Being in extreme debt may tempt you to look toward quick debt relief solutions instead of discussing your problem with a lawyer. A company offering an easy way out of debt is often a red flag. Even a legitimate business is there to make money, which means you may just be trading one type of debt for another. If you’re considering working with a debt settlement company, here’s what you need to know. 

How Does Debt Settlement Work?

When you work with a debt settlement company instead of a lawyer, you go through a process that could end up costing you more. This is partly because the company will charge you a fee for negotiating on your behalf, and there’s no guarantee that your creditors will accept the offer.

Additionally, the company will ask you to stop making payments to your creditors and deposit that money into a special savings account. Once an agreement has been made, that money will be used to settle your debts. The problem is that your creditors will still be charging late fees and penalties on the money you owe. They may also ask a judge to authorize wage garnishment to recover the amount owed while negotiations are proceeding.

Even though the debt settlement company has done what they promised, the additional money you spent may have been enough to settle your debt without help. 

What Are Some Ways to Avoid Debt Settlement Scams? 

Research Your Options

As soon as you realize you need help to resolve your debt problems, start by researching every option. Contact your creditors to negotiate a payment plan, research debt consolidation companies, and talk to a lawyer about other options. 

Seek Opinions From Trusted Friends

Discuss your options with someone you trust. Debt problems may seem embarrassing, but many people go through them. By discussing your situation with a friend or family member, you may get advice from someone who has had practical experience.

Check Online Reviews & Ratings

Even when a company seems legitimate, you should still try to find out about the experiences of other consumers. By doing a Google® search of the business name, you’ll be able to find out what others have said about their experiences. In particular, look for reviews of the debt settlement company on the Better Business Bureau® website and Yelp®.

If you’ve been burned by a debt settlement scam, contact Padgett & Robertson, Attorneys at Law in Mobile, AL. They offer a detailed financial evaluation to each client. To learn more about the debt relief services they offer, you can visit the firm’s website. To discuss your situation, schedule a free initial consultation by calling (251) 342-0264.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.