The Top 3 Debt Settlement Traps To Avoid

The Top 5 Debt Settlement Traps To Avoid

Are you thinking about Settling your debt for yourself? You can settle your debt and your Credit Accounts (for yourself). But first below are three debt settlement traps that every American Debtor should beware of.

1. The "Do it For You" Trap

What To Watch Out For: any company who fails to inform you, that you (as a Debtor) have the right to negotiate and settle your own accounts for yourself, and save a bundle of money.

There are many debt settlement companies who are great at making bold claims in their advertising. For example, "we can reduce your credit card debt for you, saving you thousands of dollars." Beware because many of these companies are not so quick at telling Debtors that they can settle their accounts for themselves - saving those Debtors thousands of dollars.

How To Avoid This Trap: Be critical of any company that doesn't teach Debtors how to negotiate and settle their Debt for themselves.

2. The "Send Us Your Payments (Escrow Account)" Trap

What to Watch out for: There are many companies who advise you to hand control over your money to them. Hundreds of thousands of Debtors have actually fallen into the trap of sending money to a company, with the hopes of that company actually keeping their end of the agreement (paying of their debt).

How To Avoid This Trap: Don't do business with any company that charges administrative fee's for something that you, the Debtor, can do for yourself with the right knowledge and and software.

3. "Unsolicited Debt Settlement" Trap


What to Watch Out For: Many Debt Collection Terrorist (3rd Party Debt Collectors) may contact you offering a Debt Settlement ranging from 75% to 85% of the past due balance. These Unsolicited (unrequested) offers are, in a majority of times, usually to get the Debtor to admitting to the debt which is usually inflated.


How To Avoid This Trap: Validate any Debt Settlement offer that you never asked for. It's possible that the debt in question is a "Junk Debt" - meaning, that the Debt Collection Terrorist brought an old account, which the 1st party creditor gave up all hope of collecting.

Why Avoid All of The Above Traps?

Because you can budget, negotiate, settle and eliminate your debt and repair your own credit for yourself.

In fact, Credit and Debt "Self-Help" is what the Federal Trade Commission recommends.
--------------------------------------------------------
DEBT WARRIORS™ are not Attorneys. WE ARE experienced Credit Repair and Debt Management Coaches. The information on this blog, should not be considered legal advice, but helpful information.

Don't let debt defeat you! Win Your War ON DEBT!
------------------------------------------------------