Debt Settlement Common Questions & Answers

If you are at an especially high risk of bankruptcy and feel you have no other options, you can expect relief from a debt settlement, but there are a number of questions you should be asking you and your family.

What Are The Differences Between Debt Settlement & CCC?

A CCC or credit card collections department are designed not to negotiate the debt with the creditor, but rather offer customers a loan to payoff the amount of their debt. This can often be easier for people to handle because the concept is much simpler, more transparent, and you often only pay for the services received, whereas some debt settlement companies can charge huge fees and never deliver any services.

For a debt settlement company, they will typically produce a financial assessment which looks at your current income, current costs, and determine an amount you are able to pay to the creditors to stay solvent. Based on this maximum payment amount, they will negotiate and barter with the credit card companies to reduce or mitigate as much of your debt as possible.

Debt settlement companies can reduce or eliminate your debt, making them more than simply a loan provider. This reduction in debt can help to get you out of debt faster, but it can often come at a larger upfront cost than receiving a loan from a CCC.

How Can I Checkout The History Of A Debt Settlement Company?

When deciding which company to work with to negotiate your unsecured debt, you want to make sure you are dealing with a reputable company that is going to be true to their word and not try to rip you off.

One of the first steps you can take is to look them up in the TASC (The Association of Settlement Companies) this is a trade organization that lobbies on behalf of debt settlement companies and can be a great resource to indicate whether your debt settlement company has a strong track record and can be relied upon to provide you with quality services.

You will then want to check out the BBB or Better Business Bureau and make sure the company has not been reported for any fraud and that they are registered and affiliated as being an upstanding business for serving clients. Additionally, running a check with the Attorney General’s office will be another place to check to ensure there have been no complaints.

Another great unofficial resource is the Ripoff Report that is run by consumers for consumers and it acts as a watchdog for any consumer scam on the Internet or anywhere. Be sure to search the name of the debt settlement company on their site, and if you see any complaint, you may be wise to stay away.

Finding A Debt Settlement

We are a resource that is designed to help you in your goal to secure your financial future, and if we can help you with a debt settlement we are happy to provide you with some of the firms we have partnered with. Please use any of the contact forms on the site or click here to get a free evaluation.