option endorsed by the FTC for anyone who has not be able to resolve their debts in other methods or might have greater consequences at stake. Consumers considering bankruptcy should seek counsel from a qualified bankruptcy lawyer, who can review their case and best advise them of how to proceed.
More FTC tips for consumers: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm