Today the recession has hit many individuals around the globe financially causing extreme hardship. While many individuals are doing their best to manage to keep their head above water with more jobs being cut, taxes being raised, and the price of everyday living being increased many are being forced into foreclosure or bankruptcy. There are several companies out there who promise free debt advice but ask for credit card information to use for a background check but in reality they are charging you outrageous fees which will only cause you to go further in debt.

Normally the two options that you have once you are in debt is bankruptcy or to use a debt settlement organization who can negotiate with creditors to get a lower pay off rate. While bankruptcy may seem like a good option at the time it actually can hurt you worse in the long run. While bankruptcy erases your debt it will impact you for years to come including being denied for personal loans, home loans, car loans and even student financing issues. Debt settlement is the best option because it allows you to actually pay off your debt at a lower rate and helps to rebuild your credit history.

When you are seeking free debt advice you may find many individuals or companies who are jumping at the chance to offer it to you but you want to make sure that they are qualified to do what they are claiming they can do. Normally how the process works is the debt settlement company gets a full history of your current credit history and then contacts the creditors in order to lower all of your bills. Once they get a final amount they will then negotiate with you on a fee that you will pay for them working on your behalf. Normally the fee that you pay them will be a percentage of the final total that you will pay towards your debt. Debt settlement is the best option because it allows you to actually pay off your debt at a lower rate and helps to rebuild your credit history. If you are new to using a debt settlement company this is why they can afford to offer you free debt advice because they earn money off of you once you they are ready to settle your debt problems.

While debt settlement companies can offer you a way to solve your financial crisis you want to make sure you choose a reputable company to represent you. If at any time a company tries to get you to pay for negotiating with creditors before they have even contacted the companies then you want to avoid them at all costs. Debt settlement is the best option because it allows you to actually pay off your debt at a lower rate and helps to rebuild your credit history. You should never be asked to for free debt advice and should only be given a fee once they have given you the total that you will have to pay the creditors.