Debt Settlement Companies, 4 MUST KNOW FACTS!

Many people right now are in extremely compromising financial positions due to the ailing economy. The problems people are facing range from losing their homes to losing their jobs and many more. However one of the worst issues that almost everyone is dealing with right now is having too much bad credit card debt. In the shape the economy is in and where it appears to be going it would be very advisable for consumers to get out of debt as quickly as they can.

One of the only viable options for most people right now is a debt settlement program. And most debt settlement companies are able to do a very good job for people who have found themselves in this bad financial spot. However there are a few things that you must know about debt settlement companies before enrolling to ensure you are signing up with a good company.

1. This process should take no more than 3 years to complete. So any company that attempts to put you on for 4 years or more is not being honest and just wants to collect your fees. To maximize the amount of savings you must get it done as quickly as possible.

2. You have to fall into default on the accounts in order to get the creditors to be willing to negotiate a settlement; there is no way of avoiding this. With this being said many companies will not tell potential clients this just to get them signed up. Make sure a company you speak with tells you all the benefits and pitfalls of debt settlement.

3. So understanding that your accounts will be defaulted you must also understand that there will be collection calls from debt collectors. Now debt settlement companies will be able to slow down these calls, however no company can guarantee that they will be able to stop them completely. So anyone who tells you they can may not be totally honest with you and you should probably just avoid.

4. Last but not least make sure to check the BBB (Better Business Bureau) any honest and reputable debt settlement company will be an accredited member with little to no complaints. And companies that have complaints should have them being resolved to the clients liking.

With today’s economy debt settlement may well be the best option for the majority of American consumers in debt. Let’s face it the advantages are just too great, especially for a time like this. A great number of people find themselves saving over 50% of what they owe and becoming debt free within a few short years.

The advantage in negotiating right now is leaning heavily towards the consumer. The big credit card banks are feeling the negative effects of this recession the most and cannot afford to leave any money on the table. So therefore they have been negotiating at record lows, thus saving a tremendous amount of money for the consumer.