My Debt Relief Plan

Signs of a Good Debt Settlement Company

When choosing a debt settlement company, it is important to remember that this is an important decision that will affect your life for a good 2-3 years. In addition, no matter what a company may say, the results of their negotiations will not necessarily vary greatly(assuming that you are choosing between reputable companies). Thus, in my opinion, the deciding factors for your decision should be based more on customer service than any other aspect. Here are a few points to focus on to help you make your decision a little more easily.

1. They pay attention to your needs:

Each individuals financial situation is unique and should be treated accordingly. They company should take the time to understand your specific case and not just ignore the details. This means that they should take the time to understand your situation and not just try to sell you product.

2. They are honest and upfront from the beginning:

Any debt settlement company that makes you promises or makes things sound too good to be true, should not be trusted. For example, a good debt negotiation company can negotiate your debts to 35-40% of the outstanding balance, but not always. Some deals may be for 50, 55, or 60% of the debt depending on the situation. Make sure that the company gives you realistic expectations.

3. Their fees are reasonable:

Any company that charges you expensive set-up or administration fees or excessive amounts of commission should not trusted. Additionally, I wouldnt recommend choosing any company that asks for large sums of money upfront. There are obviously expenses involved to begin negotiating an account, but charging large upfront fees doesnt guaranteed that the company will follow through on what they promise. I recommend hiring a company that charges a commission, this way you are only charged based on the results the company produces. Additionally, when a company is paid on commission, there is less risk that they are a scam, because the only way that they make any money is if they actually do the work.

4. Gut feeling:

Ask yourself if you feel comfortable with the individuals you have spoken to. Do you feel comfortable in general with the information and other explanations. Remember, you are paying for the service, so make sure it is what you want, not what they want to give.

One final issue that I didnt mention was certifications. Memberships to debt settlement organizations and negotiation certifications are a bonus, but in my opinion are rather easy to obtain by merely paying membership fees. The BBB is also a bonus, but should not be a determining factor as many complaints come from disgruntled clients who expected the company to work a miracle. Finally, a number of BBB organizations are currently denying debt settlement companies membership solely due to the industry which means that many, even if they wanted to, could not be members of the BBB.

In general, I feel that if you take in to consideration these few extra points I have mentioned, you might find yourself choosing a debt settlement company that fits your needs a little more precisely.

Add comment August 10th, 2007

Debt Settlement Offers The Best Method to Control Your Debts

Credit solutions and debt settlement allow you to save money and pay off debts in a short time. You can easily enroll in a debt settlement program and avoid a credit check and expensive startup fees.

Debt settlement offers you three distinct advantages:

• Settle debt at 40 percent to 60 percent of the original amount

• Fast debt relief in only a few months
• Simple enrollment without a credit check

Debt settlement companies work on your behalf to solve debt problems by entering into negotiations with your creditors. You pay off the settled debt at only a portion of the outstanding debt and interest. For example, you can reduce a $4,000 debt to only $1,600 with debt settlement.

Settling debt at a fraction of the owed amount enables you to payoff creditors in months rather than years. Instead of obtaining a 15-year debt consolidation loan to handle your financial problems, you can quickly improve your money situation with debt settlement.

The simple enrollment process saves you from excessive fees and lengthy approval periods. You do not need to wait several weeks or months to begin your debt settlement program. You can enroll today.

Comparing Debt Settlement with other Debt-Relief Methods

The benefits of debt settlement far exceed those of debt consolidation, credit counseling and bankruptcy. You pay less money toward eliminating each settled debt and you avoid paying interest on a consolidation loan. Converting unsecured credit card debt into a secured debt consolidation loan often leads to more uncontrolled debt.

Debt settlement provides a middle ground where you and your creditors can settle debts and agree on a repayment amount. Following the debt negotiation process, the creditor agrees to waive part of the settlers debt and accepts the remaining sum as full repayment.

Bankruptcy gives you bad credit for 10 years and destroys your ability to pursue other financial options. With bankruptcy on your credit record, youll find difficulties in obtaining a loan, renting an apartment and getting a new job. Credit counseling does not offer any reduction in the principal amount of debt, but only a reduction in interest and late fees.

Add comment August 10th, 2007