subject: Debt Relief Services – How Would You Know That You Have Chosen The Right Debt Relief Provider [print this page] Debt Relief Services How Would You Know That You Have Chosen The Right Debt Relief Provider
If you have accumulated too much credit card debt and are considering bankruptcy, then a debt relief program will be of great assistance to you. Such organisations which provide debt relief help their customers in reducing their monthly payments to a level which they can afford and hence prevent bankruptcy. When a debtor is looking out for debt relief services there are a few points which he must keep in mind to keep off from the fraudulent companies which try to take advantage of their situation.
List out all the debt relief organisations operating in your area. Bigger cities have more choices than a more rural area. In case you are in a rural area where your choices are limited then you can select organisations which are operating outside your community. Most debt relief service providers offer their services through their local offices, internet or over the telephone. The federal Trade Commission strongly recommends choosing a debt relief agency which will provide in person consultation.
Then you need to check the legitimacy of organisation by checking it up with your state's Better Business Bureau. It is preferable to choose a non- profit organisation where you can save up on the service fee. If a company charges its customers a monthly fee then it is best to drop out that company and look for another agency. Under all circumstances you should get to know about the fee structure before you sign up for the program.
Get in touch with the debt relief agency which you think is legitimate. You must take all your monthly bills and financial statements for a thorough analysis by the counsellor. Make sure you do not release you account number until you have signed on a contract with the debt relief company.
During the in person consultation the counsellor will provide you certain information. You need to review this information for the cost and time involved in the debt relief service suggested during the counselling. The most common service a debt relief agency offers is through debt management plan. They offer to consolidate all you loans and take one loan with a lower rate of interest. Another popular option suggested is the debt settlement. In this process the debt relief expert offers the creditors a certain amount of payment usually 40 % to 60% of the total debt in lump sum in exchange of a waiver of the rest of the loan amount. Most debt relief programs take a period of 3 to 6 years to get paid off depending amount the amount of debt as against the 20 year span.
A counselling session does not affect your credit rating and a non- profit making agency will provide it for free. It is best to take advantage of such sessions in order to determine which debt relief program is most suitable for you.
