subject: Debt Relief Services-Make Sure You Ward Off From Companies From Bad Settlement Firms [print this page] Debt Relief Services-Make Sure You Ward Off From Companies From Bad Settlement Firms
One of the main reasons why a customer opts for a debt settlement company is that his debts are too high for him to be able to pay it off completely. Another major reason is the high interest rates that the credit card companies are charging at present. There are companies who charge as high as 30% interest. A little neglect can put you in an unending debt cycle. However, the main reason why a person chooses a debt settlement company is that he wants to have a debt free life at all cost. Closing all debts is the number one motto and they are ready to handle some negative impacts of debt settlement to have a debt free life.
There are mainly 2 types of companies which offer debt settlement options. The is a non-lawyer based firm which covers almost 95% of the debt settlement companies and the second is a law firm which offers debt settlement as one of its services. There some main points which a customer must keep in mind while choosing a debt settlement company.
How much will the company save for you: An individual can get up to 20 % saving if he negotiates the debt settlement himself. For more than 20% settlement one needs to take professional assistance. A good debt settlement company should be able to get you at least 40% debt settlement. One must not fall for the sales talk of the company representative. Some companies will agree to almost anything just to get a payment from you. Do not believe a company which offers an unrealistic amount.
Get a time limit from your debt settlement company: You must get a realistic time frame from your settlement company. A good company can get you debt free in a short period of time. Any payment plan which takes more than a period of 3 years is not beneficial. Most good companies can make you debt free within 2 years or less depending upon the amount. If the payment plan stretches for more than 3 years the benefits of debt settlement reduce considerably due to the added interest on to your account.
Stop those collection calls: A debt settlement company has to make arrangements to put a stop on the annoying collection calls that you get at all hours of the day. If you are being represented by a lawyer then by law the 3rd party collection company must deal with the lawyer rather than the debtor. A good debt settlement company arranges with the creditors to put a stop to these calls.
Reputation of the company: One must check for the debt settlement company's reputation before signing up with them. BBB or Better business is a good place to check for a company's reputation.
With these points in mind it will be easy for you to locate a good settlement company. This in turn will put an end to your financial worries.
