There Are New FTC Regulations Covering Debt Consolidation Plans

The FTC passed new rules on September 27 that is part of the new Federal financial regulations that will offer consumers more protection when seeking debt consolidation plans. This is particularly applicable to those who are working with companies they don’t know and need some protection. There are some important points to remember that will help protect you when dealing with debt consolidation service companies. One of the most important is that they disclose the new regulations.

Here are several things to know about how to go about to get out of debts that will offer you some guidance.

1. A great place to start is with non profit credit counseling. These folks are on the side of the page as you. There are for profit companies and many of these are good as well but you need to interview a few and find one that you feel you can work with.

2. Remember what you want to do is to consolidate debt loans NOT get a loan to pay off your debt! These loans are often a scam!

3. When you see the term low interest debt consolidation its important to be sure this means the service is negotiating a low interest rate with your existing lenders. Don’t be tricked into a "new" loan. Again these are often a scam.

4. Not all debt consolidation plans are the same. Talk with several companies before you decide. Compare one plan against another. There are differences and you should get the plan that works best for you.

Under the new rules those offering debt consolidation plans have to disclose a long list of what they are doing. Be sure when you talk with them they go over the Federal requirements and that they are taking them seriously. Anyone who says the rules don’t apply to them is someone you should probably stay away from. Only work with those who are willing and eager to fully disclose everything they are doing to you.