If you have been searching for the best debt settlement companies you are not alone. There are thousands of American consumers who are struggling with debts and majority of them look for ways of getting help. The primary cause of your debt does not matter at this point; whether your spouse lost his or her job or medical bills that were not planned for put you in a financially constrained position. However what matters is getting the right debt settlement company that can efficiently work for you.
It is not an easy task to search and get the best debt settlement company. However many people prefer the debt relief solution compared to credit counseling debt management plan because the former offers a more substantial reduction of debt. In addition it assures creditors and credit card companies a greater assurance of collecting quick payments. So failure to take your time and locate the right debt settlement company for your needs can lead you to disaster.
You can start you search from the internet. Although the main aim of these companies is to negotiate a huge debt reduction of your entire debt including the principal fees and the interest every company is unique in its service delivery. However the key differences in these companies include the fees negotiation strategies and the customer service. So it will be more advantageous to you if you start your search from the internet so that you can compare the different options that you will get. These three tips will be of help to you.
You Should Never Pay Any Fees in Excess
With regard to federal regulations fees for debt settlement must be calculated in accordance with the amount of debt that is enrolled in the program for debt settlement. The average fee in this industry is usually 15% of the overall enrolled debt. However many of these debt settlement companies usually exploit their clients with exorbitant fees. This means that any fee that exceeds the 15% is considered excess. For example a 20% fee on a $20000 debt will make you pay $4000. Besides a high fee is a sign that the debt settlement company may outsource the negotiations of your debt to a back end provider and therefore increase their operating costs. Or perhaps this company shares the fees with an affiliate then passes the extra cost on to you.
On the contrary the charges of the best debt settlement companies are cheaper because they do not need to outsource their services. In addition most of the businesses of these companies normally come from direct referrals or word of mouth.
Do Not Accept Debt Reduction Programs That Are Beyond 36 Months
Debt settlement programs should be completed within 36 months. However the best debt settlement companies take 12 to 28 months to complete their programs because this helps their clients to pay less interest charges and credit card fees. In addition they know that if they extend this period to 48 months or more the risk of collection lawsuits increases. So the sooner you settle your debt the lesser the potential of wage garnishment or property lien and the more you will save.
You Will Get the Best Results from an In-House Negotiator
The best companies will make efforts to have some staff that are trained on debt negotiations. However what really counts is the level of experience of that negotiator. In case you are served with a collection lawsuit by a credit card company a strong negotiator can really help you reach a settlement out of the court. Besides a professional assistance will help you reach the best settlement.
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