Many consumers who struggle with unpaid bills have come across an offer that seems too good to be true. The offer comes in the form of Debt Management Plans (“DMP”) from a debt settlement company and it may go something like this:
“For a fee, a professional debt management company will help you get rid of your debt for as little as half the amount of debt you owe.”
Most people will admit that offer of debt management plans to settle all your debt for half of what is owed is a tempting offer to consider. This is especially true when facing financial distress.
Sound Like a scam? The answer is that DMPs are legal solutions for consumers. However, hiring a debt settlement company is fraught with risk and there are things that consumers should know before entering into an agreement with a debt settlement company.