I have read a lot about the federal debt reduction initiative and I must admit none of it has been good. From everything I am seeing, they are trying to separate you from your money. This more likely to be an issue when individuals are looking for help. 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. Check out what the forums have to see and also what the BBB is saying. An issued complainst does not always signify dishonesty. These orgainzations are in an unpleasent business and not everyone is happy with their advise. This sometimes causes people to file a complaint. Any reputable company will do their best to resolve the complaint in a professional manner.
A nonprofit organization is your best bet. Rarely would a scammer go the nonprofit route. Just because an organizations advertises that it is nonprofit, does not mean that is free. These companies have expenses and they have to be able to cover them. 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.
