Debt Relief Law Center
Debt Relief Options – 10 Reasons Why You Should Use A Debt Settlement Company
This is for the people that think they can negotiate their debt without the help of a debt settlement company. I hear this all the time and the fact is you’re going to save more money, time and effort if you use the services of a good debt settlement company. Some people get all worked up about this and I don’t get it at all. Never assume you know something…get the facts. Trust me on this one…you’ll thank me later.
- Debt settlement companies have proven strategies and tactics that enable them to negotiate to lower amounts than you would be able to on your own.
- Your creditors are not going to settle with you until you have a nice chunk of money to offer them. Debt settlement programs give you a way to save that money by making payments into a trust account. This is great for people that are not good at saving there own money. Not to mention the fact that you’re less likely to spend money you don’t have access to.
- The Attorneys that work for you when in a debt settlement program send your creditors legal notifications requesting that all communications are to now be directed through the law firm. This greatly reduces the harassing creditor phone calls.
- If a creditor takes you to court you will have proof that you are actively working to repay the debt. It looks a lot better to the judge when you show him proof of the program.
- Creditors are less likely to take you to court because they look like bullies when you’re actively working to pay them back.
- A debt settlement company is going to constantly be making offers to your creditor starting very low and slightly increasing the amount as you build funds in your trust account assuring that you get the lowest settlement possible.
- You will save yourself countless hours of work.
- You have a legal paper trail if things are inaccurately reporting on your credit report after you settle. Good luck getting it changed without it.
- Good debt settlement companies have established relationship with the banks and can get to the decision makers that have the ability to actually do something. They don’t just call the customer service number on the back of the card (probably a call center in India).
- You will save more money!
How to choose the right debt settlement company
I suggest a settlement company that uses a law firm and not an arbitrator when dealing with your creditors. They typically have a higher success and satisfaction rating. A good question to ask is who does the actual negotiating? Try to find a company that does not outsource the negotiation process to some 3rd party company. When shopping for the best company you want to look at the total benefit to you. Don’t just look at what they charge you but also consider their ability to negotiate your debt to a lower amount because it does you no good to use the cheapest company (fee wise) if they stink at the negotiation process or if they outsource it (losing all quality control). For instance, if a particular company is able to save you let’s say an additional 7% due to good negotiating but there fees are higher than the competition by say 3%. It would still be in your best interest to use them due to the total savings realized once the program is done. Around 15% of your total debt is what you should expect to pay for a good debt settlement company. This should be included in your monthly payment and there should be NO upfront fees. Also, don’t pay much attention to what these companies estimate your total savings to be because it’s just that, an estimate and no one knows what your creditors are going to settle for until they actually settle! Always watch out for the slick talking sales associates that don’t have your best interests at heart. Make sure that the company you work with is a member of either T.A.S.C. or the U.S.O.B.A. which are both groups that help make sure that state and federal guidelines are being followed. And forget the BBB (better business bureau) because just about every company in the debt relief industry has an F rating because of the nature of the business. However, I would use the BBB to check the complaint history of a debt settlement company and the law firm they use. Personally I think the number one thing to look for is a quality sales representative that knows what they’re talking about and one that you feel you have built a solid relationship with. A bad Representative can make any company seem bad and vice versa. I like to see a company that has a sharp website which shows me that they are investing in their future and are not just a fly by night company. I would suggest going with a company that has more than just a settlement program as an option. This tells me that they’re less likely to be biased towards any one particular program.
About the Author
www.creditcardsettlementadvice.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.
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