Debt negotiation companies
In this economy many people are finding it difficult to make payments on their debt, which has increased the use of the services of debt negotiation companies & debt negotiation attorneys. They can help someone pay off their debts for less than what is owed. They do the negotiating with the lender for a fee paid by the consumer. While there are scams, there are many reputable debt negotiation companies. Once you think that debt negotiation is your best course of action you can begin your search in the phone book or online for reputable companies that specialize in debt negotiation. When researching possible companies to use, you should check with the BBB to see how the company rates and if there have been any complaints.
Using the services of a reputable company, such as debt negotiation associates or an individual debt negotiation attorney will enable you to get the best possible debt reduction deal. Since they deal with companies on a regular basis they are familiar with their process and policies on debt negotiation. Using the knowledgeable services of a company specializing in negotiation will not only save you money but a lot of time. Additionally, they can help insure that your settlement agreement is legally binding. It is important to investigate the terms and conditions prior to signing up with anyone, as there is a wide range of prices and service levels.
- The Federal Trade Commission now requires that nonprofit debt relief companies must not collect a fee until they actually have been successful at negotiating with creditors.
- To be compliant the company must also give a written agreement or plan that both the creditor and consumer agree to.
- They are not allowed to misrepresent their abilities, must clearly state what the cost of the service is, and how long the process should take.
- Understand that individual results of debt negotiation will vary even within the same company.
It is important to understand that not all debt can be eliminated or negotiated. Secured debt like a home mortgage or car cannot be negotiated. However, unsecured debt that can include things like credit cards and personal loans can be successfully negotiated for a fraction of what is owed. You will typically have two options to consider, either a lump sum payment or a reduced rate payment over time. A lump sum payment will clear up your account faster than payments over time.