4 Questions to Ask Before Signing Up a Debt Settlement ProgramFinding a reliable debt settlement company is the most important thing when you want to get rid of debt. By asking these four simple questions, you can advoid the rip-offs and another headache on top of your debt problems.
Q1: Do you have a money back guarantee if I change my mind?A reliable debt company normally provides a certain days so that you can make sure it is the right option. Never accept anything less than 30 days. Never rush into signing up a debt program. Q2: How is the fee charged?Many debt service companies advertise themselves as non-profit. In fact, most of them are not non-profit organizations. They will charge you an intial administration fee to set up account and charge you a monthly service fee. You need to take time to understand the amount of fee charged. Q3: How is your regular payment paid to the creditors?It is a critical question to ask when you are comparing the most suitable debt service company. A debt service company pays off your debts from a trust account. When you pay your monthly payment to them, the company isn't necessarily making monthly payments to the creditors. They negotiate your debts with your creditors. Then, they wil make a lump sum settlement with your creditors. It looks okay in theory. However, it could take a long period for your debt service company to settle with your crediotrs. During their negotiation, your debts including late fees and interest, are still growing. So you need to make sure how long it takes the company to make arrangement with your creditors. If possible, put these conditions in writing and ask for evidence that shows your debts have been paid in full to the creditors
Q4:How is the debt settlement company paid?A commission based company has incentives that are not always in your best interest. Find a company that pays their representatives to answer questions.
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