Get Rid of Your Debt

Debt Settlement Programs Are Not All The Same

In 2007, total U.S. consumer debt reached a staggering 2.46 trillion dollars. Increasingly, Americans rely on credit – particularly credit cards – to extend their income; however, for many consumers, this juggling act can be overwhelming, and debt quickly becomes unmanageable. Fortunately, numerous debt relief companies and organizations exist to help consumers whose debt has gotten out of control. Not all debt settlement services are created equal, however. To find the best debt settlement company provider for them, consumers should research carefully and make their decision based on the following factors:

1. The Debt Settlement Company’s Reputation

Unfortunately, there are always credit card debt companies seeking to exploit people desperate for help. To ensure that you don’t fall victim to one of these businesses, do a little research before committing to a debt settlement company.

First, check with the Better Business Bureau. If the company has a history of consumer complaints, or if the company is not registered with the BBB at all, you might want to look elsewhere.

In addition, find out if the company is a member of an accredited Chamber of Commerce; reputable affiliations and strong community ties like this are a good sign that a company has a strong foundation and practices business responsibly.

Finally, a good way to determine of a debt settlement company is on the up and up is to carefully consider what they promise. A reputable debt settlement company will not promise to quickly and easily fix your debt problems, or to magically keep your credit score from being affected. There is no quick fix for serious debt, and debt settlement does have consequences. In fact, your credit score will go down before it goes up! Any company that pretends otherwise is not a company you should trust.

2. Debt Settlement Services Offered

Tolstoy once wrote, “Happy families are all alike; each unhappy family is unhappy in its own way.” Similarly, each person’s debt problems are unique, so it is important to consider the particular services offered by different debt settlement companies, to find the right fit for you. That said, there are a few services that every consumer should look for in a debt relief company.

First, make sure that the business you choose employs IAPDA certified debt arbitrators. IAPDA stands for International Association of Professional Debt Arbitrators, and their certification ensures that the people handling your debt settlement are well versed in the legal and financial issues involved in all kinds of debt situations.

Also, you might want to ask if the debt relief company offers any sort of bankruptcy assistance should the debt settlement process fail. Some debt relief services offer a partial refund of program costs to help cover bankruptcy expenses; the existence of such a policy is a good indicator that a company’s first priority is its customers’ best interest.

Most reputable debt settlement services offer a service guarantee, whereby fees are waived or refunded if the company is unable to achieve debt settlement. Companies without this guarantee have little incentive to aggressively pursue your debt settlement.

Finally, one service you don’t want is for your debt settlement company to report their activity to the credit bureaus that determine your credit score. Creditors report negative activity, but debt relief organizations should not.

3. Affordability

Last but not least, of course you should choose a debt relief company that fits your budget. The last thing you want to do is add to your financial problems by choosing a debt settlement service you can’t realistically afford! Remember that certain nonprofit and government organizations provide free or discounted debt counseling, and numerous Internet and print sources exist to help you make the right decisions about debt settlement.

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