How to Utilize Debt Relief Agencies

The Federal Trade Commission, or FTC, prohibits debt relief companies from charging customers before their debt has been reduced or settled. Debt relief agencies should not have any direct control over your funds. Consumers should plan on creating strategies to help themselves and using the help of reputable debt relief agencies as a last resort. Create your own budget and strategies for paying down your debt. Call your creditors to create workable plans for paying what you owe them. Constantly evaluate your debt relief agency to determine if they are effective.

• 1

  Evaluate the claims of debt relief firms based on the Federal Trade Commissions guidelines for debt relief agencies. Stay away from debt relief agencies that want to charge you upfront or make unfounded claims about how they can reduce your debt.

• 2

  Create a dedicated bank account at an FDIC-insured institution to put aside funds for paying creditors and debt relief agency fees. Manage the account yourself without any interference from the debt relief agency.

• 3

  File a complaint with the FTC at FTC-HELP (877-382-4357) if you find that a debt relief agency is making fraudulent claims.

• 4

  Contact your bank to stop any payments to the debt relief agency if you find that it is going out of business or making fraudulent claims.