Debt Settlement Advice 101 – Basic Things That Every Consumer Should Know About Debt Settlements

debt settlement advice
by Thiophene_Guy

Debt Settlement Advice 101 – Basic Things That Every Consumer Should Know About Debt Settlements

Debt settlements have become increasing popular as a way for consumers to get out of and eliminate a percentage their debt. Many people who jump in the debt settlement process without knowing much about the industry often come out worse than before they got the settlement. Just like any industry, the debt industry has it’s share of scammers or unethical companies. Consumers need to know how to tell the difference between a legitimate debt company and one that should be avoided. This article will inform consumers of some basic principles they need to understand before jumping into the debt settlement process.

Make sure that the debt company has a performance based fee structure. This means that they only receive a percentage of the debt that they are able to eliminate not a percentage of the entire debt amount. Some companies will try to make their fee be a percentage of the entire debt amount and this will end up costing you a lot more money. Also, never agree to pay an upfront fee. You should only have to pay when the company is able to get an agreeable settlement.

Make sure the company has a refund policy. If a debt company does not settle your debt for an agreeable amount then you should not have to pay a dime.

Make sure that the company has been around for at least a year. It takes time to establish relationships with major creditors and established debt settlement companies are much more likely to get you a better settlement because of this.

You need to be at least $ 10,000 in debt in order to be eligible to utilize the services of a debt settlement company. If you are under $ 10,000 in debt it may be wise to try and negotiate e settlement by yourself.

If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.

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