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How to choose a reliable debt relief organization

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By: tiarajoseph11
on 14th Jan,2014

When you enroll in a consolidation or settlement program, it asks you to pay a certain amount every month.
How to choose a reliable debt relief organization


 

When you are struggling to pay back your debts, you might need professional help. However, in order to get professional help, at first, you should choose a reliable debt relief organization, so that it can help you get out of debt completely.

 

Debt relief organizations – What they are

When you approach a debt relief organization, it assesses your financial condition and decides whether consolidation or settlement will be a suitable option for you. When you enroll in a consolidation or settlement program, it asks you to pay a certain amount every month. They use the amount to pay the creditors a relatively lower monthly payment (in case of consolidation) or a reduced payoff amount (in case of settlement). With time, you are able to get out of debt completely.

 

7 Tips to choose a reliable debt relief organization

Here are 7 tips to choose a reliable debt relief organization.

  1. Shop around and take references from people – One of the best ways to choose a reliable debt relief organization is to take references from your friends and relatives, who have already taken help from the organizations. On the basis of the references you can shop around and compare the terms and conditions of the different companies. If you choose one organization without shopping around, then you might be unaware whether or not some other company is offering similar services at relatively lower cost. 
  2. The organization should be a licensed one – While you are doing the first screening regarding choosing a debt consolidation/settlement company, make sure that it has valid license to operate in your state. It goes without saying that you should not select a company which doesn’t have the required license.
  3. It should provide free counseling session - As per FTC rule, a debt relief organization should provide you with a free counseling session. So, do not choose a company which asks money for the counseling session. A company should provide a counseling session and a quote which will give you an idea regarding how much it will take to become debt free, especially, in case of consolidation. It should also disclose how much you need to pay as professional fees.
  4. It should have BBB certification – It is advisable you check BBB (Better Business Bureau) records in order to find out whether or not it has received high ratings. There may be unresolved complaints against the debt relief organization. Therefore, it is always better to choose a company which has high ratings from the Better Business Bureau.
  5. Check out customers’ feedback – You should also check customers’ feedback in order to know whether or not the customers are satisfied with the debt consolidation/settlement company. You can read customer reviews to know how fast they are in resolving customer complaints.
  6. Does it offer any additional service – Some good debt relief organizations also offer additional service without charging any extra dollars. Such services include budgeting tips, which they can offer after careful assessment of your financial scenario, following which it becomes easier for you to get out of debt. You can be assured that a company not offering such services can be only interested in their financial gain instead of improving your financial condition.
  7. Has enough experience – It is always better to ask professional help from a company which has sufficient and relevant experience. It is advisable that you get help from an organization which has at least 3 years of relevant experience in offering debt consolidation and/or debt settlement services.

 

Before you enroll with a debt relief company, make sure you get everything in writing. You should go through the terms and conditions carefully so that you are aware of every detail, which will help you work with the company and get out of debt in a systematic way.

 

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