Debt relief companies can help you get out from under your credit card or other unsecured loan debt. However, the market is full of companies that offer debt relief services who aren’t fully licensed or don’t have a good track record for helping customers. For this reason, it’s important to ask many questions before choosing an agency to negotiate with your creditors on your behalf. Below are some of the most important questions you should ask before working with any debt relief company.
Debt relief companies can be expensive, but there are some questions to ask when considering hiring one.
One of the first things you should ask is how long the company has been in business. If it’s less than five years old or if it’s a franchise (a company that licenses its name and system), stay away–these firms tend not to provide high-quality services or may not have enough experience. The second thing to ask is whether the company provides personal service or has an automated system. This is important, as an automated system may not provide the same high level of service as a personal one, so look for a company that offers direct contact with an advisor and client support, like American Credit Card Solutions (ACCS).
What certifications do you have?
Asking about certifications is always a good idea. You want to ensure that the debt relief company you’re considering has been accredited by the Better Business Bureau and certified by the International Association of Professional Debt Arbitrators (IAPDA).
If the BBB accredits a company, it means that the company has met certain standards of business conduct. It will also mean a good industry reputation and proven reliability. While some debt relief companies aren’t accredited by the BBB but still provide excellent service, it’s still an important factor to consider.
The only way to know if a debt relief company is actually certified by the IAPDA is by checking its qualifications. The IAPDA requires members to earn certification in order to provide debt relief assistance. This means that they’ve passed an extensive test on the industry’s best practices and ethics.
Do you charge any upfront or monthly fees?
It’s important to understand all fees associated with a debt relief program before you commit. You should be aware that some debt relief companies charge an upfront fee and/or monthly fees. The upfront fee is the amount you pay to get started with the company, and the monthly fee is how much they charge you every month after that. The fees are usually a percentage of your debt, but they can also be a fixed amount per month (for example, $50).
>ACCS stands by the rules and regulations of the Federal Trade Commission (FTC). When you enroll in our program, we do not charge any upfront fees. In fact, you won’t be charged anything from us until we achieve a settlement for you. We also provide our initial consultation at no cost and no obligation to you.
What percentage do you charge to settle my debt?
You may be surprised to learn that the percentage a debt relief company charges to settle your debts vary but are typically around 25%. The amount depends on the type of debt, state you reside in and individual circumstances.
The percentage charged by a debt relief company represents their cost of doing business. This includes things like overhead and salaries for employees, as well as training materials and technology needed to manage your case.
How long will it take to settle my debts?
The length of time it takes to settle your debts depends on the amount owed, the creditor and your budget. If you are able to pay off one creditor in full, they will usually take less than a year. However, if you have multiple creditors with varying amounts owed, settling all of your debts could take a few years.
The best way to get a sense of how long it will take is to speak with the debt relief company and give them all of the information about your debts. They will be able to provide you an estimate, and let you know if they think it will be possible for you to settle all of your debts within a few months or years.
Will my credit score be affected by debt negotiation or settlement?
When you’re talking to a debt relief company about your debts, it’s important to know that the process of debt settlement may negatively affect your credit score. However, the only way to start to rebuild your credit score is to pay off all of your debts first. The longer you wait, the more money you will have to pay—and the longer it will take for you to get out from under the burden of debt.
A debt relief company should be upfront with you about this negative aspect of debt settlement. The best debt relief companies will be honest about your credit score, and how it can be affected by the process of negotiating or settling your debts. You should also contact the three major credit reporting agencies—Equifax, Experian and TransUnion—to obtain your credit report so you know where you are starting from.
Are you licensed to work in my state?
As a general rule, if you are considering hiring a debt relief company to help you with your debts, it is always wise to check their credentials. If they are not licensed in your state, there is a good chance that they will be unable to legally negotiate on your behalf with creditors and other third parties.
While some states do not require debt relief companies to be licensed, it is always a good idea to check the credentials of any company you are considering hiring. You can usually find this information on their website or marketing materials.
In conclusion, it’s important to remember that there are many debt relief companies out there with different services and offerings. The key is finding one that best fits your needs and budget. We hope these questions have been helpful in guiding you towards finding a company that can assist in eliminating your troublesome debts.