5 Steps When Choosing A Debt Program

After much discussion and financial stress, you’ve decided that it’s time to get some help getting out of debt. You are taking that first step towards financial freedom by realizing that you just can’t do it alone, and someone needs to give you a helping hand. So, now what? Where do you turn? How do you even begin to search for a reputable company that will help you out of debt without emptying your bank account and wallet.

The most important thing that you can do when beginning your debt settlement research is to be informed. Do your homework! I’ve written many, many articles on the debt settlement industry, and I can’t stress enough how crucial it is that you check out your company before you hire them. Remember, you’re hiring them. It’s not the other way around.

1. Two websites that I would recommend checking out when making your debt settlement decision are the United States Organizations for Bankruptcy Alternatives (USOBA), and the American Coalition of Companies Organized to Reduce Debt (ACCORD). These two organizations have proven track records and allow only reliable and credible debt settlement companies to enroll.
   
   
   
   1. USOBA, the older of the two organizations dedicated to equally protecting both the consumer and the industry, and ACCORD have strict guidelines for enrollment. These guidelines include complete transparency when negotiating with consumers, avoiding the urge to make promises to consumers, and being completely realistic when estimating expected time until settlement. If the debt settlement company you’re investigating is not a member of either one of these organizations, it might be best to continue your search.
   
   
   2. The most important factor regarding membership with USOBA or ACCORD is that the debt company must be transparent. This means that they cannot make a promise about what your settlement balance will be and they cannot promise a time frame. In this industry, there is so much negotiation that needs to be done it is nearly impossible to promise exact settlements and time. If the company you’re talking to promises to save you 50% on your balance, run for the hills.
   
   
   3. Is the debt settlement company asking you the right questions? Does this debt company adequately pre-screen its potential clients before enrolling them? One of the most overlooked steps in the process is the qualification of potential clients. Many times a debt settlement company will quickly qualify, get you to sign the contract as they make the big promises, and then realize that they cannot help you after you have gone through the process. It can be the most heartbreaking thing to have to go through, because in many cases you won’t find out until you’ve made many payments.
   
   
   4. Ask what the charges are, and exactly where your money is going. A fraudulent debt company will give you some small percentages and tell you again and again that they will get you out of debt no matter what. If they charge large upfront fees for initiating the program, run for the hills. The FTC is beginning to consider demolishing all upfront fees for debt settlement services, so if your company is still charging you might want to consider looking for a company that does not.
   
   
   5. Are you comfortable with their customer service agents? In most cases, you will be assigned a debt negotiator and/or customer service agent. This person will be your go-to-guy, and you’ll probably talk to them as much as you talk to your husband or wife. Be sure that you are completely comfortable with this person, and that your gut feeling tells you to trust them. If they’re supportive, informative, blunt, and experienced, then you’ve got the right person. If they are aloof and simply tell you what you want to hear, as much as you want to hear the perfect answers, it will not help you in the long run.
      
      
      
      1. How often will they contact you? Will this debt company not only help you to get out of debt, but coach and counsel you on your spending habits. The best debt settlement companies will do more than just negotiate your debt; they will attempt to help you change your spending habits.
      
      
      2. A huge red flag to be aware of, which should be common sense, is if the debt settlement company enrolls you without a contract. You must sign a contract! That contract must lay out exactly what your enrollment entails.
      
      
      
      
   
   
   
   

Finding a debt settlement company that’s reliable and accredited is easier than you might think. Sure, there are hundreds out there who just want to take your money, but there still are the good guys who only want to help you get out of debt. I can assure you that there are still those negotiators and services out there that genuinely enjoy getting that final phone call from their client, that final phone call where the client is nearly in tears from happiness because they received their settlement letter. It just takes a little work to find those debt services. But it’s worth it in the end.