Tips on how to deal with your debt

(Consumer Alert) – Digging yourself out of debt can be daunting, so when help comes along, you may be tempted to take it. However, experts warn you should do your research first to avoid getting scammed.

Companies promising to help consumers avoid bankruptcy by consolidating debt may look tempting but U.S. Postal Inspectors warn, many websites and companies are not only expensive, but may be trying to rip you off.

Things like added service fees, lack of accountability and high monthly payments are some of the pitfalls of these debt resolution companies. Consumers trying to do the right thing could find themselves in even more financial trouble if they don’t do their research.

“They find out that they have spent thousands of dollars and this money hasn’t gone towards negotiating anything with the companies and often times even the operators have walked away with their money,” said Leslie McClain, a Postal Inspector with the United States Postal Service.

The USPS advises before signing up with any debt consolidation company, you first meet with a certified credit counselor. Many of them are non-profits and don’t charge a fee. They can help you decide on the best action plan.

For more information on the debt industry, head to the Federal Trade Commission’s website by clicking here.