subject: Debt Relief Options - Things To Consider Before Picking A Debt Settlement Company [print this page] The number of people who are looking for financial freedom has increased considerably within the past year due to the new Governmental programs which aim to lower the consumers' credit card debts. Now anyone who has an unsecured credit card debt (and not the ones who contracted credits backed by assets or student loans) has the possibility of settling their debt with the credit card company, through a debt negotiation company that does all the hard work for him.
However, there are several things to consider before picking a debt settlement company. First of all, the company you select needs to have a BBB (Better Business Bureau) certification which assures their dependability and experience in the field. The company should also be a member of the Chamber of Commerce and their employees should be certified.
Be wary of the companies that promise you results too good to be true, like lowering your debt by 80-90%. In most cases, after a successful debt settlement, the client's unsecured debt is lowered by an average of 50%, so the companies that promise you much more than that are nothing but scams.
Do not believe when they tell you that the debt settlement won't negatively affect your credit score. They lie. Anytime a credit card debt is settled for way less than you actually owe, that will have a negative impact on your credit score; however, this impact will be less painful than in the case of filling bankruptcy.
Pay attention to the new interest rate your loan has. If you have to pay a huge amount of money just to get rid of the hassle of managing your debts yourself, then you can start looking for a better offer. The debt settlement program must be realistic and possible to include in your monthly budget.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.
