Your debt has spiraled out of control. There are different companies and organizations offering support and relief everywhere. But how do you know which one to choose? To help in your quest for debt relief, we’ve assembled a list of important factors to keep in mind during your decision-making process in which debt resolution company to work with.
1. Don’t Let the Nonprofit Status Influence You
It’s easy to assume that a consumer credit counseling company that boasts of its nonprofit status is more likely to be looking out for your best interests, rather than their own profits. In fact, even companies that are structured as nonprofit corporations are still in business to make money.
2. Negotiations with Creditors Can Be Done By the Debtors Themselves
Individuals can do many of the things that debt relief companies are entrusted with by contacting their creditors directly and negotiating alternative payment plans. While the option is open to anyone, people often feel too close to the problem or self-conscious about the negotiation process to do it confidently. Additionally, a trustworthy debt resolution company will be familiar with the ins and outs of the negotiation process and understand which negotiation points can be pushed more than others.
Using a reputable professional service means you will be kept up to date regarding your debtor rights throughout the process, and that saving and payments to creditors are organized appropriately to satisfy settlements.
3. Your Credit Score Is Affected
Some have speculated that entering into a debt resolution agreement will negatively impact your credit score. In most cases, your credit score will be affected when you enter into a debt relief agreement. Depending on the details of the agreement, your credit may be affected for 2 years, up to 6 or 7 years. Of course, this doesn’t mean you will be unable to make purchases or live your life the way you want like if you’d declared bankruptcy, but there will be an effect. Much of the time, the peace of mind from having debts paid off is well worth the temporary credit score issue.
4. Your Balances Will Be Reduced
The successful renegotiation of your debt relief plan will mean a reduction in your balances. In many cases, the savings resulting from these lower balances can be in the thousands of dollars.
5. Future Fees and Penalties are Eliminated
As part of the debt settlement process, your debt resolution company will eliminate future fees and penalties you may have incurred by choosing another method. When a debt is settled, the account is closed and balance is reduced to zero.
Armed with this information of what you can look out for and what you might expect, you will be in a better position to choose the best debt resolution company that will best suit your needs. Click here for a free quote to eliminate your debt.