consumer debt relief

February 9th, 2010

What are debt management firms? These are firms that run certain plans to help one avoid bankruptcy and eliminate their debts through a process of settlement, also known as negotiation. In today s world, where credit cards are a bane and families and individuals manage their expenses through plastic money in the face of recession and murky fiscal waters, high bills and higher unemployment, credit cards, whilst having the advantage of buying now and paying later, are the scourge of modern society often rendering individuals unable to repay their debts as credit runs out. However, bankruptcy is not the best solution in this situation. When a credit card company is forced to write off your debt as a loss or charge-off, they follow it up with an inevitably unpleasant visit from the Collector and your credit ratings fall to an extent where it is impossible for you to secure loans in times of future need. The best alternative to this plight is to enter a process of settlement, and the following pointers help you with advice as to the factors to consider before you opt for a settlement program.

The first step to locate a settlement program which is conducive to settlement of your debts is carried out in the privacy of your place of stay and the moment to act is right now. As you log into the internet- yes, the process is as simple as that- you are greeted with an array of debt management firms-small, middling, large. The following tips will help you decide on the legitimate firm and right program to help settle your debts.

- Make sure the firm has a large number of trained and skilled professionals who are equipped with the acumen to negotiate with your creditors on your behalf and settle your debts.

- Make sure the firm is established and has been around for several years with a reputation in effective settlement procedures.

- Check with the Better Business Bureau or equivalent body for blemishes in the firms records. If these show up, find yourself another firm.

- Check consumer reactions and testimonials towards professional interaction with the firm. Make sure they are positive.

- Check forums to gauge the public and experts opinion on the firm. Again, make sure these are positive.

- Run a search on the firm, keying in the words ’scam’ and ‘review’ with the firms name. The absence of any black mark is an indication you can go.

- Make sure the firm is part of a debt relief network. These normally accredit only the most credible of establishments and their services are usually free.

- Check the fee structure of the firm. Settle for a firm with substantial fees rather than with minimal charges- this may be a sure gateway to scam and may indicate equivalent services.

Debt management firms may be effectively gauged for their legitimacy and effectiveness if the above-mentioned pointers are followed.

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