How to Choose a Debt Settlement Company

September 18, 2019

With so many different options and companies out there for debt settlement, it becomes overwhelming with where to look. How do you know what to ask, who you can trust, and what is the best option given your situation? All valid questions. And with questions there are always answers, but having the time to find them is another problem. So to save you time, money, and a lot more questions, here is all the information you need on finding the right company to help settle your debt.

Debt settlement should not be taken lightly

Debt settlement should not be taken lightly especially if you’re already concerned about your credit score. So, let’s take a deeper look into what debt settlement is before we choose this route. Debt settlement is negotiating your debts to a lower value from what you originally owe. In order to do this, you have to prove you are facing financial hardship. How do you do that? You have to stop making payments on your credit cards. But won’t that affect my credit score with all those late payments? Yes. How does that help then, aren’t I trying to bring my score up? Once you are able to demonstrate hardship to creditors, you will have negotiating power, which means you can either call the creditors yourself or go through an agency such as DebtQuest to handle it for you.

Most agencies have already established relationships with credit card companies so they would be able to save you up to 50% of what your total balance was. In addition, this saves you the hassle of trying to call around everywhere and can instead focus on re-establishing your credit score. Once you or a debt settlement company reach an agreed upon amount with the creditor, you begin your monthly repayment plan. It will take time for your credit score to go back up, but after some patience and consistent payments, you will begin to see that number climb.

How Do We Know What Debt Settlement Company To Choose

1Now that we’ve got that covered, how do we know what company to choose in order to help us with this daunting task? First off, you are going to want to go with a company that’s not just going to tell you what to do, but educate you. If there’s no education to back up this process, then what’s to say you aren’t going to end up in this exact situation once again in the future?

It’s best to get a handle on your finances as soon as possible and to prevent things from progressing to bankruptcy. Plus, if a company is educating you, they are also providing you with every feasible option and allowing you to ask the questions you need in order to get a better understanding. Education, knowing your options, and understanding will all work towards a solid financial future.

2Another thing you will want to look for is honesty. A debt settlement company should be honest about what is going to happen as you go through this process. Any company that’s telling you your credit will be fine and you will see an increase immediately is not providing you with the whole story.

3Any time you make a late payment or have a negative remark on your credit, it stays on your report for up to 7 years. You can hire companies like Lexington Law to assist in removing negative remarks, but for the most part you need to be aware that it will show up on your report for awhile. Not to mention, your credit score will go down. With debt settlement this is inevitable, but it will also go back up. You just have to make sure you are making your payments on time and you are exploring other ways to build your credit in the meantime, which DebtQuest can advise you on.

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4Last, but definitely not least, you are going to want to investigate a company’s credibility. There are A LOT of debt settlement companies out there and for every valid one, there are about 10 scam artists just waiting for you to take the bait. Do your due diligence and look at reviews, talk to people you know, and go online to the Better Business Bureau. Make sure your sources are reliable and your detective research is on point. Another way to identify whether or not a company is credible is by how much they are promising you can save with a settlement. No one is going to be able to negotiate 100% of your debt, but it is realistic to expect to save anywhere from 20-50% of the total owed.

As you are going through this process try to remember these key points: credibility, honesty, education, diligence and patience. It will take all 5 in order to achieve the credit score you’re looking for. If you have further questions about debt settlement and want to talk to an agent today, feel free to call the number below to get your financial life back on track.