Looking for legitimate debt settlement companies can be quite difficult. Some of these companies tend to have a bad reputation, and a lot of them are only a waste of time and money. These companies are usually the last resort of people who are eager to be free from their debts. Good thing, the Federal Trade Commissions has come up with a list of things to keep in mind before signing up for a debt settlement company.
First of all, you should search for legitimate debt settlement companies online. You should go to the official website of the Better Business Bureau and find out which companies are reputable and reliable. You should only sign up for a company that has a good standing. Surely, every company will say that it is reputable and reliable. Even though they seem convincing, you should not trust them completely. Instead, you should consult the Better Business Bureau.
In addition, you should see to it that the debt settlement companies you are considering have written procedures and policies. They should also settle the debts themselves and not hire a third party to do the job. They should have open door policies for regulators. Also, you should verify if the information given by these companies is accurate. You should only consider companies that are willing to disclose vital information.
For instance, you should check if they have written disclosures of their fee structure. You should check if they disclose that credit agencies can still call you even if you are currently enrolled in a debt settlement program. You should also verify if such debt settlement can damage your credit significantly, as well as if the company can guarantee results. You should take note of the companies that tend to sue instead of accepting a settlement.
Of course, you should only go for debt settlement companies that offer a refund or money back guarantee in case they were not able to settle your debts. You should stay away from the ones with unreasonable fees and unbelievable promises. Do not choose companies that promise clients that they will be debt free in an unlikely timeframe. Remember that if an offer is too good to be true, it probably is.
Also, you should avoid companies that charge a lot of money. Fees usually range from fourteen to eighteen percent of the debt to be discharged. You should never agree to pay more than thirty percent. In addition, you should stay away from companies that escrow the money of their clients. You should not readily believe them when they say that they will save your money before they pay your creditors. They may be scammers, for all you know.
It is important for you to realize that your credit is most likely to suffer when you seek help from debt settlement companies. Worse, you may incur extra interests and fees. You may think that you are saving money by signing up with a company that offers a discount; but in reality, you are actually paying more when your fees and interests add up. Hence, you should be very careful when choosing a debt settlement company.
Furthermore, you should remember that these companies are required by the Federal Trade Commissions to tell their clients how long the entire debt settlement process is going to take place. They should also tell you about the consequences of any late payments for your credit.
Debt Settlement Companies can also benefit your company by freeing up valuable cash-flow.