Debt consolidating agencies
When you sign up for this type of loan, you may never actually receive any money because the company will tell you the loan amount will cover its services or programs.
Instead, you make regular payments to the company to repay the loan.
Before you sign, make sure the debt settlement company agrees to inform you of payments they will be making to your creditors when they have power of attorney.
This ensures you can confirm that your payments are being received.
This amount of money is often lower than your total debt.
If your creditors agree to the offer, you must provide the lump sum to your debt settlement company.
In 1993, the Financial Counseling Association of America (FCAA) was founded as an alternative to the NFCC.
The company may claim that making timely payments on this loan will repair your credit.Be aware that some debt settlement companies may engage in the following practices.Some debt settlement companies offer their services through aggressive telemarketing calls.Take Charge America, an NFCC member, was interested in ME! A debt settlement company negotiates with your creditors and will offer them a lump sum of money to eliminate your debt.
Debt settlement companies don't always provide credit counselling and money management advice.