Outsourcing, globalization, the housing bust, and rising interest rates have all combined to put a lot of people deeply in debt. Worse yet, many Americans who find themselves in trouble are used to being seen as pillars of their communities - they were doing great in the 90s! - which makes being in debt so much more humiliating, and makes the people who find themselves in that situation all the more desperate.
Very few debt settlement firms are not taking advantage of these individuals who are embarrassed of their credit scores. It's hard to find someone to believe in because everyone knows a reputable firm has two objectives - 1) to help you and 2) to charge you for the work. This is the basis of any company, but some debt settlement firms take it a little too far. In fact, they try to charge a percentage of your total debt while keeping majority of your first payments as deposits to their fees. You may consider this a life-changing event because you're giving your money to a company for nothing. If you'd like to avoid this type of treatment, consider our tips on how to find a legitimate firm to manage your debt settlement needs:
1. Request a free consultation and see what the debt settlement firm does. If they refuse to speak with you, evaluate your financial situation, and then offer an upfront fee - stop talking and hang up. This company is out to make a profit off of your issues and it's not going to help you.
2. Upfront fees for a typical discussion is a red flag of a company's true intentions. Free credit consultation, their procedures, and information on how to manage your debt. Some companies are more than happy to help you rebuild your credit without taking a chunk of your money. Reputable firms are concerned about your well-being, plans, and your ability to repay your debt in a systematic method. Actually, the best companies try to offer you a way to settle your debt without using their services (how many are out there with this kind of heart?).
3.Beware of "too-good-to-be-true" offers: If they claim that they can solve your problems by saving you an outlandish amount of money (like 80% or more) or without hurting your credit, they are lying. Also, debt settlers are not able to prevent you from getting harassing phone calls. Only you can do that, and only once you've made up your mind to not pay the debt. You should also beware of companies that put aside less than 45% of your total debt to be used for settlement, as well as companies that charge 20% or more in fees. Some companies don't even want to tell you about their fees.
4. A company must be TASC compliant in order to manage a consumer credit settlement issue. If a company does not have a TASC compliant disclosure page, they are not the ones for you. Debt settlement firms should remain TASC compliant which states they uphold a strong ethical and professional standard when managing such sensitive accounts. Without these standards, consumers are fragile and vulnerable to disreputable firm scrutiny.
Consider all of these possibilities, problems, and the overall result of a debt settlement firm. Do you want to go through with this without making progress? There are a lot of options available for you if you want to settle your debt in a smart, manageable way. Learn the ropes of credit then tackle it with a strategy based on your ability, financial stability, and passion to correct your credit.
Very few debt settlement firms are not taking advantage of these individuals who are embarrassed of their credit scores. It's hard to find someone to believe in because everyone knows a reputable firm has two objectives - 1) to help you and 2) to charge you for the work. This is the basis of any company, but some debt settlement firms take it a little too far. In fact, they try to charge a percentage of your total debt while keeping majority of your first payments as deposits to their fees. You may consider this a life-changing event because you're giving your money to a company for nothing. If you'd like to avoid this type of treatment, consider our tips on how to find a legitimate firm to manage your debt settlement needs:
1. Request a free consultation and see what the debt settlement firm does. If they refuse to speak with you, evaluate your financial situation, and then offer an upfront fee - stop talking and hang up. This company is out to make a profit off of your issues and it's not going to help you.
2. Upfront fees for a typical discussion is a red flag of a company's true intentions. Free credit consultation, their procedures, and information on how to manage your debt. Some companies are more than happy to help you rebuild your credit without taking a chunk of your money. Reputable firms are concerned about your well-being, plans, and your ability to repay your debt in a systematic method. Actually, the best companies try to offer you a way to settle your debt without using their services (how many are out there with this kind of heart?).
3.Beware of "too-good-to-be-true" offers: If they claim that they can solve your problems by saving you an outlandish amount of money (like 80% or more) or without hurting your credit, they are lying. Also, debt settlers are not able to prevent you from getting harassing phone calls. Only you can do that, and only once you've made up your mind to not pay the debt. You should also beware of companies that put aside less than 45% of your total debt to be used for settlement, as well as companies that charge 20% or more in fees. Some companies don't even want to tell you about their fees.
4. A company must be TASC compliant in order to manage a consumer credit settlement issue. If a company does not have a TASC compliant disclosure page, they are not the ones for you. Debt settlement firms should remain TASC compliant which states they uphold a strong ethical and professional standard when managing such sensitive accounts. Without these standards, consumers are fragile and vulnerable to disreputable firm scrutiny.
Consider all of these possibilities, problems, and the overall result of a debt settlement firm. Do you want to go through with this without making progress? There are a lot of options available for you if you want to settle your debt in a smart, manageable way. Learn the ropes of credit then tackle it with a strategy based on your ability, financial stability, and passion to correct your credit.
About the Author:
With over 20 years in the consumer debt consolidation field, Daniel R. Michaelson is one of the leading authorities on Bad Debt Consolidation.
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