I have read a lot about the federal debt reduction initiative and I must admit none of it has been good. There is a good inication they are trying to take your money. When individuals are looking for help, this is more likely to be an issue. It seems like there is a scammer ready to tell you what you want to hear and take your money and run.

There is no such thing as a federal debt reduction initiative. You can use a nonprofit credit counseling company or a debt settlement company, but there is no direct government agency that is going to help you get out of debt. But if an organization is trying to appear trust worthy, it always sounds good if they sound like they are affiliated with the federal government.

If you have debt, you are going to have to decide how you want to manage it. Make sure you know who you are doing business with if decide to use a debt settlement agency. See what the forums are saying about them, as well as the BBB. Just because a file was filed against a company does not necessarily mean they are not trust worthy. Not everyone will like what these companies have to say, because this business is not pleasant. This may cause individuals to file a complaint. Any reputable company will do their best to resolve the complaint in a professional manner.

Nonprofit organizations can be a great option, if you need help. Rarely would a scammer go the nonprofit route. Keep in mind that just because they are nonprofit, that does not necessarily mean they are free. They need to make money to cover their expenses. Debt counseling agencies normally charge a setup of fee of about $50 and a monthly fee of $30-$50 per month. If they are trying to hold back your first month’s payments, look elsewhere. If you offer the federal debt reduction initiative, check it out carefully.