How to Choose a Debt Settlement Company
You don’t have to hire a company to settle your debts – that’s something you can do on your own. But, if you don’t feel comfortable negotiating with your creditors or you don’t feel you could do justice to the process, you can hire a debt settlement company. When you go on the hunt for a company to help settle your debts, it’s important that you look out for companies who are running scams.
What Type of Fee is Collected Upfront?
People who complain about debt settlement companies say they paid hundreds of dollars into the settlement program and that money didn’t go toward a settlement. Instead, it was applied to a hefty debt settlement fee. The upfront fee structure is not in your best interest because that means it takes longer for you to finally settle a debt. A trustworthy settlement company will instead charge you the fee when a debt is settled and only for that debt. These are the rules that for many for-profit debt settlement companies have to follow. Even without the rule, that’s fairest for the customer.
Does the Settlement Firm Discuss Your Options?
Before a debt settlement firm agrees to take on your case, they need to discuss your finances with you. The company needs to have an understanding of what you owe, how much you owe, and the monthly payment you’ll be able to make. Believe it or not, if you put aside enough money each month to make a settlement, you may not be a good candidate for debt settlement. A reputable company will take time to understand this.
Is the Company Clear About How it Operates?
Though you may be eager to get started on a debt settlement program, you should take time to ask questions before you decide on a company. Make sure you understand how much you have to pay each month, where your payments accrue, and whether you’ll have access to your dedicated account. Ask how much success the company has had with settlements sooner than yours and the approximate amount of time it will take to settle your accounts. Find out how long the company has been operating – the longer the better because they’ve had more experience settling accounts.
What Do Other Customers Say?
Find out what other people say about the settlement company by visiting the Better Business Bureau website at BBB.org. You can also check with your state Attorney general to see if there have been any complaints about a particular debt settlement company you’re considering. An internet search might also show you whether previous customers have had good or bad experiences with a specific company.
Related posts:
- Starting a DIY Debt Settlement Program
- Learn How Debt Settlement Works
- Debt Settlement DIY vs. Debt Settlement Services
- Benefits of Debt Settlement
- Comparing Debt Settlement to Other Debt Solutions
- The Downside to Debt Settlement
- Debt Settlement Fact and Fiction
- Debt Settlement Negotiations and Offers
- How To Settle Your Debt
- Warning: How to Spot a Debt Consolidation Scam
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If you want to get out of debt, but aren't sure what your plan should be, then click here and read the debt consolidation plan.
If you're serious about getting debt free, sign up for the free debt course that will help you lower your minimum payments, lower your interest rates, and get out of debt faster.
Get the course here:
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