How to choose a debt settlement program?How to choose a debt settlement program?
Debt settlement can help you negotiate with your creditors. It can allow you to lower your overall debt and consequently your monthly payments. There a few things you have to know before choosing a good debt settlement program.
First and foremost, remember that a program will last a year or more. Make sure you're ready to enrol in such a long program.
Another important thing to remember is that only unsecured debts can be negotiated in a debt settlement program. An example of unsecured debt is credit card debts or medical bills. If a company tells you that it can help you negotiate a debt secured by your home for example they are probably lying. This is a technique debt relief scammers are using. They are telling you they can help you when they cannot to persuade you to pay them thousands of dollars.
As a matter of fact, some debt settlement companies charge an important upfront payment fee. Beware, of these companies. A lot of them are not legitimate. Scammers are taking advantage of the fact that when you're in debt you can't think clearly. They will try to get the as money as possible from their victims. Don't fall into that trap. Search for companies that will make you pay for they service only after the settlement is made. Always take your time to decide what debt settlement program you will choose.
Remember that there are a lot of scammers in this field and that they're really smart. If you can talk with your family or close friends about the decision you have to make. Give them details about the offer you received, ask them if they know the company that contacted you. They will help you avoid the too good to be true offers debt settlement scammers are making. When you're in a difficult financial situation it's really difficult to not be tempted by this kind of offers. You want to be debt free as fast as possible but if you take the time to think your situation can be worse if you pay thousands of dollars for a bad service.
Another tip is to check what amount they charge in total. Beware if they're asking you a too big percentage of the balance. This percentage should not be higher than 20%. Also make sure that there are talking of the percentage by which the debt is reduced and not the percentage of your debt.