I have read a lot about the federal debt reduction initiative and I must admit none of it has been good. Their main objective seems to be to take your money from you. This tends to be more of a problem when people are looking for help. A scammer will take your money and run after telling you what you want to hear.

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. But if you are going to seek help, make sure you know who you are doing business with. Find out what the BBB has to say and also see what the forums are saying. Just because someone has a complaint against them does not mean that they are dishonest. These companies are in a business that is not pleasant and not everyone likes what they have to say. This may be reason for some 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. Keep in mind that just because they are nonprofit, that does not necessarily mean they are free. They do have expenses and need to make money 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 want to hold back your first payment, look for another service organization. If you offer the federal debt reduction initiative, check it out carefully.

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