Beware of Scams Run By Debt Management Companies Posing As Non Profit Organisations

It has now commonly come to be established that many debt management and debt settlement companies claim to have the status of a non-profit organization. While they may have the status it does not mean that they are not going to charge you for the services they provide. In fact many debt settlement services take the money from your first one to 3 payments that you send to them as their own personal fee.

This could result in a delay of the payments. If you were expecting the debt management company to start sending the payment from the first month, you will stop paying the creditors yourself. When the debt management company keeps the first few payments instead of sending them to the creditors your accounts become late and are reported to the credit bureaus.

If a debt settlement company asks you to pay some money upfront before they have provided you with any services they should seize you think about taking your business elsewhere. A credit counseling services not allowed to charge you any money before the actual realization of the services that they promise you. There are also required to present you with a written contract that mentions all details about what’s the services or that are going to be provided and what charges are going to be levied to provide them.

Even after the contract has been signed you have a period of three days to negate and cancel the contract.