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5 Tips To Help You Avoid Shady Debt Settlement Companies

By Debt.ca on April 12, 2012 No Comments

You can avoid shady debt settlement companies by looking for the right signs. The level of debt in Canada is a concern to most borrowers. When you face a debt challenge, the last thing you want to do is deal with a debt settlement or debt negotiation company that will not help get you out of debt. There are many shady debt settlement companies out there that you must make every effort to avoid.

If you need help negotiating settlements, you may want to sign with the first person who offers settlement services. Before you give in to the temptation, contact your provincial or territorial consumer affairs office. These offices regulate settlement companies and their operations.

The following 5 tips will help you avoid debt settlement scams.

Understand The Writing

Make sure you understand the fees that the debt settlement company is proposing to charge you. It is very important to read over the fine print even if it’s font size 2! Most of the tricks are always hidden in the fine print which unfortunately is often ignored by most debt settlement seekers.

Don’t Succumb to Pressure

Never let the debt settlement company make you feel like you must use their services. They should only go as far as explaining their services to you and give you ample time to make a decision. Shady companies are known to use pressurized sales pitches because they want to get your business as soon as today. Always trust your instinct.

Counter-check the Company’s Credibility

Any genuine debt settlement company should be a member of the BBB or any relevant professional association that identifies the company as credible. Read reviews and see if other customers encourage you to settle your debt with this particular company.  Look into complaints against the company as well as their reputation rating. Choose only the most reputable company.

Don’t Be Carried Away by Big Names

We are not suggesting that you should cut all your intentions of letting the big companies handle your debt settlement. All we are suggesting is that you should never be so carried away by big names at the expense of highly reputable and credible small debt settlement companies in Canada. In most cases, smaller businesses will work twice as hard to earn your business and get you the results you are looking for.

Is The Company Truly Canadian?

Find out if the debt settlement company is indeed Canadian. Verify that their telephone number is Canadian and call to make sure it is not just a fake number. In your call, seek to find out where the company is located or at least where exactly they operate from.

We hope that the above tips will prevent you from choosing a shady debt settlement company.

Debt settlement continues to be a preferred option among Canadians who are keen on getting out of debt. While it will do some harm to your credit, it’s not nearly as severe as bankruptcy. The priority is to fix your present financial situation, get out of debt and get on with your life.

If you want to avoid shady debt settlement companies while seeking the best way to get out of debt, call us today.

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