How To Choose A Debt Relief Company

In a recent report presented by the Federal bank of New York, it was clearly stated that the U.S. household debt has reached at an all time high. Even after adjusting the amount for inflation, still the current household debt exceeds previous records by miles. It’s only obvious that considering the present situation, the market will see new debt relief companies emerge out of nowhere. A lot of these companies operate under fake registrations and charge their customers with huge upfront fee. The Internal Revenue Department has repeatedly tried to regulate such debt relief companies but to no avail. The primary target of such companies is the citizens who are facing financial hardships because of huge debts. These companies lure their customers with tall claims and false promises. A lot of people have been duped by such scandalous companies. In this article we will discuss how to choose a good debt relief company.
  • Check for affiliation:

Before you trust any particular debt relief company, never forget to check whether it is affiliated by some concerned authority or not. Currently there are two affiliating authorities in the United States of America. The first is United States Organizations for Bankruptcy Alternative (USOBA) and the second one is The Association of Settlement Companies (TASC). Such affiliations reduce the risk and increase consumer confidence because you can be sure that any affiliated company has been independently scrutinized and audited by an independent third party organization. All major debt relief companies that want to do legal business have these affiliations. Any debt relief company that wants to do serious business will itself inform its customers about the affiliations that it has. You will also find the logos of the affiliating authorities on the advertisements of the affiliated debt relief companies. Some people ask that which of these two affiliations is better than the other. The answer is that both affiliating authorities hold equal credits and their affiliations are equally trustable. As long as the debt relief company that you are dealing with is affiliated by one of the two affiliating authorities, be assured that you will get a fair deal. 
  • Evaluate the associated costs:

Once you have checked for the affiliations, see if the costs associated with the debt renegotiation or settlement is justifiable or not. Many people ignore the cost factor and sign up for the services of the debt relief company, this only escalates their financial hardships further and drags them deeper in to the well of bankruptcy. Grab your calculator, get on phone with the customer care executive and make sure that you can afford the monthly payments that the company is demanding in exchange for its services.
  • Check for the expertise of the debt negotiators:

It is very important to check the credentials of the debt negotiators who are going to renegotiate the debt on your behalf. You can get this information from the customer care executive of the debt settlement company. You should prefer a company that employs IAPDA certified debt negotiators. Any debt negotiator that has been certified by IAPDA will have deep and expert knowledge of the laws governing the debt settlement process.

Paul Ritz is an associate at National Debt Relief. Consumers can take advantage of a free debt consolidation session to discover their options for debt relief with no obligation.

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