If you’re considering debt settlement as a way to resolve outstanding debts you’re having problems keeping up with, you may choose to be represented by a debt settlement company. Many people prefer using debt settlement companies to the other options they have for debt settlement. However, using a debt settlement company has drawbacks as well as advantages. Moreover, some debt settlement companies are better than others, and you’ll want the best possible representation during a debt settlement negotiation.
Benefits and Drawbacks of using a Debt Settlement Company
Debt settlement companies offer a number of potential advantages as well as plenty of potential drawbacks. Frequently, the difference between a good and bad debt settlement company is how well they maximize these advantages and minimize the drawbacks.
Advantages of a Debt Settlement Company
One of the biggest advantages of a debt settlement company is experience. Most people seeking debt settlement are new to the process and don’t understand how it works. Debt settlement company agents have worked on many more cases than any individual. As a result, they’ll have experience working with creditors, and may even have worked with your lenders before As a result, they’ll know how negotiations generally progress and understand what a company will and won’t be willing to accept to settle the debt. This means you might get a better deal because an agent from these kinds of companies will be able to push the company to settle for less than if the lender was working directly with you.
Additionally, many debt settlement companies work for much less money than it would take to hire a lawyer. It’s important to keep in mind that, unless you’re representing yourself, you’ll have to pay some kind of money or fee for your debt settlement representation. However, there’s a reason why debt settlement companies cost less than a lawyer.
Disadvantages of using a Debt Settlement Company
Debt settlement companies don’t have to have any kind of certification or training requirements for their employees. Even those that do won’t have the level of experience that a lawyer can offer, which means the outcome you get with a debt settlement company might not be as good as the outcome you would get with a lawyer.
Additionally, depending on your abilities and familiarity with negotiations, a debt settlement company costs money. If you’re having trouble paying your debts, then you might not be able to afford a debt settlement company. Some companies work at a flat rate while others charge a percentage of the debt the final settlement removes. This means that you won’t be saving as much money as you expect.
Choosing the Best Debt Settlement Company
In order to choose the best debt settlement company, you’ll want to find one that maximizes the advantages of choosing a debt settlement company while minimizing the disadvantages. That means a company that saves you the most money, while at the same time having the lowest fees.
Many companies have one or more lawyers in house. This provides a good middle ground between paying a lawyer and not having any access to a trained attorney. This allows other agents to handle to bulk of your case while having access to legal expertise when needed.
Another good quality for a debt settlement company is for them to work at a flat rate. This will allow you to predict the amount of money it will cost to retain their services. Companies that are paid on commission might seem appealing, but the more success they have the more you’ll have to pay, and that can lead to unexpectedly high bills for the debt settlement company.
Finally, you should research the companies that you are considering to see what kind of reviews their customers have left. Keep in mind that more people will bother to write reviews if they are unhappy than if they are pleased with the results This means that you shouldn’t be surprised to find more bad reviews than good ones for almost every debt settlement company. In addition to reviews, customers should also look for documents that show a before and after for customer’s debts. This will tell you if the company has worked with your creditors before and show you proof of the real world results they’ve achieved.