Personal Finance
May 23, 2019

How To Find A Legitimate Debt Relief Company

Written By Mary Beth Eastman
Last updated December 28, 2019

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Most people have been exposed to plenty of advertising promising to help people get out of debt from things like credit cards or loans while making vague and absurd promises. There are no shortcuts to make debt simply disappear as some of these companies claim. However, debt is a very real problem for most people and there are legitimate businesses that provide help to those who need assistance with their finances.

Here are some warnings signs that tell you a company may not have your best interests in mind.

In these situations, there is no guarantee that the company will actually provide any kind of legitimate service for the initial amount that is being paid. Also, common sense would tell you that most people who are in financial trouble are not going to be helped by spending more money right away. The Federal Trade Commission has stated that a large up front fee for re-negotiating debt is the main sign of a scam.

Legitimately increasing a credit score is a process that takes time through proper payments on all open accounts. Negative information can also only be removed if it is false, disputed, or the relevant time frame (seven years for most things on a report) has passed. Offers of a quick fix for these problems should be viewed with suspicion, as should any claims about fictional new laws or government programs that allow debt to be removed easily.

If a debt relief service is making automated phone calls or placing ads on the internet and television that sound like sales tactics, they are trying to profit off of distressed consumers rather than help them. When the people you contact through these ads want to know account numbers or other sensitive information right away, that is a huge red flag.

A legitimate debt relief service will help people with things like budgeting, basic financial management, saving for payments, and talking to creditors to see if they offer an legitimate options to help reduce or better manage your debt. A good option like Freedom Debt Relief is more like a planning a budgeting service than one that claims to take all of your debt away through tricks and shortcuts. Accredited Debt Relief is good for those who don’t have huge sums of debt. You can usually check a company’s reputation online through some simple searching.

By following these basic guidelines you can avoid losing money through debt relief scams.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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