How to Find a Reputable Debt Settlement Company
Research from the Nilson Group says that households with at least one credit card had more than $10,000 in credit-card debt at the end of 2008. That figure has only gone up as the nation struggles through a weak economy. With the national unemployment rate rising past 10 percent as 2010 began, U.S. residents are relying more on their credit cards to pay their normal living expenses. The problem is, these debts can add up, what with the average interest rate on consumer credit cards standing at more than 16 percent in December of 2009. For many consumers who are overwhelmed with credit-card debt, the best solution might be to work with a reputable debt settlement company.
Such a company will negotiate with your creditors to reduce the amount of money you owe to them. The best companies in this business will be able to reduce your debt dramatically, significantly easing the financial burden that you face. This usually works best when consumers can offer a lump sum payment to their creditors, though skilled debt companies can still provide financial relief even if you can only afford smaller monthly payments.
Before settling their debt, though, consumers need to research the company with which they plan to work. As in any industry, the business of settling debts does have its share of unethical companies. These companies will take consumers’ money and then do little to help them relieve their debt. Or, they will charge them excessively high interest rates and fees. Fortunately, the majority of companies in the debt-settling business operate in an honest and fair manner. It is up to consumers to do their homework first to make sure that they are working with one of these reputable companies. With the power of the Internet, doing this research is neither difficult nor time-consuming.
First, consumers should run an online news search for the name of the debt settlement company they would like to work with. This will turn up any headlines that the company made. If this search turns up nothing, consumers should then check with their local office of the Better Business Bureau. This agency will list any consumer complaints filed against the company. Finally, consumers should always ask a company they are considering to list their rates, terms and late-payment penalties on paper. This way, there will be no unpleasant surprises as the work of paying down debt proceeds.
By: Hector Milla
Tags: 10 Percent, Amount Of Money, Best Solution, Consumer Credit Cards, Credit Card Debt, Creditors, Debt Settlement, Debts, Financial Burden, High Interest Rates, Households, Interest Rate, Living Expenses, Lump Sum Payment, National Unemployment Rate, News Search, Nilson, Reputable Companies, Settlement Company, Unethical Companies