subject: Debt Settlement Programs - How They Affect Your Credit And Where To Find Legitimate Services [print this page] Debt settlement companies provide professional support to the customers. The companies help the customers to reduce the interest rate. After the 2008 financial recession 70-80% of the customers are facing the challenge of debt. Job loss and financial crisis is forcing people to leave their bills unpaid. Every second person today is standing delinquent on their debts which ultimately end up in the hands of creditors who most of the time try to aggressively collect on the outstanding balance.
Turning over accounts to debt collector's is heavy expense for credit giving institutions. It also mars the credibility of the company with its customers. Any harassment to any customer in the hands of collectors spreads word of mouth and does not do any good to the name of the institutions. These were some of the reasons when institutions found most of the debts going bad they decided to declare themselves bankrupt.
Settlement programs have helped institutions and individuals to come to terms with each other. It helps the customer to negotiate with the institution as a result the customer gets lower rate of interest on his debt and the institution get back the capital invested in the market.
To find the legitimate services one should look for legitimate debt settlement companies with good track record by shopping around and asking friends and relatives. The company should have affiliation with associations and networks which proves its legitimacy for e.g IADPA.
Settlement programs are designed to support the customers in financial distress. People should validate companies legitimacy before signing them up.
If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt.
