How to Choose a Debt Settlement Company

As consumer debt continues to spiral out of control, debt relief is fast becoming a major concern for many American's. In 1999, American's made $1.1 Trillion worth of credit card purchases. In 2001, American credit card debt hovered around $690 billion. Unfortunately, in today's unstable economic conditions, many American's are being forced to turn to credit cards as a way to extend their income. Consumer debt is at an all-time high and American's need to know what they can do to get out of debt. Often, consumers are seeking the services of professional debt settlement companies to help regain control of their finances. However, prior to 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 making the decision get help with your debt related problems is to be an informed consumer. It is absolutely critical to do your research. Do not rush into things; this can cause more harm that good. Prior to signing on with any Debt Settlement company, make sure you ask the following questions and consider their responses:

* How much does the service cost? For example, many debt settlement companies request that you pay your first three to four months of payments to them and set aside nothing for debt settlement. You want to choose a company that allows you to beginning saving for settlement from the day the program starts. A company that does this will most likely have your best interest in mind.

* Does the Debt Settlement Company you are considering report to any of the three major credit bureaus about your enrollment in their program? Traditionally, debt settlement companies do not report to credit bureaus; however, I have heard of a few that do. Creditors will normally elect to report derogatory information on your credit report, but the debt settlement company you do business with should not.

* Does the company offer any type of service guarantee? If so, what is the guarantee? If a company can not get settlement on your debt, you should never have to pay a fee, or the fee should be fully refunded. Additionally, steer clear of any debt settlement company that promises a quick fix to your debt related problems or tells you that debt settlement will not have a negative effect on your credit. Upon enrolling in a debt settlement program, your credit score will probably get worse before it gets better. This is a minor price to pay for being given a substantial debt settlement and not having to file for bankruptcy! However, it is important to realize that if you want to maintain a "good credit rating", you have to pay you bills on time; anything else will cause your credit score will suffer.

* 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 should debt settlement not work out for you? For example, some debt settlement companies will offer a refund 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 back to you. Again, a company that does this will most likely have your best interest in mind.

* Does the debt settlement company you are considering belong to the local Chamber of Commerce? If so, is the Chamber an accredited member of the Chamber of Commerce of the Unites States? This type of affiliation will help ensure that the company is conducting business in a proper manner.

* Is the debt settlement company you are considering a member of the Better Business Bureau? If they do not advertise this, you can always inquire with the BBB first. The BBB is a great way to determine if the company has a list of prior complaints. Any company with more than a few complaints per year is a company that you do not want to do business with.

Alan Barnes IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com

---

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

How to Choose a Debt Settlement Company

As consumer debt continues to spiral out of control, debt... Read More

Debt Getting You Down? - Make a List!

Debt is not much fun and when faced with it,... Read More

5 Ways to Get Out of Debt

It has been said that everyday more and more people... Read More

Your Ticket Out of Debt Relief

If you are in debt over your head and wondering... Read More

Two Ways To Debt Relief

There are many debt relief programs out there both off... Read More

Is Debt Negotiation Bad?

Educating yourself about the ins and outs of debt negotiation... Read More

How to Deal with Bill Collectors

So you've screwed up. You're drowning in debt. Maybe the... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

5 Options Toward Debt Relief

If you are in debt, well over your head in... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

Hide That Car! Fighting the Repo Man

Vehicle repossession may appear justified in circumstances where a person... Read More

Tips To Take Control Of Debt Collection

Yes, debt collection tips can help. You may think you... Read More

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an... Read More

Debt Collectors; And what you can do to Get Them Out of your Life

FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More

Debt Problems? You Can Negotiate With Your Creditors

It is always possible to negotiate with creditors ? even... Read More

The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

In April 2005, Congress made sweeping changes in U.S. bankruptcy... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

Learn The 15 Debt Elimination Steps You Must Take Immediately!

What Everybody Needs To Know...Learn The Truth About Debt Elimination... Read More

Debt Settlement : What You Need To Know

Debt Settlement companies work with your creditors to help you... Read More

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we... Read More

The Human Side - Debt Stress

In all the technical discussion you hear about credit... Read More

Purchase Your Future Now While It Is Still Inexpensive

Leaving school, getting a new job, or even a raise... Read More

Debt Consolidation Versus Debt Negotiation

Debt consolidation versus debt negotiation are two options that are... Read More

Debt Free and Carefree

Are you still clearing a mountain of debt amassed last... Read More

Debt Elimination 1

If you have multiple debts, you may well be wishing... Read More

Debt Elimination

If you're reading this article right now I'm sure that... Read More

A History of Money and Banking Secrets That Banks Dont Want Published

A History of Money and TradeTo start with a history... Read More

New Bankruptcy Law ? Where?s the Consumer Protection?

On April 20, 2005, President Bush signed into law the... Read More