Choosing the Debt Settlement Company Right for You

In the face of a struggling economy, Americans are now facing more debt than ever. Having a good credit standing can mean the difference between no loan and an affordable loan, and when your credit’s in bad shape, you’ll most certainly pay for it in terms of higher interest rates, should you even land approval in the first place.

Look for Accreditation

Make sure your debt settlement company is accredited by either the United States Organizations for Bankruptcy Alternative – A Debt Negotiation Association (USOBA) or The Association of Settlement Companies (TASC), because this reduces the risk to you as a consumer, and adds credibility to the company.

Delve into the Costs

Yes, debt settlement companies will charge a fee to handle it for you. It will cost you money, but it should save you money in the end. Ask about costs and full details of what you’ll be paying, to see which company offers the best service for the best deal.

Look for Guarantees

What sort of guarantee to do they offer? Be wary of companies that say the process will not affect your credit score. Any company that’s doing their job right will guarantee a refund of your money, without fee, if they are unable to settle your debt. Any company doing their job right will tell you that your credit score will go down (while kinks are being worked out) before it goes back up, once the debts are settled.

Bankruptcy Assistance

Some companies may also offer assistance with bankruptcy. Consider, however, the fees they charge you are going to an attorney to assist with the case, not them directly. Even if you’re not interested in a bankruptcy assistance service, companies that offer this do tend to have your best interests, as the consumer, in mind.

Debt Negotiators

IAPDA certified negotiators will understand the laws and regulations, and be better able to understand your situation. It’s best to avoid companies that are not using IAPDA certified debt negotiators.

Look at the Better Business Bureau

Don’t panic if you don’t see your debt settlement company listed – these companies are not recognized by the BBB, and some states don’t allow them to be listed. If you do see one listed, they are likely rated D to F simply for the industry they are in. They could have a stellar customer record even though they are so poorly rated, so this is something to consider when you evaluate your choices.

Visit Your Local Chamber of Commerce

Does the company you’re considering belong to the Chamber of Commerce? If you’re not dealing with a local company, are they a member of their local Chamber of Commerce? Are they a member of the United States Chamber of Commerce? Any company listed here is known for their reputable way of conducting business, so take this into consideration as you narrow down the choices.

If you are one of the millions of Americans suffering under crushing debt, first, find company in the fact you are not alone. Second, realize there are debt settlement companies out there that can help you get rid of the debt in an affordable way. Third, realize that not all of these debt settlement companies are created equally, and you must do your homework to ensure you work with one that has your best interests in mind.