(Rapid City, SD) - Pioneer Credit Counseling, a nonprofit consumer agency, hopes to help consumers avoid debt settlement scams by educating people about the differences between debt settlement and debt management.
“One of the biggest consumer misconceptions is that debt settlement and debt management are the same service,” said Todd Ossenfort, CEO of Pioneer Credit Counseling. “Knowing the difference and what to look for can save people a lot of financial heartache.”
Debt settlement companies often promise to help settle consumer debts for pennies on the dollar. These claims are usually too good to be true, and the Federal Trade Commission has warned consumers to beware of any debt settlement company that charges high upfront fees, guarantees to settle unsecured debt for less than the amount owed, or advises against communicating with creditors.
Debt management plans are different. Customized plans, like those offered by Pioneer Credit Counseling, allow the client to make one consolidated monthly payment to the agency, which is used to pay creditors.
“Debt management is the safer, more responsible way to pay down debt and gain true financial independence,”
So what should consumers look for in a legitimate debt management company?
• Accreditation:
• Non-profit: Non-profit credit counseling companies are legally obligated to provide consumer education and information.
• History: Beware of fly-by-night companies. Look for an agency with an established history.
• Better Business Bureau: Check with the Better Business Bureau to review any complaints against the company you’re considering.
For more information about debt management plans and the differences between debt management and debt settlement, visit http://www.pioneercredit.com/
