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How Do I Know if a Debt Consolidation Company is Legitimate?

Question:

Dear Steve,

Based on your knowledge and experience in debt settlement, what are the top 5 companies you’d recommend? I continue to get offers from companies. They tell me my current one isn’t good. They are a 3rd party and say you should be with a law firm, etc.

Tracey

Answer:

Dear Tracey,

First, you need to evaluate all of those messages based on what they are, trying to sell you on their service. It’s a sales gimmick.

When one debt settlement company tries to use why they are better than another one, I’m not convinced any are telling you the whole truth.

Think about it like this. You assumed you needed a hole dug. You hired a company to come to dig you a hole. They told you they did a great job.

Along come some other companies with commissioned salespeople trying to get you as a customer. They try to convince you the first company doesn’t know how to dig holes and they can do a better job. One company even tells you they have attorneys who will dig your hole. But will they? And who are the top five hole-digging companies?

Soon you realize you never needed a hole to solve your problem. You needed a ladder, a small hole, and a bike for the job.

In a recent podcast, Damon Day and I talk about this issue and mistakes nearly everyone makes when facing their debt situation.

I think you will get a lot out of the podcast below.

Typically the “you need a law firm” argument is really so they can collect advance fees from you before your debt is settled. The City of Chicago recently sued a “law group” and Strategic Financial Solutions over misrepresentations and poor service.

You should read the City of Chicago Goes After Strategic Financial Solutions and Monarch Legal Group.

Ultimately, you need the right solution to solve the present and future situations. Thinking you can get out of debt by fixing the past is a mistake.

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When you talk to a professional debt coach like Damon Day, you get a discussion about what your goals are, a unique custom plan of action, and a friend to guide you along the way.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

The secret to getting out of debt is not the tool you use but the selection of tools and steps to accomplish the ultimate goal of a better financial future.

Regarding checking out if a company is “legitimate,” see my links below.

  1. The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
  2. 10 Must Do Steps to Find the Best Counseling or Settlement Company for You
  3. How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off

The word legitimate is a tough one to rate on. A company might have all the right registrations and deliver the wrong solution and bad advice. So a “legitimate” company can be wrong.

I think what you are really asking me for is what company will put your needs first, treat you as an individual with a unique situation, and deliver a comprehensive plan using a little of this and a little of that to set you off toward success.

The answer to that is almost none since they are each trying to sell you their widget, not the right solution.

Talk to Damon Day and he can help you come up with a plan.


Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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