Get Out Of Debt

Consumers struggling with a high debt burden are reminded that research is required before enrolling in any debt relief program. While there are hundreds of legitimate companies that can help individuals eliminate their debt, there are also plenty of scams circulating within the industry which should be avoided. Before enrolling in any program it is important to investigate the company and the process they claim to use to eliminate debt. Here we are going to take a closer look at a potential scam that has cost some consumers hundreds or even thousands of dollars.

What is the National Debt Relief Program Scam?

It appears many consumers have received a letter in the mail claiming to be from the National Debt Relief Program. Victims of this scam have stated the letter at first glance appears to be from a government agency. Upon closer inspection it becomes clear the letter is not from a government agency but rather GHS Solutions, a debt settlement company. Jennifer Wallis is a Consumer Credit Counseling Service employee in central Oklahoma. She has clients who have received this letter which states the National Debt Relief Program can “reduce monthly payments by up to 50 percent”. Why is this letter considered a scam? Since the letter is designed to look like correspondence from a government agency, many consumers fail to realize it is actually from a debt settlement company. The information is misleading and many consumers who are desperate for a solution to their debt problem may enroll in a program that can have serious negative consequences.

GHS Solutions is a debt settlement company based in Delray Beach, Florida. The Better Business Bureau has given the company a F rating and reports 102 consumer complaints in the past three years. Of the 102 total complaints against the company, 88 are about the company agreeing to perform according to their contract.

GHS Solutions is not the only debt settlement company linked to the National Debt Relief Program scam. It appears consumers have also complained about a company named National Debt Relief and the program they offer to consumers. In this instance consumers have actually enrolled in the program and claim the company did not perform as promised. Clients claim National Debt Relief failed to stop collection calls and did not begin negotiating debt immediately. Other complaints claim the company misrepresents itself to appear like a government agency which leads consumers to believe they are working with a government program designed to assist individuals facing financial hardships.

It is important for all consumers to understand what type of debt relief program they are committing to before moving forward. Debt settlement is a legal process where individuals or companies hired on their behalf, negotiate with creditors to reduce delinquent balances in order to eliminate debt. Anyone considering this process must thoroughly research both the method and any company they consider hiring. There are several risks involved in the process however it can be the best option for people facing a serious financial hardship who would otherwise have to look toward bankruptcy to address their debt situation. It is unfortunate that some debt settlement companies continue to mislead or misrepresent themselves in order to enroll clients in their programs. Consumers are urged to carefully read any correspondence as well as contracts prior to enrolling in a debt settlement program to avoid confusion and disappointment down the road.

With so many government programs being passed in recent months, it’s quite likely that you’ve started to hear about credit card debt help from the government. However, you may be wondering if it is real. People who are in significant debt have probably received solicitations encouraging them to use a particular debt relief program. What exactly is being offered and can it help your situation?

The Scoop on Government Programs

There are definitely government sponsored programs that are being put into place to help Americans get out of debt. While you can probably feel confident that these systems will do what they claim for the average user, they really don’t offer a lot more than what you can do for yourself. By calling your credit card companies yourself, you can usually receive an offer to settle credit card debt for about 40% of what you owe. Because there is no middle man, you will not have to pay any fees or accompanying costs. With government options, they will take their cut like any other company would.

Is It Any Different Than Other Settlement Programs?

Using a government sponsored program doesn’t really offer you any advantages over standard debt settlement companies. The creditors are being encouraged to balance books in any way that they can and they will talk with the settlement company of your choice just as readily as a government agency. Also, most consumers are well aware that the government isn’t known for efficiency. A dedicated business, on the other hand, can not function unless it does things right.

What Other Help is There?

Besides using a credit card debt help that is directly sponsored by the government, there are several hidden advantages to the central involvement in financial affairs. First, because of bail out plans, every creditor has a distinct incentive to cut you a deal by the government’s encouragement. There also may be grants that are available that can be used to pay off consumer debt. However, they aren’t listed as such and you’ll need to search deep to find those opportunities. Finally, the government is attempting to invest in the economy and create jobs and that may lead to less consumer debt overall, if the plan is effective.

What Can I Do On My Own?

The good news is that you aren’t at all limited to the options that are being put forth by the federal government. You can still create and implement your own plan. This may include using your own middle man to negotiate payments and settlements. With enough persistence, you can also deal directly with the credit card companies and get good results from those efforts.

There are definitely real options that the government is offering for credit card debt help. However, they aren’t necessarily better or more lucrative than other readily available methods that you can take advantage of.