subject: Debt Settlement - Is Working With A Debt Settlement Company Right For You? [print this page] A lot of companies have entered the debt settlement industry and are providing this service to the financially distressed debtors. Even though stringent rules have been laid by Federal Trade Commission (FTC), there is still mixed opinions about the services offered by debt settlement companies. Some reviews of debt settlement companies are of satisfied debtors, however there are certain reviews which mentions that the services of these companies is not worth the price charged. If you are looking for an answer to whether working with a debt settlement company right for you, this article comes handy.
Debt settlement companies can help you settle up to seventy percent of your total debt. Also, FTC has banned the collection of upfront fees by these companies to safeguard the interest of the debtors. This means that one has to pay the fee of these debt settlement firms only once they fulfill the promise and settle the debt as agreed. This has weeded out many fake settlement companies which were set up only to charge upfront fees by making false claims to the debtors for settlement of their debts with the creditors. However, the fee charged is hefty and is a burden on the debtor who is already facing a miserable financial crunch. Also, the success rate of these companies is not very encouraging. It is seen that some debtors drop out during the process of negotiations as the services of some of these debt companies is not up to the mark.
It can be concluded that the decision about working with a settlement firm or not is case specific and shall be based on various factors. Some of these factors are comparison of promise made by these companies and the amount of debt that can be negotiated without taking help from these companies, fees charged, cost benefit analysis, goodwill of these companies, etc. Not only is it important to evaluate whether these companies shall be approached to settle debt but also the best companies shall be sought after in this regard. You must know and evaluate the need before actually choosing any of these companies.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:
Debt Settlement - Is Working With A Debt Settlement Company Right For You?
