Simplifying Your Search For Debt Settlement Companies
Debt settlement companies work with your creditors to reduce your
debt balance. Your search for debt settlement companies may even
find ones who can reduce your debts by as much as 75%.
The best way to simplify your search for debt settlement
companies is to understand how they work and what they can do for
you. Once you understand how a reputable debt settlement company
can help you, your search for debt settlement companies is made
Following are some tools to weed out the ones you don’t want to
It’s important to realize however that debt settlement is only
for people who are close to bankruptcy, it’s not available for
people who are looking for an easy way out of having to pay back
In your search for debt settlement companies you’ll find that
most have fees including start up and maintenance fees.
Essentially what happens is that reliable debt settlement
companies will collect money from you on a monthly basis and put
this money in trust until you have built up enough to begin
settling one or more of your accounts.
When a designated amount has been accumulated, the debt
settlement company will then contact your creditors and begin the
negotiation process on your behalf. Once a debt settlement is
reached the money is sent to that creditor and you begin the
process again for any other debts you may have.
Note that most debt settlement companies also charge a percentage
of the amount they have saved you in what is called a settlement
Another important thing to bear in mind is that while you’re
accumulating money and your money is being held in trust you’re
also building last fees and interest charges both of which add to
your overall balance.
When reliable debt settlement companies charge you a settlement
fee, their fee is based on the original balance not the current
balance. Beware of debt settlement companies who insist on
applying their fee to the current balance.
Your search for debt settlement companies may locate some
reliable debt settlement companies that will assign you a credit
counsellor to further provide the financial tools to help keep
your spending healthy and in check.
Finally, many reliable debt settlement companies will offer a
free consultation. Therefore, when starting your search for debt
settlement companies it’s best to look for ones who encourage
business through a complimentary look at your financial picture.
As a rule, such companies are more reliable than those who ask
for fees upfront.