Much of the following is based on the FTC’s publication, Choosing a Credit Counselor . It is a compilation of questions and information to consider when determining the legitimacy of a credit counseling organizations. Many credit counseling agencies are non-profit entities, but that does not necessarily mean they are credible and it definitely doesn’t mean they are government sanctioned (other than for their own tax purposes).

Christian Credit Consolidation - Is Debt Settlement A Moral Solution?

Many Christians who are seeking consumer debt management online will encounter a new and innovative approach to debt consolidation known as debt settlement. Debt settlement, also known as debt negotiation or debt reduction, involves negotiating with credit card companies to lower the amount that a consumer owes. In exchange for a lump sum payment of between 40 and 60 percent of the debt, a creditor will oftentimes agree to "charge off" the rest of the balance.

A major reason why consumers in the red continue to be duped by debt collectors, consolidation firms, and credit repair companies is that far too few people know what the actual difference is between these organizations, and government agencies and debt groups make the mistake of bunching them all together in consumer publications and alerts.

Want to eliminate 100% of your credit card debt without paying a dollar bill to your creditors? As your mother always told you, if it sounds too good to be true, it probably is. With many Americans falling further into unsecured debt with personal loans, credit cards, repossessions, and credit collection accounts, a new type of debt management company has sprung up the so called debt elimination agency.

Unsecured debts are any debts that do not pledge any collateral or property to guarantee payment. With unsecured debt, a creditors only recourse for getting payment in the event a consumer defaults on the terms is to pursue legal action, obtain a judgment, and then execute the judgment by garnishing wages, levying a bank account, or putting a lien on your property.

Like most things, circumstances vary widely for each individual situation. This being the case, you should seek the debt relief company or service that is most experienced in dealing with clients with your background. Do they have established relationships with your creditors? What do they know about your particular state laws (this is particularly important for debt settlement)?

There are several types of debt lawyers out there. Some are there to help you get out of debt, while others are there to pursue legal action against you to collect what you owe. The three types are debt collection attorneys, debt consolidation attorneys, and bankruptcy attorneys.

As more and more consumers seek debt solutions like credit counseling and debt settlement, also known as debt negotiation or debt reduction, the importance of legitimate and useful services has become increasingly urgent. In light of this, unfortunately, as the need for debt help has increased, so too has the number of quality services available to the public.