According to research, only 1.6 percent of Americans have a good credit score. This means that most people have overwhelming debts, which can be stressful. Too much debt can have an adverse effect on your health and may even delay your financial plans, such as saving for retirement or buying a home.
Finding a way to be debt-free can be quite challenging yet essential. It requires more than just paying your credit loans. You need to change your spending habits, learn how to budget, prioritize debts, create retirement and emergency funds, and most importantly, know what to look for in a debt relief company if you decide to take that option.
Debt relief companies are third-party firms that negotiate debts on behalf of their clients. They can help you get out of debt as quickly as possible by negotiating to cancel, reduce or alter your outstanding credit debts. However, you have to choose a reliable and qualified debt relief company to get the help that you need.
Here are a few factors to consider when looking for a debt relief company:
Commitment
A debt relief company must have a passion for helping its clients get out of debt. Consider finding a company that will spare no effort till they get a solution for you. Look at their willingness to go the extra mile to help you, and also, be sure to ask as many questions as you can about the debt relief options they offer you. Some of the debt relief options may include bankruptcy, credit counseling, debt settlement, or debt consolidation, among more.
Competence
There are many debt relief companies, but not all of them are competent enough to get you out of debt. Some may cause you to get into more debt. Find a company that has professionals that are experienced and educated on various debt relief options. Be sure that the debt relief company you work with fully understands your debt situation and the debt repayment options. You can gauge a company’s competence by asking questions such as:
- What advice can you give me on my financial situation?
- What are my best options out of debt?
- What is the difference between secured and unsecured debt?
- How much can I save on my total debt using this specific option?
Reviews
Looking at a company’s reviews is very important. This is where you learn what other past clients say about the company’s services. If you find that most reviews are negative, consider avoiding that company because you most likely will get the same treatment. Also, if you find all the reviews are positive, consider asking for a contact of a client who once benefited from the company’s services. Customer experiences can help you learn a lot about the company, saving you from lots of trouble.
Transparency
You must find a company that has transparent terms. A good company like Freedom Debt Relief does not charge you any upfront fees or extra administrative charges. More so, they should not add any charges from what you agreed when you signed a contract with them. So, be sure to find out all the cost details before signing any contract. Also, compare their charges with their competitors to know if the price is fair or exaggerated.
Accreditation
All debt relief companies should be authorized to operate. Find out if the company is accredited by a major trade organization, such as American Fair Credit Council (AFCC). Most companies certified by this organization tend to operate with very high standards. This is because they often get evaluated to ensure they meet the specific standards speculated by the organization and the law.
