Home | Finance | Debt Consolidation

Questions you should ask a Debt Assistance Business

By: John Glenn A

Read More About Debt Consolidation

Always Ask These Questions Before You Employ a Debt Negotiation Company

Does the Business have an "A" rating with the Better Business Bureau?
Always confirm with the BBB the rating of a Debt Negotiation Company before you employ them. Don't just take the organization's word for it. Call the BBB and inquire about the company.
How Much Does the Assistance Cost and When is the payment Taken?
Most Debt Assistance Businesses collect 15% to 20% of your total debt as a fee for their service. This compensation is calculated on the amount of debt you have when you enter into the program and is collected up front. With the organization's upfront fee collected in the first 12 to 18 months, the majority of what you pay into their service is taken by them as compensation. Once they have received their fee there is no incentive for them to do their job.
In a bona fide Debt Assistance Service you only pay a small admittance fee to go onto the Program, so what you put into the Service is actually saved and not eaten up in fees. The settlement fee is calculated on the amount forgiven by your creditors. This means the fee is calculated on the amount the business saves you. The business should only receive a settlement fee once a settlement has been completed. This helps you to get out of debt much more rapidly and gives the company compulsion to get you the best possible settlement!
Does the Debt Settlement Organization offer Debt and Credit Counseling?
Most Debt Reduction Organizations offer only debt settlement. A true Debt Assistance Company
will offer Credit and Debt counseling as well as Debt Consolidation and Debt Settlement Programs. Your Credit Counselor can help you explore all your options so you can pick which program is right for your situation and budget. The organization should not encourage one service but should help you in choosing the most appropriate service for you.
How Long has the Debt Reduction Company Been in the Debt Relief Business?
If it is brand new or a start up in the business, the organization will have little experience. Always beware of a organization that won't provide proof of their experience.
Can the Debt Negotiation Organization Stop the Collection Agencies From Calling Me?
No Debt Relief Business can promise they will end all creditor calls. That is simply not feasible. Anyone who says they can is not telling the truth.
Will The Debt Reduction Companies be making monthly payments to the Credit Card Companies?
The Credit Card Companies are not paid until an acceptable settlement is reached and agreed to. Therefore, Debt Relief Companies do not make monthly payments to the creditors. That is simply how the program works. Any Debt Relief Organization informing you otherwise is not being honest.
Can I be sued?
A credit card company can always sue you. If you are informed of something else, a red flag has just been raised. The debt reduction business is not telling the truth.
Will This Hurt my Credit Report?
Inspite of what most people think or believe, all debt settlement programs will have a negative effect on your credit score. Think about it,you are in debt and are not paying as agreed. The debt assistance service is meant only as a management tool. However once your debt has been forgiven, your accounts will show a $0 balance and you will begin the process of reestablishing your credit score.
When Will I Receive My First Settlement?
While this varies in every case, your first settlement can be made within the first 12 months from the start of your service. Longer than 12 months is unacceptable and the company that tells you this is not a good match for you.
Where is the Money Kept While I'm Waiting on a Negotiation?
This is a very important question. Your money must always be kept at a third party escrow organization that is FDIC insured. Any business informing you to save your own money or to send the money to them is probably not the one for you. If you plan on settling your debt, you will need to have the money ready to pay the creditors when the settlement is agreed to.
These questions are suggestions. The most important point is to ask questions and get the answers to those questions. With your questions fully answered, you can find the Debt Settlement Organization Organization that is best able to help you.

Article Source: http://depositarticles.com/

Debt Settlement Company Debt Reduction Program Debt Relief Program

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Debt Consolidation Articles Via RSS!
Additional Articles From - Home | Finance | Debt Consolidation
Sign Up for a free account.
Our other websites
All about SEO
Beauty Tips Forum
Submit Articles
Member Login
Link Us
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Sitemap
New Stuff
About Us
Developer
Good shopping portal
Link to Us
Contact Us
Privacy Policy
Terms of Service

counter easy hit

Powered by Article Dashboard