Rise Above Debt Relief Evaluation - The Bills.com Blog

this was on Rise Above Debt RElief's BBB site, so you're right... they look tiny. DEBT SETTLEMENT For those living under constant financial pressure, a debt settlement agency can be an alternative to filing bankruptcy. However, before trusting your financial future to any one company, be sure your are dealing with a reputable company; an incompetent or fraudulent agency can cause financial disaster. The Better Business Bureau suggests that before entering into any debt settlement agreements, consumers should exercise caution in order to carefully consider their options and make sure that they are dealing with an agency that can actually help them at a price that they can afford. Debt settlement agencies attempt to settle overdue debts with creditors by offering a one-time lump payment in lieu of the entire debt. While such payments are always less than the value of the debt, creditors often accept such offers because they believe that they will be unable to recoup all that they are owed, so they opt for a portion. Although such a process may benefit those with severe financial problems, consumers should consider several facts before signing any contracts: Debt settlement may lead to charge-offs or other actions that can reflect on your credit report BBB Definition: report - A summary of activity reflected in a company's BBB file. Includes basic business background, BBB Accreditation information, and BBB complaint activity over the previous three years. Also reports may include any known government actions, advertising issues or other information that results from activity conducted by the BBB. . Such information can remain for many years, impacting your ability to get loans and credit cards, and it can play a role in employment decisions. Become familiar with how this type of service will affect your credit. Most forgiven, or settled debt is taxable as personal income. Thus, debt that is written off in a completed settlement may need to be a factor when calculating your end of year taxes. Before signing a contract, it is important to know how the agency expects to be compensated. Some debt negotiators are known to charge upfront fees while others charge a percentage of the forgiven debt's value. Make sure you get this type of information in writing. It is also important to check that the company does not have a history of unsatisfactory behavior. Contact the Better Business Bureau and the Attorney General's office (www.attorney_general.state.az.us) to ascertain if there are recorded complaints.

Thanks Bill. I appreciate the info.