If you're considering using debt settlement to help you pay off your credit cards, here are 5 tips to help you decide on a company to help you.
Keep in mind that hiring a debt settlement company is no different than hiring any business to perform a service for you - so make sure you find the one that fits your needs the best. Not all debt settlement companies are the same. Like with any industry, there are good ones, and there are the rest.
Unfortunately, when it comes to settling credit card debts, you often hear more stories about people who complain than those who receive good service (and there are many).
How do you determine which settlement company will offer you the best service?
1) Shop around
When hiring a settlement company, you should contact at least 2-3 different businesses and compare the services and terms they offer. Not only will you find the best company to represent you, but you will learn a lot about how debt settlement works, and how it can help you.
2) Check with the BBB
While not everyone with a complaint contacts the Better Business Bureau (so a clean record may be misleading) if there are several unresolved complaints, that is a "red flag" to find out why there are unhappy customers. If the complaints have been resolved, that is a good sign that the debt settlement company offers good customer service. You can search for company records online at www.BBB.org.
3) Check references
While debt settlement is a confidential process, and therefore you may not find many companies willing to give out names of happy customers, it is worth asking. Talking to a former customer will tell you more about a company than any brochure or website.
4) Get all the details in writing first
This is an absolute MUST - you should never agree to anything, sign any paperwork, or send in any money until you get all the terms and conditions in writing. A written contract will help you understand what service you should receive, how much it will cost you, and protect you if an issue comes up.
5) Ask lots of questions
If you have any questions (and the more settlement companies you talk to, the more questions you will have) make sure to ask them - and get the answers you want. If a company is not willing to take the time to answer your questions now, how will they respond to you once you become a client and your money is at stake?
Bottom line, it is your responsibility to "do your homework" and research the best company to help you settle your debts.
If you take the time and effort to find the company that will fit your needs the best - just like you would when hiring any professional - you will greatly reduce the chances of a major problem occurring.
Settling your credit card debt is a big decision for anyone to make, so don't make the decision lightly!
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Frequently Asked Questions
In too deep
By: sonomagal | 11-09-2008
I am in over my head with what we owe in taxes, I owe for federal year 2005 $96,933.69 & for year 2007 $11,135.20. I have no equity in my home & have about $28,000 I can access. I have no idea where to start & want to let the irs know I am serious about getting this taken care of.
Income tax on stock buyout
By: fidelio | 11-09-2008
My company was recently acquired by another company and all of my shares purchased through the employee stock purchase plan were purchased at fixed price by the acquiring company in cash at merger closing. I recently received a check of the proceeds and I noticed that the amount was less than what I had contributed. My company did not withhold federal, state or local income taxes at the time of sale. My question is what do I need to do to report this income when I file my taxes next year?
How can i repair my credit?
By: shelov | 11-09-2008
i was the victim o fid theft before so much light was drawn to by a member of my family. Not knowing about it until the letter started to roll in i discovered that i have a ton of chrged off items and at least 1 judgement against me. How can i fix this problem? I do not want to persue legal action agains the thief, it will cause even more damage. what steps can i take to restore my credit? i am without an automobile, a home and i've recently been turned down for a job.
Desparately seeking a solution,
S. G. Williams
NY
Refinance rates
By: Paige | 11-09-2008
Should I wait a little longer to lock in a rate for a 30yr. fixed. It has been going down.
Rent or sell inherited house?
By: Liddy | 11-09-2008
Hi,
I am trying to decide if I should rent out or sell a recently inherited house.
The value of the property is about 370k which is my cost basis. For depreciation purposes the value of the building alone is about 250k. I could rent the house out for 1,550.00 per month. Monthly expenses will run about 675.00 ands all cash profit would be spent as income. If I sold the house I would invest about 350k and draw 4% off as income.
I am in my 40's and my family income is about 75k. We currently own our own home and 1 rental property. Our income should be rising to over 100k over the next 5 years.
I would like to look at three scenarios to decide if it is financially smarter to keep or sell the home. The 3 scenarios would be: 1) Keep the house, rent it (spending the profits) out and sell in 20 years. 2) Rent out the house and leave it to my children when I pass away (let's say in 20 years - for comparison). 3) Sell and invest the money over 20 years - spending 4% as income.
Obtaining a mortgage after bankruptcy
By: mark | 10-09-2008
I had to declare bankruptcy 1 year ago due to a complete disability and lost our home, prior to this we had a credit rating of 780, I now want to purchase a home, what or how do I go about qualify. During the bankruptcy I maintained all car loans, utilities and am now renting with no isssues. I also have qualified for and recieve SS.
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