| Piles of debt mount up as we watch the New York | | | | with the Better Business Bureau. |
| stock exchange strip billions from our economies. This | | | | Be careful of repayment companies that make false |
| situation has seen debt repayment companies rise | | | | promises. These repayment promises can include |
| from the ashes as many of us seek ways for debt | | | | reducing your debt balance by 50%. Reputable |
| repayment. | | | | companies negotiate a reasonable repayment balance |
| Adding further stress to the global financial problems is | | | | with your creditors. |
| the personal financial burden it adds to us individually. | | | | Be careful of the scams that some debt repayment |
| Prices go up, loans get harder to pay and there is fear | | | | companies are selling to consumers. Here are a couple |
| everywhere – fear of losing your home, fear of | | | | to watch out for: |
| losing your job. Then there is the fear to answer the | | | | • The no hassle repayment enrolment plan. This is |
| phone or check your mail as there are always | | | | where you may get a phone call and the company |
| demands for repayment of your debts. | | | | tries to sign you up over the phone without qualifying |
| It has got to the point where all you think about is debt | | | | your actual debt. They charge a membership fee and |
| repayment. Maybe a debt repayment company can | | | | often an additional monthly fee while they take a look |
| help you. While debt repayment is a growing business | | | | at your financial situation. Once you get the result and |
| in these times of a recession, there are reputable firms | | | | you don’t take their advice, don’t expect a |
| out there you can trust. A debt repayment company | | | | refund. |
| reviews your debt, income and assets, and work out a | | | | • Then there is the scam where the company tells |
| realistic payment plan. The company then contacts | | | | you they have contacted your creditors to work out a |
| your creditors to work out a repayment that they | | | | repayment plan and they have not. Or they tell you |
| agree to. (It is not a repayment plan we try to get as | | | | they sent letters to your creditors informing them the |
| they will not save any money with this. What we try to | | | | money is held in trust and will be sent when it reaches |
| work out with creditors it is a repayment offer) | | | | a certain balance. Then the consumer pays a monthly |
| Once you have repaid the debt you are debt-free | | | | amount of say $300 a month, and at least $50 a |
| again. But, don’t forget to factor in the fees – | | | | month goes to the debt repayment company for their |
| account opening and closing fees, monthly payment | | | | services. And while the debt repayment company |
| fees – and these depend on a percentage of your | | | | may pay the creditors, the creditors can still take the |
| overall debt. | | | | consumer to court to recover the rest of the debt as |
| Do be careful about which debt repayment company | | | | they have not agreed to the repayment plan. |
| you choose. There are repayment companies out to | | | | Before you get involved in any debt repayment plan |
| take advantage of these tough financial times. | | | | make sure you check out all your options. Always ask |
| Beware! These repayment companies have no | | | | questions and insist on transparency. Find a debt |
| intention of working with you to help settle your debts. | | | | repayment company that will work for you, not against |
| They trick consumers, desperately trying to get out of | | | | you, in your fight against debt. |
| debt, out of their money. If you have doubts, check | | | | |