In the past few years, debt settlement has become a very popular alternative to bankruptcy, and ads for debt settlement companies seem to be everywhere. So, where do you go if you want a reputable and honest debt settlement company to help you deal with your huge amount of debt?
The Internet is a great place to start, but you should be careful and not let a high-pressure salesperson "suck you in." In fact, I wouldn't even think about working with a company whose sales tactics are meant to make you feel rushed. Most of the time, these kinds of companies want your money more than they want to help you with your debt problems.
Also, if you can't find a company that doesn't require a monthly payment plan, make sure that the company you're thinking about doesn't take its fees before doing the work. It may be hard and take a long time, but you can find debt settlement companies that work on a contingency basis and don't charge fees up front or on a monthly basis. It's well worth your time to look for these companies. After all, if you pay the company's fees in advance, what reason does it have to negotiate the best possible deal with your creditors?
When it comes to fees, there is a lot of change in the debt settlement industry. Some companies charge a percentage of your total debt (usually 10% to 20%), while others charge a percentage of the money you actually save. This range can be anywhere between 15% and 25%. You should do a lot of research to make sure you hire a company whose fees aren't too high and won't break you, but whose business practises are honest and professional.
Checking a company's Better Business Bureau (BBB) record is one of the best ways to find out if it is honest and professional. This is more than just looking at their "online trustworthiness" report. Check their real BBB record if you have the time. Even if a business isn't a member of the BBB, you'll still be able to find out if there have been any complaints. I've looked at the BBB records of many debt settlement companies, and I'm surprised by how many complaints have been made. This made me think that the only reason many of these companies are still in business is because people don't do the right thing and look at the companies' reports before hiring them. Your overall financial situation is important and relevant, and there's a lot of money at stake here. Take your time and only hire a company with a good BBB record.
Lastly, trust your own instincts. Since you're aware of your situation and looking into ways to get out of debt, I'm going to guess that you're smart and capable. With that knowledge and skill, I'm sure you'll be able to tell right away during your first phone consultation if the company you're talking to really wants to help you or just wants your money.
You've already taken the first step toward getting out of debt. I hope the best for you.
