by First Rate Debt Solutions
2. November 2009 11:02
I’ve seen several articles recently (most likely sponsored by the big banks) really trashing the debt settlement industry and debt settlement companies in general saying that they don’t work which is absolutely not true.
Just like in any industry, there are good companies and bad ones. Not all companies are the same and who you choose to work with will make a big difference in how successful you will be.
Debt settlement works and it works well for the right person. Each situation is unique and debt settlement is not a one-size-fits-all solution. It must be the right solution for you and you must be committed to making it work.
Many people want to look at debt settlement as a “magic pill” or “get out of debt free” card. It’s not like that. It’s a serious program that takes 2-3 years to complete that will save on average 50-60% of the debt owed. But it doesn’t happen overnight and it’s not without its drawbacks.
A legitimate company will explain the program thoroughly along with the other options available to make sure that it is the right choice for you. They will also explain exactly what to expect and what you need to do to be successful. If you can’t commit to doing what it takes then it’s not right for you. Here are a few tips to make sure that you are successful if you choose the debt settlement route.
- Do your homework and find a legitimate company that follows all state and federal guidelines and is a member of one of the professional trade organizations like IAPDA, TASC, or USOBA. Check them out with the secretary of state to make sure that they are a legitimate and licensed business.
- Be completely candid and honest with the settlement company about exactly how much you owe and what you can realistically afford. They are there to structure a program that works for you and need to know the specifics to do that.
- Comply with the terms of the contract and know what they are. Read the contract before you sign it and ask questions if you have any.
- Make your payments each month. You can’t get out of debt if you aren’t fully committed.
- Don’t talk directly to your creditors or interfere with the negotiators efforts. The creditors are professionals and know how to intimidate you and coerce you. Professional negotiators know how to “talk” the talk and that’s what you are paying for.
- Be Realistic. Remember the amount of time you signed up for the program. That’s how long it takes to get out of debt. Don’t sign up for 36 months and then get mad when you aren’t out of debt in four months. Be patient.
- Start saving and cutting back on any unnecessary expenses. You are trying to get out of debt and the faster you save money, the sooner it will happen.
Being in debt is a very stressful situation and one that requires immediate attention before it gets even worse. Finding the right company with trained, caring financial consultants is the first step to navigating a path to financial freedom. Debt settlement, done properly by a reputable company, WORKS. It will get you out of debt much faster than you could just paying your bills normally and you will pay back far less. You'll also have a chance to 'start over' without the stigma of a bankruptcy.
Subscribe