Things to Consider Before Hiring a Debt Relief Company

The best way around any debt is to pay it. However, that’s easier said than done, especially if you’re in a deep financial crisis. If this is your current situation, you can always hire a debt relief company to help you out. Note that not every company is the same; that’s why you should select the company right. So, what are some things to consider before hiring a debt relief company?

Before you hire a debt settlement company, you need to ask questions, and here are the most important of them.

How Long Have You Been in Business?

The amount of time a debt relief company has been in business is a crucial indicator of whether it is genuine or a fraud. It would be best to stay away from a company that has been in business for less than two years since they probably don’t have sufficient expertise. This is not to say a young company can’t be successful, but the more experience a firm has the more likely you are to see the desired result.

What Fees do You Charge?

A legitimate debt settlement company will not charge any upfront fees on the service. The fees charged for the service should entirely depend on your debt settlement, and they ought to be a percentage of the debt you register. These fees are usually a flat rate and typically range from 15% to 25% of the amount of debt you register for settlement. In fact, it’s illegal, by federal law, for a debt relief company to bill you for its services before settling debts on your behalf.

Am I an Ideal Candidate for Debt Settlement?

The debt settlement company may look at whether you find it hard to make debt payments and owe $10,000 or more in unsecured debt to qualify you as a candidate. They’ll also check to ensure you can make the required monthly payments per the settlement plan you agree on. Inquiring about your qualification as a candidate for debt relief lets you in on any other suitable options (if any) you can explore towards paying your debt. Note that the debt relief program can affect your credit score and credit standing, so exploring other options may be worthwhile. You can find more detailed information about this at https://www.freedomdebtrelief.com.

Are You a Member of the AFCC and Certified by the BBB? 

Before hiring a debt relief company, ask if it’s part of the American Fair Credit Council (AFCC), or a similar accreditation group. The AFCC is a debt settlement industry watchdog. For any debt relief company to get their membership with the AFCC, they need to take a pledge to treat their customers with fairness, honesty, and transparency. You should also check whether the debt relief company has at least an A rating with the Better Business Bureau (BBB). 

Will All the Creditors I Owe Money Negotiate With You?

As you’re interviewing debt settlement companies, ask if all the creditors you owe money will come to the negotiation table. Remember that there’s no ideal situation where all the creditors will be open for negotiations since some may decline to negotiate. Here, you can assess the honesty of a company. No company can (or should) guarantee to settle all your debts with all your creditors.

Will You Stop Creditors From Calling Me?

The debt relief process requires you to cease making payments to the creditors. Some may choose to harass you with calls as they attempt to recover the debt you owe. As you select a debt relief company, ask if they’ll do anything to stop the harassment calls from your creditors. The company should tell you whether it will contact the creditors, inform them of your arrangement, and redirect the calls.

Don’t forget to check out the reviews from previous clients in your quest for the perfect debt settlement company. Reviews are among the top things to consider before hiring a debt relief company.

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