If you are saddled with burdensome debt, the promises of a debt negotiation program may sound all too appealing. Don't be fooled, though: Debt negotiation programs are usually risky ventures that can significantly harm your credit. In some cases, they can even increase your debt.
A debt negotiation program, or a DNP, is an organization that claims to help its clients get rid of debt. They often market themselves as fast, easy ways to completely get rid of your debts. DNPs use this rhetoric to prey on debt-ridden consumers who are vulnerable and desperate for quick solutions. In order to avoid these potentially harmful programs, it is important to recognize their warning signs.
These can be major red flags regarding a debt negotiation program:
- Promising that they can get rid of all debts
- Saying that debts can be paid off for a fraction of what is actually owed
- Claiming that they can save you from bankruptcy
- Charging high fees
- Charging a proportion of your supposed debt savings
- Telling you to stop communicating with and paying your creditors
- Stating that creditors do not sue debtors over lack of payment
- Claiming that your credit score will not be hurt
- Saying that they can remove negative information from your credit report
Remember, debt negotiation programs are not the same thing as credit counseling or a debt management plan. If you are dealing with the negative consequences of a DNP or you struggle with debt of your own, you can contact an attorney who specializes in debt relief.