Deconstructing Risk

The new FTC regulations were a boon for the industry. They did the unthinkable: Forced companies to only charge if they DO THEIR JOB. Wow…what a concept. It has turned the industry upside down. At least the 95 percent of it that needed to be turned upside down. Even though the law was almost a hundred percent positive, it yielded one unfortunate side effect:

The myth of “risk free.”

Some companies saw the regulations as a government risk blanket, an open endorsement to tell customers they have nothing to worry about. NEWS FLASH; There is no such thing as risk free!

Risk is a vital part of financial life. All things have risk and have reward. To tell someone to sign up and float away in a pink cloud of financial safety is just disenguine.

Simply speaking, the law fragmented the industry and created several types of people.

1) The ones that just shut their doors because they didn’t want to get caught.
2) The ones that decided to hide under a lawyers office, and pretend like they’re not doing debt settlement, when in fact they are.
3) The ones that just ignore the law and get caught.
4) And the ones that really weren’t effected by the law because they were doing things right in the first place.

Obviously you would not be reading this post if the world was full of people in the last category. So let me tip you off about some things you might hear from categories 1-3. The most common myth is this idea that you don’t need to research the company. Often, sales people will just throw some quick jargon your way and assure you that their word is final. Truly, you must research what the company is about, it’s history, and its BBB rating before you ever go into business with them.

Also, make sure they have a solid advisor who can help you decide if the program is even right for you. Not everyone needs to be in a program. If you can make your payments, you probably should NOT be in this program. Also, if you are near bankruptcy, it should also be avoided.

Good advice is out there. You just have to look hard for it and be critical at every step.

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