subject: Debt Relief Issues - Don't Be Fooled By The Irresponsible Debt Settlement Companies [print this page] Many people trusted some debt relief companies and ended up on the verge of bankruptcy. These companies used different methods to keep people paying without obtaining any results for their situation. Then, they were gone and so were the money people paid to get rid of their debt.
The first thing you need to do when you start to find a debt relief option is to inform yourself about the ones available. There are many people who don't know the difference between debt management, debt consolidation and debt settlement but start looking for a company that will help them with debt. You have to know what fits you best first, before hiring a company.
Debt consolidation is a process that people with multiple loans use to pay the loans they have with a loan that has little interest rates. It is a very good option on long term and it can help you a lot.
Debt settlement implies negotiating with the creditor in order to get a part of your debt reduced. This can be between 40% and 70% and the rest of it can be paid in installments.
Debt management is the option that helps people regarding debt, loans and other financial matters by giving advice and helping them with different procedures involving debt.
When you first go to a company you should have a list of questions prepared. Some of these questions should address problems like: the disadvantages of their option, the fees, the payment options and the history of their company. Also, you should ask for a portfolio and for recommendations from other clients. Any respected company will help you with those questions and those requires. If you are not satisfied by their answers and you think that they might lie regarding these matters you are free to search for another company.
A good way is to ask people who have already used a debt relief company for the name of that company; this way you can make sure that the company you use is trustworthy. If you don't know anybody, asking a lot of questions about them and using your common sense will help you figure out if the company is a fake or not.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
Debt Relief Issues - Don't Be Fooled By The Irresponsible Debt Settlement Companies
