How to Choose a Debt Settlement Company

A rapidly growing trend among people in debt is to use a debt consolidation or debt settlement service to help them get out of debt quickly and save money on monthly costs, but do consumers really know how to choose a debt settlement company? As it is with any major decision in life, it is vital that the proper research is done. People need to know who it is they are getting into business with to avoid being caught in a scam that would inevitably end up losing them money. Before getting involved with any debt settlement company, be sure to make the necessary inquiries.

Accreditation by TASC or USOBA
Knowing how to choose a debt settlement company can be made simple if a customer merely makes sure the company has the proper accreditation. Before entering any business transaction, ask the potential debt settlement company if they have been accredited. This will help prove that they are professionals and not just after your money. If the debt settlement company is accredited by either TASC (The Association of Settlement Companies) or USOBA (United States Organizations for Bankruptcy Alternative), this means an impartial group appraised the company and officially approved it, expressing the company to be a reputable one.

Money-back Guarantee

A person’s possible choices when deciding how to choose a debt settlement company can be further narrowed down when looking at the guarantees of each company. If a debt settlement or debt consolidation company promises to be able to settle their customer’s accounts, and then are discovered to be unable to accomplish this feat, a money-back guarantee should be offered.

When signing with a debt settlement company, people should be cautious of the promises they make you, particularly if they claim to have no consequence on a credit score. By signing up for a debt settlement company’s services, your credit score actually will decrease initially because it shows you are close to bankruptcy. However, by making bill payments on time continuously, your score will eventually increase.

Consider the Cost

When learning how to choose a debt settlement company, most people know that the cost is an essential factor in their choice. If a person cannot afford a debt settlement service, they obviously should not pick that company for their debt consolidation needs. By choosing a company that is too expensive for them, a person is actually setting themselves further back in their pursuit of a release from debt.

The questions above are ones that any potential customer should ask when deciding how to choose a debt settlement company. By making prudent investigations of each company, a consumer will know exactly which ones are at a good cost for them, have a good reputation, and only make promises they can fulfill. With the right research and the right questions, consumers will know how to choose a debt settlement company for the right reasons.