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Perhaps, in considering your financial situation you have made the decision to use a debt counseling service. A lot of people assume that going with a christian service is the way to go because it means they will be fair, legitimate, and perhaps even free or low cost.

Unfortunately, this is not true. There are several not so great people that would abuse the trust of others for a buck. This case is no different. Many people have seen that by putting “Christian” next to their name an automatic trust is given. Bad people will take advantage of others’ faith and difficult financial situation

Some of these companies will promise to get creditors to waive fees and reduce interest rates after you pay them a substantial fee upfront. Then, many will fail to even contact your creditors, and instead will set up a phony debt management plan, taking the money you deposit each month for themselves, rather than paying your creditors with it. This practice has the devastating effect of increasing your debt and damaging your credit score.

Be careful in choosing a debt relief company. First, you need to understand that they can’t do anything for you that you can’t do yourself (like negotiating down your rates or payoff amount). Second, even though they promise to stop hassling phone calls, you are the one ultimately responsible for the debt and therefor the creditors are still going to call you (you can then refer your creditors to the company you have given power to act in your behalf to). Third, anybody can promise anything. Several debt settlement companies promise no hassle, no more heartache, and that you will be out of debt in a few years. These things are entirely within your control and nobody can change these things but you. They also promise things like, negotiating your debt down with your creditors and getting your rates down. These things are up to your creditor, not them. When you go to choose a debt settlement company, go with someone who is rated well by the Better Business Bureau, or get a referral from someone you know. Do not sign any contracts that hold you to a long term agreement, and DO NOT give them electronic access to your bank account so you can stop at anytime if they don’t fulfill their end of the bargain. And definitely don’t give them large sums of money up front. It doesn’t take $1000 to set up any account.

In the end, just protect yourself. Be aware, and put the things in place so that you don’t end up a victim, but can choose a great debt settlement company and become debt free in a few years.

C. Arnold is an professional in budgeting and debt management. To learn more about Christian Credit Debt Counsoling.