With any service industry, it’s important to choose a company you feel good about – one that makes you feel comfortable and valued, and one that acts with your best interests in mind. This is especially true with debt settlement agencies, given the sensitive nature of their relationship with consumers – the intimacy of personal finance issues.
Debt settlement isn’t federally regulated but states do have laws and regulations pertaining to the industry. Without centralized guidelines for ethics, best practices and transparency, it’s impossible to prevent the isolated negative consumer experiences. However, to broadly paint the entire industry as unethical is both untrue and unfair – in reality, it’s a small minority of companies responsible for the unjust stereotype.
The good news is, spotting the right debt settlement agency to help relieve your financial burden is relatively simple. There are things consumers can do to protect themselves and their financial futures, just by knowing what red flags to look for and what questions to ask.
First, ask if the debt settlement company is a member of a trusted trade organization. USOBA and TASC both require member companies to adhere to strict standards designed with the consumer’s best interests in mind. These organizations are truly advocating for you with creditors, and will provide you with the best service available.
Next, when talking with the company, make sure they’re not pressuring you to make a quick decision or sign papers you haven’t read thoroughly. The best debt settlement companies understand the financial pressures you’re under and want you to make the decision that is best for you and your family. If you ever feel uncomfortable, do not move forward.
Finally, choose a debt settlement company that is responsive and respectful of your time. If you have a question or concern, they should return your phone calls and emails in a timely manner, acting in a polite and professional manner.
I have regretably gotten myself into a large amount of debt and have to make some improvements in my personal condition. I would like to declare bankruptcy. I just am not sure about how that really works. Does anyone have any further knowledge?
Sure, if before deciding on either debt settlement or debt management you will always want to include a conversation with a bankruptcy attorney. For many bankruptcy is by far the best option available, and enrolling in a debt settlement or management program would only be a very expensive diversion.
In a nutshell, your income, both current and projected will ultimately determine the best option for you.
One thing is for sure though, avoid any debt settlement program that involves paying an advance fee, only pay for the service at the time a debt is settled, as of 10/27/2010 that’s the law anyway.
Excelelnt advice, I believe not rushing into any decision is best. Shop around, make sure that the debt settlement company you join meets the new standards under the new federal laws that govern debt settlement companies.