If you’re struggling to pay your bills and are desperately trying to avoid bankruptcy then you may decide debt settlement is for you. With debt settlement you can pay back what you owe, often for pennies on the dollar and consider the debt paid in full. Many debt settlement programs have helped thousands and thousands of consumers and businesses avoid bankruptcy,  however home work by the consumer is still needed.

Recently, a debt settlement firm was ordered to pay damages and restitution in NY for apparently putting consumers in worse financial straights than before they took on their case. The AG for NY ordered that money be paid back for the damage before the company could operate again in that state.

According to the WSJ, 

New York State Attorney General Andrew Cuomo said Thursday that a state judge has ordered a debt-settlement company to pay nearly $200,000 in civil penalties for allegedly fraudulent business practices and false advertising.

In a statement, Cuomo said Nationwide Asset Services Inc. of Phoenix was ordered by New York Supreme Court Justice Patrick H. NeMoyer in Buffalo, N.Y., to pay $198,100 in civil penalties and to post a $500,000 performance bond before it can do business in New York state.

“This company made promises to people who were searching for financial help and trying to turn their lives around,” Cuomo said. “But the promises never came true and, in many cases, New Yorkers were left in worse condition than when they started.”

While the Internet brings us convenience for things like news, shopping, and connecting to people, it brings with it a whole lot of scams and opportunities for  businesses to reach out to the masses very quickly. With that, consumers often feel a net of safety and hire financial experts, who in person, they may have never hired.

Debt settlement programs are very affective and can help thousands of people but the old adage caveat emperor still holds true– buyer beware.

Make sure you check out the debt settlement company before you hire them. Do a quick background check by Googling the company, checking their Better Business Bureau record and be sure to review their terms of service before you sign up for anything.

Related debt settlement links

Watch a free video on how debt settlement works and see if its right for you

Did you know there are DIY debt settlement programs that will teach you what the experts know? You could save thousands by doing your own settlement offers with your creditors.

Is a collection agency hounding you for an old debt? Did you know that legally you may not have to pay it? Check the statute of limitations to see if your debt is legally expired.

Debt counseling may be the answer you are looking for if you do not have funds to settle your debts. Careone is a leading credit counseling source that can help you quickly and with a free consultation.

Debt Settlement Can Hurt More Than Help – The Early Show – CBS News. Early Show financial contributor Vera Gibbons shared some warnings about using those companies on the show Tuesday.

FTC Facts for Consumers: Knee Deep in Debt  (PDF) Help from the Federal Trade Commission on debt problems.