When it comes to debt, there are instances when one is not able to make repayments simply because their economic status may have changed for the worse. Sometimes, debt relief could be the only option that you have when your debt becomes overwhelming. However, you need to know that debt relief may not be suitable for everyone. As such, you may need to undergo some form of debt counseling so you can know whether debt relief will work for you or not. Companies such as SFGate know exactly what you need to get the best debt relief services. You can always consult a debt relief company to help assess your debt and tell you what exactly you need to do to manage debts.
Before discussing tips to choose a debt relief company, it is important to say how such companies work to help people manage their debts. Well, with a debt relief company, they will negotiate with your creditors so they can reduce the amounts you own them. This only works for people who are too financially constrained that they may not repay the loans they owe. So, what happens is that one stops paying the debts and opens a savings account where they put monthly payments on it.
Tips To Help You Choose a Debt Relief Company
Before you choose a suitable debt relief company, you should research so you know what is expected of the company. Such a company should have characteristics that make it better than the rest.
Consider the following tips:
1. The company should have qualified consultants
One of the best ways to get the right services is by ensuring the company has qualified staff. The best debt relief company should hire qualified staff such as tax lawyers, former IRS staff, Certified Public Accountants, and other professionals. This kind of staff should be adequately trained about debt counseling and have other suitable skills.
2. The company should offer free payment plans and consultation
You should choose a debt relief company that can offer you a free consultation. Such a company should also offer you realistic options when it comes to debt resolutions. Generally, a company that adheres to industry standards should be good for you. They should not charge you before your debt relief settlement. You should also consider their terms and conditions so that you are not disadvantaged in any way.
3. Should offer realistic solutions
The debt relief and the tax relief industry are guided and regulated by the Federal Trade Commissions (FTC). You should therefore be aware of the kind of solutions available for your situation, based on the FTC guidelines. As such, your debt relief company should offer you solutions that are acceptable by the FTC. If the company you have chosen does not offer realistic solutions or those that are aligned to the FTC, then you can consider another debt relief company.
4. Read and consider customer reviews
You can tell a good debt relief company from the reviews of the people who have dealt with it. If the level of satisfaction is not good, then you can find a better option. Many sites do not verify the reviews written by contributors. As such, beware of such websites and only rely on reviews that can be trusted to be true.
5. Lawsuits and complaints
This is yet another important factor you should consider when finding a suitable debt relief company. Are there clients who have sued the company? Are there clients who have had complaints about the company? How were such complaints handled? Check all the possible red flags before you decide to have the company work on your case. Are there complaints that have been filed with the IRS regarding the debt relief company in question? What about any complaints with the IFC? If the company has a history of complaints with its clients, this is a clear indication that it is not trustworthy.
6. Consider the Interest rate the company offers
You should consider the interest rate your lender is proposing for the debt consolidation. This should be lower than what one is paying on their credit cards. You should not just focus on the lower payments and forget the overall interest rate. You need to benefit from lower rates so that you can for sure be relieved.
If you weigh on the above factors, it should be easy for you to know the best debt relief company that can help you. You can therefore consult with credit counselors so that you can understand your debt, take control of it and reap the benefits of the debt relief.