Millions of Americans currently face the possibility of being delinquent on their credit cards. While facing this issue can be unpleasant, the good news is that a legitimate debt settlement and consolidation company can help you settle your debts including credit card debt, debts from medical bills, business debts, or debt accumulated through personal loans. Perhaps you are facing a repossession or other repercussions from paying bills late or not at all. Settling debt and enrollment in a debt relief program can often help to avoid or positively resolve these type of negative consequences.
Obtain All Debt Consolidation Service Agreements in Writing
Consolidating your debts does not have to be difficult. With the right approach, you can ensure that your debts will be settled at 30% to 70% of the outstanding balance.
The first way to ensure your debts are handled in this manner is to obtain every agreement in writing. An honest and trustworthy debt consolidation company will also allow you to take back any funds in your “FDIC-insured Special Purpose Account”; that may be leftover after the consolidation, negotiation and settlement process. A legitimate debt settlement company does not charge upfront fees and will guarantee in writing that any leftover funds will be returned to you upon completion of the program. Not all debt consolidation companies agree to this measure for their customers. Take the time to read through a company’s policies and determine whether you will receive any leftover funds back after the negotiation process.
Educate Yourself About Debt Consolidation Options
It may also be important to you to educate yourself in regards to how debt consolidation works as there are different types of debt consolidation strategies that you can use to get out of debt. One of the benefits of working with a debt settlement company is that they are working with multiple accounts, have preexisting relationships with creditors and that funds and negotiations are leveraged by a larger account of funds. Professional negotiators will keep funds in this account while they negotiate with creditors to decrease the debt load that individuals will repay. Each person has his or her own Special Purpose Account for the purpose of storing funds. You can log online to see the status of this account. After the creditors achieve a settlement of the lump sum of debts from individuals, then you will be able to see whether any funds are leftover from your account. Again, a trustworthy debt consolidation company will ensure you receive these funds back through a written agreement.
Keeping the Lines of Communication Open with Your Debt Settlement Company
Having your agreements completed in writing is not the only essential part of finding a trustworthy debt consolidation company.
Another important aspect of finding a good company that appreciates and properly manages your business is communication. Communication means everything in the world of debt settlements because it is the way customers stay aware of the status of their debt load and whether it has decreased. Honest companies with integrity will always be available to customers through e-mails, mailings, or phone calls. They will also have financial counselors on hand for resolution of any issues that customers may face. You can ask a debt consolidation company to report on the progress and the status of your debts. The best companies will have no problem in communicating this progress report to you. Because you will be making monthly payments to a debt consolidation company, time is of the essence in resolving your debt situation. Stay in touch with your debt consolidation company on a regular, sometimes even weekly basis.
Developing a Relationship With Your Debt Consolidation Company
A trustworthy debt consolidation company also takes on the right approach in marketing its services to customers. Pay attention to the tone of conversations that you have with financial counselors at a debt consolidation company. Beware of a financial counselor that avoids answering any complex questions your ask, or they may try to take fees from you before answering simple or straight-forward questions.
These are signs that a company has an approach to debt negotiations that is not legitimate or worthy of your trust.
Do Your Homework on Debt Consolidation Companies
The Internet is a great resource for evaluating debt consolidation companies as are review websites. Above all, listen to your own intuition in choosing a company for handling your debts. Pay attention to whether you are feeling anxious, nervous, or a bit afraid to work with a company.
Use your common sense and work with companies that invest significant time and thought into decreasing your debt load.