I have read a lot about the federal debt reduction initiative and I must admit none of it has been good. There is a good inication they are trying to take your money. This tends to be more of a problem when people are looking for help. It seems like there is a scammer ready to tell you what you want to hear and take your money and run.
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. Before you give your money to anyone, take the steps to make sure they are reliable. Check out what the forums have to see and also what the BBB is saying. Just because a file was filed against a company does not necessarily mean they are not trust worthy. These orgainzations are in an unpleasent business and not everyone is happy with their advise. This may cause individuals 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. Do not expect a non profit organization to be 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 are trying to hold back your first month’s payments, look elsewhere. If you offer the federal debt reduction initiative, check it out carefully.