Today there are hundreds if not thousands of debt relief companies available on the internet. Just type debt relief into Google you’ll see what I mean. The question is how do you know which one to pick?
In this article I’m going to give all the advice you will need to pick a company that will help you get out of debt once and for all.
What Are The Fee’s
The first thing you should consider is the fees. Many debt relief programs won’t show their fees on their website or they’ll make them hard to find. However, the typical rate most companies charge is right around 15% t0 17% of the total amount of debt owed. This will a lot of times be part of a monthly fee.
The second fee you might also pay is a onetime fee to have a company negotiate your debt for you. Beware of high fees and charges. Just because someone is over charging for a service like this doesn’t mean it is worth what they say it is.
How Will The Debts Show Up On Your Credit Reports
Next, you need to consider how the debt will look on your credit report once it is paid off. This means a great deal to your credit status if you don’t do this right.
Once the debt is paid you don’t want it show up on your credit report as, “Pay for Delete,” or “Paid as Agreed.” This will show your creditors that you didn’t pay the full debt.
Instead request that your debt read as, “Paid In Full.” This will show the creditors that you paid the entire balance as required. Also if they agree to do this make sure you get it in writing before you pay them one iota.
What Will Your Combined Payment Be
When you sign up with a debt negotiation program they will combine your payments of all the debts that get accepted into the program and merge them all as one big payment that you will pay every month. The question is what will that payment be?
This will be different from company to company. The best thing do when you’re shopping around is to talk to several companies and have them give you an estimate.
You will also want to ask them how much of the payment you are paying to them each month will go to them. While every company does this different a lot of them will put their fee’s up front when you’re in the program that way if you bale out later on and don’t finish the program they will have at least got their money.
The down side is this could put your credit score at a huge risk. Once the debt negotiation company is control they can pay your debts any way they want and if they want to neglect a couple of your payment they will. Instead ask them how they will subtract their fees and pay your debts once the program starts. Knowing this beforehand will eliminate some of the headaches like a bad credit report or worse getting calls from collection agencies.
Which Bills And Debts Will Be Included
Whatever companies you choose you need to realize that not all of your debts will be included. Debts like mortgages, home equity lines of credit and other secured loans are usually never accepted into the program.
It will also vary from company to company to what debts will be included as well. Some debt negotiation programs won’t be able to negotiate a deal with your creditors while others will.
How Long Will It Take Me To Complete The Program
Next you need to consider how long it will take you to complete the program. A good debt negotiation company will have you in and out in 48 months or less.
This will obviously be different from company to company but it wouldn’t be a bad idea once you’ve discussed your financial situation with them that you get an estimate of how long it will take you to go through the program. Then once you’ve decided on a company make sure you get in writing the length of the program.
What Are Their Accreditation’s And Reputation Like
Finally, what are the debt relief programs accreditations? They should be registered with the Better Business Bureau and D&B listed (Dun & Bradstreet). Both of these companies can be a great resource to learn more about a company.
They will have detailed info of any complaints they may have received and will also be able to tell you what kind of credit history they have had as well.
You should also take some time to read reviews around the net of the debt company you are considering. However the web is a free speech environment so be careful of what you consider as true or false.
Articles that run the company into the ground and give no valid reasoning or details should be ignored. Instead look for articles that give creditable points and ideas. Also look for reviews from people that have actually used the product, this will give you the best insight.
It’s Time To Choose
OK, are you ready to choose? I’ve probably left you with more questions than answer, especially if you new to this. If you’re still looking for more answers or would like to leave some of your own insights feel free to leave a comment.