As consumer debt continues to spiral out of control, debt relief is quickly becoming a major concern for many Americans. In 1999, American made $1.1 trillion worth of credit card purchases. In 2001, US credit card debt was around $690 billion. Unfortunately, in today’s unstable economic conditions, many Americans are forced to turn to credit cards as a way to expand their income. Consumer debt is at an all time high and Americans need to know what they can do to get out of debt. Consumers often seek the services of professional debt settlement companies to help them regain control of their finances. However, before making such an important decision, it is important to fully understand who you are doing business with.
The most important thing you can do when deciding to get help with your debt problems is to be an informed consumer. It is absolutely critical to do your research. Don’t rush into things; this can cause more harm than good. Before signing with any debt settlement company, be sure to ask the following questions and consider their answers:
* Is the debt settlement company you are considering accredited by the Association of Settlement Companies (TASC)? I personally would not consider doing business with any debt settlement company that is not! TASC accreditation reduces risk to consumers and provides overall confidence because the member business has been independently assessed by a third party for its competence and ability to perform. Any business that truly has the customer’s best interest in mind will take the time and effort to do so. While the process can be long and difficult, in the end it is what is best for the consumer and the business.
* How much does the service cost? When choosing a debt relief solution, it’s important to make sure the program is affordable and realistic within your monthly budget. If you can’t afford the program and join anyway, you’re only causing yourself more financial problems in the long run; however, if you can meet the program’s monthly financial requirements, debt settlement is a great form of debt relief for unwanted credit card debt. Most people don’t realize that debt settlement is the fastest and least expensive form of debt relief outside of bankruptcy.
* Does the company offer some kind of service guarantee? If so, what is the warranty? If a business cannot pay off its debt, it should never have to pay a fee, or the fee should be repaid in full. Also, stay away from any debt settlement company that promises a quick solution to your debt-related problems or tells you that debt settlement will not have a negative effect on your credit. By enrolling in a debt settlement program, your credit score will likely get worse before it gets better. This is a lower price to pay for receiving a substantial debt settlement and not having to file for bankruptcy! However, it’s important to realize that if you want to maintain “good credit,” you must pay your bills on time; anything else will hurt your credit score.
* Does the debt settlement company you are considering have IAPDA certified debt arbitrators? IAPDA Certified Debt Arbitrators possess a solid understanding of the laws governing the debt settlement industry and fully understand your current financial situation.
* Does the debt settlement company you are considering offer any type of bankruptcy assistance in case debt settlement does not work for you? For example, some debt settlement companies will offer reimbursement of some of the program costs to help pay for a bankruptcy attorney of your choice. Of course, the funds would have to be paid to a licensed attorney and not directly to you. Again, a company that does this will likely have your best interests in mind.
* Does the debt settlement company you are considering belong to the local Chamber of Commerce? If so, is the Chamber a member in good standing of the United States Chamber of Commerce? This type of affiliation will help ensure that the company conducts business properly.
* Is the debt settlement company you are considering a member of the Better Business Bureau? Really do not care. Unfortunately, the BBB still does not recognize debt settlement as an industry due, in my opinion, to being under-informed by the credit card industry and its agents, the credit counseling industry, on the effectiveness and success rate of debt settlement. its participants. In fact, in some states, the BBB has not allowed debt settlement companies to join the BBB, and the BBB has a rating scale that is skewed to give debt settlement companies a D or F rating only for the industry to which they belong. . This is a disservice to consumers, because it doesn’t allow them to distinguish between reputable debt settlement companies and less desirable ones. For consumers who are truly interested in doing the research to select a qualified debt settlement company, a great resource is the Association of Settlement Companies website, which is http://www.tascsite.org TASC is the watchdog group that enforces a strict code of standards and disclosures on its member companies. Businesses are monitored through a third-party “secret shopper” program to ensure they are consistently upholding the high standards that TASC stands for.