As the economic crisis continues to force people into dire financial situations, more and more people are struggling to meet their monetary obligations nowadays. The debt continues to pile up as they borrow money to pay off the interest or arrange for the repayments for their previous borrowings, eventually leading them to bankruptcy. This can be a very stressful situation and in order to get out of this vicious circle, debt relief programs can be your best bet.
Companies that have a specialization in these debt relief programs are well-versed in dealing with various types of creditors, like mortgage companies, banks, credit card companies, et al. They can be your great rescuer as they interact with creditors to reduce the amount of money you owe to them (this can sometimes be the reduction of as huge as 70% of the total amount) and can even convince creditors to cut back on the interest rate on your previous borrowings, thereby assisting you in finding your way out of this debt-ridden situation.
Consolidation of the present debts, debt settlement, modification in re-payment schedules and debt negotiation are some of the common solutions that are suggested by debt relief companies. Though all of this sounds too positive at this time, the catch lies in finding the right debt relief company that is truly committed to offering an apt consumer debt solution and not dupe you further, making your situation even worse.
Warning: Do Not Fall In The Trap Of Non-Genuine Debt Management Companies
Given below are a few ways in which non-genuine debt management companies try to trick people:
- They provide an assurance of total payoffs or precise payments in 1-2 years. There are many situations when settlements and policies may change on the behalf of the creditor, like merger of banks or change in interest rates. So, be sure too brush off any such assurances as no one knows what future has in store.
- Affiliations with Chamber of Commerce or Dunn and Bradstreet are usually used by companies to vouch for their credibility. However, the truth is, to know the real credibility of a debt relief company, it should be included in Better Business Bureau (BBB) listing and maintain a good record.
- Some companies charge a flat commission from you according to the amount of your debt. It is better to be wary of such companies as no genuine companies do this. Reputed debt management companies charge a certain percentage of the amount they help you save, as their fee.
- Companies that advice to sign up for loans in order to consolidate your debts are sure to make you repay your complete debt and that too with the same interest rate at which you were paying it earlier, proving to be of no help, instead dupe you off their commission amount.
- Claiming that debt consolidation will not show on the credit report is another tactic used by non-genuine debt relief companies. In the end, this affects you a lot more than the usual debt settlement.
Having known the intricacies of the finance industry since years, our team took the challenge of reviewing several debt management companies that claim to get people out of their credit crunch. Working on it aggressively since the past two years, we present to you with reliable industry names that have the knowledge and resources to offer you necessary assistance in a dire financial situation.
For any of you who are stuck with a personal loan, credit card loan or any debt for a small business, these companies are sure to guide you towards a brighter side. Our recommendations are primary based on the following factors:
- Reputation of the company
- Our interaction with past clients and company staff
- Credentials of the company
- Written guarantee for estimated savings
- Work with most creditors, especially the ones that are not easy to deal with, like Citibank
- Membership with BBB for a minimum of 5 years
- Assistance in maintaining your credit standing