Your mail box is flooded with solicitation mails sent by debt consolidation companies beckoning you to enroll for their debt help program. How do you react to such requests? There are many debtors that succumb to these solicitation mails while few others that are more cautious don’t tread this path. It is said that debt consolidation companies or for that matter any other debt help firm shouldn’t be coming after you. Instead you should be getting their names through referrals. You get to know these firms from a friend or a relative that has availed the program earlier and derived benefit from the same.
However, not all companies that send solicitation through junk mail are scam artists. There may be few that are reliable but it is seldom. If a particular debt consolidation company is advertising their services on television, you can trust them because they are not targeting individual debtors but appealing to a broad audience.
One of the common complaints against the debt consolidation companies is that these companies charge very high upfront fees when you sign the initial contract. It may be mentioned here that unless you are facing financial hardship you will not approach a debt help clinic. And to add to the woes if the debt consolidation company you have banked upon takes the upfront fees from you and fails to deliver what they have promised, it can be very painstaking and can cause a lot of mental agony. And that is what majority of the debt consolidation companies that send their requests through junk mails do.
Due to the increase in the number of complaints, the Better Business Bureau has urged debtors to be well acquainted with the debt help program they are enrolling for. It is important to understand the underlying concept of the debt relief program you are opting for so that you cannot be taken for a ride. Find out if the company you are hiring is accredited by the Better Business Bureau or not.
When you enroll for a debt consolidation program, the debt consolidation program you have hired negotiates with your creditors on your behalf. As an outcome of the negotiation you get to enjoy reduced interest rate and lower monthly payments. A repayment plan is also worked out that enables you to make your payments systematically.
However, not all companies that send solicitation through junk mail are scam artists. There may be few that are reliable but it is seldom. If a particular debt consolidation company is advertising their services on television, you can trust them because they are not targeting individual debtors but appealing to a broad audience.
One of the common complaints against the debt consolidation companies is that these companies charge very high upfront fees when you sign the initial contract. It may be mentioned here that unless you are facing financial hardship you will not approach a debt help clinic. And to add to the woes if the debt consolidation company you have banked upon takes the upfront fees from you and fails to deliver what they have promised, it can be very painstaking and can cause a lot of mental agony. And that is what majority of the debt consolidation companies that send their requests through junk mails do.
Due to the increase in the number of complaints, the Better Business Bureau has urged debtors to be well acquainted with the debt help program they are enrolling for. It is important to understand the underlying concept of the debt relief program you are opting for so that you cannot be taken for a ride. Find out if the company you are hiring is accredited by the Better Business Bureau or not.
When you enroll for a debt consolidation program, the debt consolidation program you have hired negotiates with your creditors on your behalf. As an outcome of the negotiation you get to enjoy reduced interest rate and lower monthly payments. A repayment plan is also worked out that enables you to make your payments systematically.
3 comments:
I think that debt settlement companies can be really helpful when they are absolutely necessary.
This is perfect, it dispelled some opposition I had read.
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