When people first learn that I work for a debt settlement company, I always get the same question, "Can I really pay only a percentage of my debt and be done with it"?

The answer is, YES!

But, the answer is not always that simple. If you have read any of my previous blog posts, you know I am an advocate for informed consumers.

In light of the current economic situation, the credit and debt industry is exploding. There is no federal regulation on the debt settlement industry, so basically any one can put an ad on T.V., charge a fee and make a lot of false promises. If your considering this option, be very careful, you have to be a very smart consumer.

There are programs that are successful but keep this in mind, it is not always as easy as the commercials claim. Think of it this way, you watch a diet commercial where the model lost 70+ pounds and claims, "If I can do it, anyone can do it." As consumers we are sold on quick fixes, but if it sounds too good to be true, think it through. As anyone knows who has ever tried to lose a significant amount of weight, there is not quick fix.  And just like with weight loss, there is no quick fix with debt elimination.

Negotiating to eliminate debt is a skill that is learned over years of experience working in the credit and debt industry. Getting in debt didn't happen over night, getting out of debt won't either.

The question is, can you or should you do it alone?

How many clients have that have settled at least one debt?

In a recession saving money is hard to do. But, how many people are at least on the track to financial freedom can give you an indicator as to whether or not you will be on the track to financial freedom one day.

 

How much debt is settled per month, per year?

If your goal is to get out of debt, you want to be sure you have hired a company that has proven results.

When did the first client sign up?

This is a benchmark question to evaluate how long the company has truly been in business.

What is the individual’s personal experience in the debt settlement industry?

It’s natural for a person to be biased and think their company is the best, but are they qualified to help you make that decision.

How many clients does the company have?

When researching and comparing companies, make sure you are comparing apples to apples. A company that has serviced only a few hundred clients cannot reasonably be compared with a company that has serviced thousands of clients.

Have the owners of the company ever owned another debt settlement company and if so, why did they close it?

Some companies in the debt settlement industry are forced out of business in one state and allowed to re-open in a new state. Of course this is not always the reason why one company would close and re-open but you won't get the answer until you ask the question!

How long has the company been in business?

Granted the settlement industry is relatively new, compared to some industries, but experience is critical. When it involves your money and your family’s livelihood you want to know you have trusted someone who has the experience to get the job done.

In recent months, several hundred companies, offering debt settlement services have opened for business. As a consumer it can hard to tell serious qualified companies apart from the ones in it for a quick buck.

These topics are offered to provide you with guidance on your search for a debt settlement company. There is not one single magic question that will help you make the right decision, but if you ask some of these questions, you may learn enough information to help you narrow down the selection to one company you want to work with.

As consumers, we make decisions every day about which company we will give our business.

Without realizing it, you are mentally comparing and analyzing companies each and every time you chose one over another. Let’s think about this concept in basic terms. Whenever you need to make a purchase of any size, gas for your car, dinner out a restaurant, or major appliances, how do you decide where to shop? Some common considerations are convenience, experience, service, reputation, referrals or customer reviews. These common considerations also apply to debt settlement companies!

Opening a debt settlement company is fairly easy to do. This means that anyone, regardless of experience or background can open a debt settlement company. So, it’s in your best interest to choose wisely and don’t let your emotions make the decision for you. Do your research and find a company that you are comfortable with.