Debt Resolution Companies… can they really help you with your debt?
I understand why people might think that working with a debt resolution company is a rip-off. I mean, why not get rid of debt yourself and just pay back what you owe?
The thing is…it’s not always that simple. Sometimes, people get stuck in the debilitating cycle of debt, and no matter how hard they try, they can’t seem to get ahead of their finances. That’s when debt relief services can be really helpful. A good partner can give you the resources and support you need to reduce debt and reach your goals. However, you need to do some research first.
Remember: Not all debt resolution companies are the same! There are plenty of shady businesses out there that give honest debt resolution companies a bad reputation. The bad companies may sound legitimate at first, but they can end up costing you more money in the end, even bringing you financial harm. Learn how to sort the bad eggs from the good, and don’t fall victim to deceptive claims.
How do you tell a good company from a bad one? Here are some signs to look out for.
- A good debt resolution company will thoroughly review your situation, evaluate whether you are a good fit for their program, and give you your best options for dealing with debt.
Not everyone benefits from debt resolution. For some, another debt relief option may be more suitable. A good debt resolution company will not only find out what lead to your financial hardship but will also evaluate whether the program can help you better your finances in the long-run. If you are not a good fit for debt resolution, the company will refer you to other resources that could help.
- A good debt resolution company will openly discuss the pros and cons of debt resolution and explain the risks to you.
As with all debt relief options, there are both positives and negatives. A reputable company will be honest with you from the beginning without misrepresenting the debt resolution process. On the other hand, a bad company will gloss over any disclosures and only highlight the positives of debt resolution.
- A good debt resolution company will not charge any fees until you complete a settlement.
Bad companies will charge you fees BEFORE they get you any results. If you encounter a company like this, steer clear! Good companies will want you to think carefully before enrolling in their program and encourage you to make the decision that’s right for you.
- A good debt resolution company will be accredited by the American Fair Credit Council (AFCC), an association dedicated to supporting consumers with overwhelming credit and debt problems, promoting and adhering to best practices in the credit advocacy industry.
Currently, there are fewer than 20 companies in the entire country formally accredited by the AFCC. Freedom Debt Relief is one of those companies.
When you consider working with a debt resolution company, make sure to keep these things in mind and weigh out whether it is a reputable business. Choosing a partner to help you with your debt is an important financial decision. If you are struggling to pay your bills or have at least $10,000 in unsecured debt, it may be worthwhile to consider debt resolution. Working with a reputable debt resolution company can give you the tools and support you need in order to be successful!