5 things to check before you hire a debt relief company.
I am currently 39,000 in debt and is active collection with a third parties companies, who are very persistent and harassing. I just want to settle with them, but I am not certain what to do. Was considering a law group until i read information on them being not reputable in their practices. Do you recommend any particular debt consolidation company?
What to do in considering debt settlement help from a trustworthy company?
—Ida
Short answer
Before you hire anyone, decide whether settling is even the right option for you right now. Then run any debt consolidation company through these five checks, because there is no shortage of bad actors in that industry.
Key points on this page
- Has the company been around long enough to be good at this and to have built a reputation with its customers
- Is it listed with the Better Business Bureau, how many complaints are there, and were those complaints closed or resolved
- What do the online review sites say, and are there many bad experiences reported independently across several different sites
- How informative is the representative you speak with, because these companies tend to downplay the credit damage and the fact that you can still be sued after hiring them
- What are the fees and when are they paid, because higher fees stretch out how long the program takes to finish
- Since you are already dealing with debt collectors your accounts are late enough to settle, so start by deciding the order you will settle them in
Dealing with debt collectors, especially ones who are persistent in harassing and who may even use questionable tactics to get you to pay something, can be tough to manage. I see that you want to attempt settling with them. This is a reasonable option to get from under your debt. Prior to looking at any debt consolidation company to assist you in your efforts, you should determine if negotiating the debts down to a pay off amount you can handle is even the best option for you at this time.
Lets take a closer look to see if debt consolidation is a good option, given your personal circumstances.
5 things you can check for in a debt consolidation company.
There are no shortage of bad actors in the debt consolidation industry. Here are some things you can look for in a company you would trust with your finances.
- Has the company been around long enough to not just be good at what they do, but to develop a good reputation with customers?
- Is the company listed with the BBB, and are there many complaints? If too many complaints, that may be a red flag. If few complaints, are they closed or resolved?
- What do online review sites have to say about the company? This is not a make or break element to my own personal decisions of who to trust or spend money with, but it can become obvious when there are too many bad experiences being reported independent of each other and on multiple different websites.
- How informative is the customer service representative you speak with? Debt consolidation companies have a tendency to downplay the risks and drawbacks to debt settlement, mostly when it comes to credit reporting damage, or that you can still be sued after hiring a settlement company.
- The fees for debt consolidation services, and when they are paid, should factor into your decisions too. Cost may not be a trust factor, but the higher the fees, the longer it can take to complete the program you enroll in.
Given that you are already dealing with debt collectors, your debts are seasoned (late enough) to start settling. It would be a good idea to get started with prioritizing who you are going to settle with first, second, etc.
Talking with a debt settlement professional you can trust is a phone call away in most instances. You can do your research about the company or the person either before, or after you speak with them.
I welcome you to speak with, or check out any of the debt consolidation professionals I refer to on this site. You can also use the hotline to speak with someone at 800-939-8357, and choose option 2.
Readers are welcome to post questions or concerns about how to identify trust factors in a debt consolidation company in the comments below.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
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