Mission Credit Debt Relief Options and Alternatives

Debt settlement can be a viable option for those struggling with credit card debt, as it can reduce the amount owed to creditors by negotiating a lump sum payment.

This approach often results in a lower overall payment amount, but it can also have negative effects on credit scores.

Credit counseling agencies can also provide valuable assistance, offering financial education and negotiating with creditors on behalf of clients.

These agencies often charge fees, but they can be a more affordable alternative to debt settlement companies.

Non-profit credit counseling agencies, such as the National Foundation for Credit Counseling, offer free or low-cost services to those in need.

Bogus debt relief services target consumers with significant credit card debt, promising to negotiate with creditors but often charging high up-front fees without delivering results.

Some debt relief scams use automated "robocalls" to consumers on the Do-Not-Call List, and even tout their services as legitimate debt settlement or credit counseling.

The FTC has brought scores of law enforcement actions against these scams, and has also amended its Telemarketing Sales Rule to protect consumers seeking debt relief services.

Be wary of companies that charge high up-front and/or monthly fees for enrolling in credit counseling or a debt management or settlement plan, as these can be a sign of a scam.

Some credit counseling services are nonprofits, while others are for profit, so take time to know what your total costs are and who is receiving your money.

Beware of companies that tell you they'll lower your interest rates on your credit cards and that you can pay for their supposed "services" out of the savings.

Debt relief service scams target consumers with significant credit card debt by falsely promising to negotiate with their creditors to settle or otherwise reduce consumers' repayment obligations.

These operations often charge cash-strapped consumers a large up-front fee, but then fail to help them settle or lower their debts – if they provide any service at all.

Some debt relief scams even tout their services using automated "robocalls" to consumers on the Do-Not-Call List.

The FTC has brought scores of law enforcement actions against these bogus credit-related services.

The FTC amended its Telemarketing Sales Rule in 2010 to protect consumers seeking debt relief services, like debt settlement or credit counseling.

The Rule prohibits for-profit companies that sell these services over the telephone from charging a fee before they actually settle or reduce a consumer's debt.

Debt relief providers are also required to disclose key information that consumers need in evaluating these services.

Auto loan modification scams falsely promise that they can reduce consumers' monthly car loan or lease payments to help them avoid repossession.

Credit repair scams also frequently target financially distressed consumers who are having credit problems.

These operations lure consumers to purchase their services by falsely claiming that they will remove negative information from consumers' credit reports even if that information is accurate.

Debt settlement companies promise quick results to get out of debt, but they often charge high fees and can have a long-term negative impact on your credit.

Debt settlement companies may tell you to stop paying your bills altogether and save the monthly payments in a savings account, but this can lead to late fees, interest-upon-interest, and falling further into debt.

In Minnesota, debt settlement companies must register with the Department of Commerce, but this doesn't guarantee they're trustworthy.

Under Minnesota law, debt settlement companies are prohibited from charging up-front fees, telling consumers to stop paying their creditors, and making false promises about improving credit scores or shielding consumers from interest, fees, and collection activity.

Most debt settlement companies charge high fees, taking a significant percentage of your monthly payments. Some companies even charge high up-front and/or monthly fees for enrolling in a debt management or settlement plan.

Here are some red flags to watch out for:

Some organizations, like the Consumer Federation of America, warn consumers not to use debt settlement companies.

Debt relief options can be overwhelming, but it's essential to understand the pros and cons of each. Be extremely cautious about using debt settlement/negotiation companies, as they often charge high fees and can have a long-term negative impact on your credit.

In Minnesota, debt settlement/negotiation companies must register with the Department of Commerce and follow specific regulations. However, most debt settlement/negotiation companies are not trustworthy, and consumers have reported serious misrepresentations that left them worse off.

If you're struggling with debt, consider a debt management program like the one offered by the Consumer Credit Counseling Service (CCCS). Their program allows you to make one monthly payment to CCCS, which is then disbursed to all of your creditors.

Reputable credit counseling organizations can also help you develop a monthly budget and provide advice on managing your money and paying your debts. Many are nonprofits that do not charge you a fee for their services, and their counselors have training in finance and consumer credit.

To find a reputable credit counseling organization, you can contact the National Foundation for Credit Counseling at (800) 388-2227 or the LSS Financial Counseling Service at (888) 577-2227.

Here are some things to watch out for when considering a debt relief option:

To get started with credit debt relief, you need to find a reputable credit counseling organization. You can contact LSS Financial Counseling Service at (888) 577-2227 or visit their website at www.lssmn.org.

Before using any credit counseling organization, check with the Better Business Bureau to see if they have any complaints filed against them. The Better Business Bureau of Minnesota and North Dakota is located at 220 South River Ridge Circle, Burnsville, MN 55337, and you can reach them at (651) 699-1111 or (800) 646-6222.

Many credit counseling organizations are nonprofits that offer their services for free as part of their mission. This means you won't have to pay any fees to get help.

Reputable credit counseling organizations will have counselors who are trained in finance and consumer credit. They will review your financial situation and help you develop a plan tailored to your needs.

You should also make sure that any credit counseling organization you consider does not charge hidden fees, even if they claim to be a nonprofit.

Debt relief is a serious business, and it's essential to understand your options. Our Debt Management Program (DMP) can help you reduce your monthly payments and stop collection activity.

We work with your creditors to create a plan that works for you. One monthly payment to us is all you need to make. We'll take care of disbursing it to all your creditors.

A thorough review of your monthly living expenses and outstanding debts is a crucial step in our process. Our counselors will work with you to develop a detailed action plan.

Our DMP is not a debt settlement program, so you can trust that you're getting a legitimate service. We're licensed in Iowa and Minnesota, and we provide debt management programs in South Dakota.

CCC provides confidential and thorough counseling to help you achieve your financial goals. We're here to help you take control of your debt and start building a better financial future.

Be cautious of debt relief companies that charge upfront fees, as they can drain your bank account before providing any actual assistance.

Some debt relief companies may claim to have a proven track record, but a lack of transparency about their methods and results can be a red flag.

If a company promises to eliminate all your debt in a short period, it's likely a scam.

Make sure to research the company's reputation and read reviews from multiple sources before committing to their services.

Be wary of companies that use high-pressure sales tactics or try to rush you into signing a contract.

Don't be fooled by companies that claim to have a "special relationship" with creditors, as this is often just a marketing ploy.

A reputable debt relief company should be transparent about their fees, methods, and results, and should never promise more than they can deliver.