According to America’s Debt Help Organization, an average person has at least four credit cards. Over 189 million U.S citizens have credit cards, and on average, each household with a credit card carries $8,398 in debt. This debt ratio may keep increasing if you do not hire the right debt settlement partner.
Various financial institutions help in debt settlement. Today the total U.S consumer debt is at $13.86 trillion. And the forecast suggests, this may increase by 14.8% annually in the coming years. People in the age group of 45-54 hold the maximum debt, which accounts for about $134,600. The Northwestern Mutual Survey claims, about 40% of the monthly income is spent on entertainment and other discretionary costs.
To reduce the financial burden, you must seek help from a reputed finance company to settle the debt. And to choose the right debt settlement partner, you must follow the following tips.
Look for Industry Experts’ Recommendation
To hire the best financial expert, you must carry out thorough research. In terms of financial issues and debt issues, Better Business Bureau (BBB) is the ideal option to research about a finance company. BBB has a robust rating system that will help you in deciding whether the company you are considering has the accreditation or not.
You must also look for agency affiliations. Many financial lenders are associated with American Consumer Credit Counselling (ACCC) or National Foundation of Credit Counselling. The association with such agencies helps in understanding the reputation of the finance company. If your company is associated with such institutes, then you can go for it.
Learn the Laws of Debt Relief
Your finance partner will guide you about the laws, but it is best to have a better understanding of the finance laws beforehand. Many companies try to bait their customers, and in the end, instead of paying less, you end up paying more. There are various options for reducing the debt like debt consolidation, debt management, and debt settlement.
The laws can protect you from getting cheated and from paying more. For instance, lenders cannot make false promises about what they can do for you. The Federal law prohibits debt settlement companies from charging you upfront. The fees have to be as a part of your monthly payment plan.
Research the Company History for Lawsuits or Complaints
Various websites like Yelp and Google, help in learning about a company’s reviews. You must look for references as well, or previous client reviews to learn about the company history and past performance. If your company has built a good reputation, then it will have good ratings and positive reviews.
You must also look for genuine and fake reviews. Most of the companies buy reviews to enhance their reputation on the online platform. In such cases, trust your instincts and try comparing the services with other reputed debt settlement companies.
Lastly, every debt holder needs to understand the terms and language of the debt settlement business. There are other positive approaches to solve the delinquency issue as well. If a debt holder is disciplined and motivated enough, then the debt problem can be resolved with his efforts.