Debt settlement can help relieve the pressure of paying off your credit card loans by reducing the amount creditors are willing to accept to call things square. The strategy involves negotiating an agreement to accept a one-time payment in full of a mutually suitable amount to settle the account.
While anyone can do this on their own, it’s often more beneficial to engage professional help in this regard. The process is time-consuming, tedious, and full of subtle nuances you’ll only encounter with experience.
This brings us to the need for evaluating credit card debt relief programs.
Researching Credit Card Debt Relief Companies
These can be treacherous waters to navigate. The nature of debt relief programs varies widely from company to company. Moreover, there is a very real chance you’ll run into an organization posing as a provider of the service when in reality, they’re just out to make a fast buck. Observing the following considerations will help you find an honest and effective partner.
Affiliations: The American Fair Credit Councilis the leading national association of debt settlement companies. Formed in April of 2011 to advance full compliance with FTC regulations in the debt settlement industry, the AFCC fights for the rights of consumers.
The council’s member organizations agree to abide by a strict Code of Conduct and are required to follow stringent regulatory guidelines for operation. In addition, all AFCC members operate on a “No Advance Fee Model”. These firms never charge a fee for services until a consumer’s debt has been successfully negotiated.
Qualified Consultants: What is the background and training of the people who will be negotiating on your behalf? The best credit card debt relief programs have tax lawyers, accountants, and CPAs. They also insist upon having their operatives both trained and certified in debt relief specialties. The AFCC, as mentioned above, audits these companies to ensure those standards are met. Asking questions along these lines during your initial consultation will help you determine the veracity of the people with whom you’re speaking.
Free Consultations: The law prohibits credit card debt relief program providers from charging fees before settlement agreements are reached, accepted, and executed. Any firm trying to get you to pay upfront is operating outside the bounds of the regulatory structure governing the industry. Initial consultations and evaluations should always be provided free of charge.
Transparency: There are no guarantees when it comes to credit card debt relief. Honest companies will tell you that. Creditors are unpredictable, situations vary and people have moods. Any of these factors can render a settlement offer rejected. This is why programs are not allowed to charge you until they’ve secured a settlement deal for you. Moreover, all associated fees for the services they provide should be disclosed and explained before you’re asked to sign a contract.
Customer Reviews: Every organization will have testimonials on its website, that’s just the way business is done these days. You’ll need to consult organizations like the Better Business Bureau and your local attorney’s general office to get the real skinny. Third-party review sites can be useful as well. However, you must make sure the site isn’t in the business of selling positive reviews.
Following these guidelines for evaluating credit card debt relief programs will help ensure you get an honest company with qualified individuals to advocate on your behalf. Always take your time, read everything, ask questions, and don’t let anyone fast talk you into signing anything until you understand it completely.
