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Criteria for Choosing the Best Debt Relief Company

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Choosing the best debt relief company can help you pay less than you owe to settle debts. This is referred to as debt settlement. Before engaging a third-party company to help you manage and settle your debt, it’s vital to do some background research because there are many options. An ideal debt relief company charges reasonable fees and has an overall positive reputation. 

According to the Federal Trade Commission (FTC), you should contact your state attorney general to get the correct information about a specific debt relief company. You can also get this information from your local Consumer Protection Agency. Don’t rely on the information you get from the debt relief company, do your homework and get the facts.

This article discusses the criteria for choosing the best debt relief company.

How Do Debt Relief Companies Work?

Debt relief agencies are profit or non-profit organizations that help consumers settle their debt. They negotiate with your creditors to ensure you get lower interest rates, penalties, and fees cancellations. The target clients for these companies are consumers who have been overwhelmed by debt and cannot figure out how to settle the debt on their own. 

Although many dependable debt relief companies are out there, it’s also crucial to note that this industry has many scammers. As the FTC advises, you should be judicious when choosing a debt relief company. Be wary of debt relief companies who collect fees before they even settle your debt. 

How Can You Know the Best Debt Relief Company?

Choosing the best debt relief company is a complex affair requiring careful and adequate research. Here are some points that can help you choose the best debt relief company.

  • Reasonable turnaround time: A reputable debt relief company can help settle your debt in 3 to 5 years. They do their work promptly because they have established robust working relationships with the leading financial institutions and can negotiate your settlement faster. If the debt relief company has no ideal working relationships with lenders, it may take longer to bring your case to a close. 
  • No upfront fees: According to a ruling FTC made on October 27th, 2010. No debt relief company can charge you fees before they settle your debt. If they do so, the government can shut them down for going against the law. 
  • No extra charges: Some debt relief companies circumvent the law to charge extra features such as consultation fees, signing fees, and installation fees to get extra money from you. An ideal debt settlement company will only charge a settlement fee that you only pay after settling your debt. 
  • No passing personal information to a third party: Some debt relief companies work as brokers who will pass your account to a different agent to settle your debt. This means your personal information is transferred to another party to help resolve your debt. When choosing a debt relief company, ensure they will handle your case to a conclusion without a third party, 
  • A skilled financial team: Debt relief is a task that only experienced debt specialists should handle, like the ones you’ll find at If the company has qualified and experienced personnel, you can rest assured that you will get the best settlement deal for your debt. Ask the debt relief company about their history of settling debts since their Inception. 
  • Transparency: A suitable debt relief company should offer factual information about its services. For instance, they should not promise you they will protect you from lawsuits, and debt collectors or debt settlement will not affect your credit score. Check for factual information from their website to see whether they are transparent in their business. 
  • Time in business: When choosing a debt relief company, it’s also essential to check how long they have been in business. The length of time the company has been in existence shows its stability status. They are likely to have many customer reviews and complaints, so you can make an informed decision. In addition, they have experienced staff that can make your debt settlement effortless. 
  • Customer satisfaction and reputation: Customer reviews about debt relief companies are one of the best ways of judging a company’s reputation. If the company has overwhelmingly positive reviews, you can trust the quality of its services. Check for use and writing about the different debt relief companies from service providers such as Trust Pilot, TrustLink, and other third-party organizations. When customers are happy about the services they receive from a specific company, they will rate them highly. 

You can easily choose the best debt relief company with the above criteria. Ask the right questions and do background research to verify the company’s reputation and if they are the best ones for your case. 

How to Verify the Reputation of a Debt Relief Company

Before handling management to a debt relief company, it’s essential to confirm if the company is legitimate; consider the following:

Check with the Consumer Financial Protection Bureau (CFPB) 

Check if there are any complaints about the company from CFPB and how they were handled. If the company has only recorded a few complaints with CFPB, they can help. On the other hand, if they have many unresolved complaints, you should be wary about working at this company. 

Check With Your State Attorney General

Contact your state attorney general and get information about the specific debt relief company on whether any complaints have been launched against the company. If you find the company questionable, you can work with another. 

Confirm the Company’s Reputation With the Better Business Bureau (BBB)

Check the company’s profile in BBB and see if there are any complaints against a company. You are ideal debt relief companies should have an A rating or higher. 

American Fair Credit Council Membership (AFCC)

This Trade Association fights for consumers who seek to resolve their death via debt relief companies. If the debt relief company is a member of AFCC, it’s an indication they are legitimate and uphold high standards in attending to their customers. If the company is not a member of AFCC, it could be that they have not been in this business for long or are unwilling to operate in the high standards the trade association promotes.

Seek Professional Help Today!

Choosing a debt relief company can be an uphill task, especially if you are new to this industry. The proliferation of scammers has made it even harder for those seeking to settle their debts via debt relief companies. You now know the criteria for choosing the best debt relief company with the above information. With the correct information and guidance, you’ll not land in the hand of scammers who can make your debt situation worse. 

Opting to work with a reputable debt relief company will help you settle faster. Look for a trusted debt relief company with a history of successively settling debts for its clients’ Legitimate ones do not charge any additional fees but only a settlement fee once your debts are settled.

Featured Photo by Towfiqu barbhuiya on Unsplash