Debt relief plans might be the only thing standing between you and bankruptcy. Depending on your situation, it could help you figure out your best course moving forward. Start by knowing your options. Only then can you understand which of those programs—with their pros and cons—work for you.

Debt Relief Options

For instance, debt consolidation involves paying off multiple debts by taking out a loan. That can give you lower interest rates, reduces your stress, and makes it easier for you to manage your debt especially since you won’t have to worry about different payment methods, deadlines, and rates. You could also go with a debt management plan if you need professional guidance on how to control your spending. With a plan you need to stick to, you can look forward to better results. And if that still isn’t a good fit, you can consider a debt settlement plan. It settles your debt for less than the full amount you owe. This comes with other downsides, though, so you’ll need to check thoroughly.

Debt Relief Scams

If you’re ready to try out debt relief programs, your next step is to find a company that offers debt relief services. There are plenty of options in the market, so you won’t need to worry about limited options. However, you do need to keep an eye out for dodgy service providers. While there are reputable companies that can help you get out of debt, there are also companies that are out to scam you. If you want to get out of the red, then you’ll need to look for the right firm to get you through it. Knowing the signs will help you steer clear of trouble.

Signs of Scams

If you encounter any of the following signs during your talks or consult with a debt relief company, that’s a sign that they aren’t trustworthy. Spare yourself the time and energy by moving on to other companies.

• They ask you to pay them before they even do anything for you. A down payment is understandable. But asking for the entire payment means they might try to run.
• They want it in cash. If the firm asks for payment and doesn’t accept anything other than cash, that’s another red flag. Companies know that bank payments are the best. That way, if there are issues, you can ask the bank not to release the funds. That protects you from unscrupulous service providers.
• They promise everything. If the firm promises you results that are too good to be true, then they probably aren’t real. The firm might only be stringing you along with bogus promises.
• They tell you to cut off communication. If the firm tells you never to talk to the creditors again, ask why. If they can’t explain satisfactorily, walk away.
• They won’t tell you anything about their services. They’ll only do so when you provide your financial information. If that’s the case, the debt relief firm isn’t the best possible option for you.